DB, short service, what to do with it?

jimi_man

So if it's not the MPs one, not the LGPS one, then it seems that it's an 'unfunded' one which means that you can't transfer it out at all? (Other than to another Public Sector scheme).

JoeCrystal

Movingforwards should really say which public sector pension fund really? That would narrows the answers down. Maybe the OP works for BofE!

jimi_man

JoeCrystal said:

Movingforwards should really say which public sector pension fund really? That would narrows the answers down. Maybe the OP works for BofE!

Ah yes, another funded one. That's possible.

But yes I agree, more information would be good. It's like painting the hall through the letterbox at the moment!!

MovingForwards

It's one set up by my employer for those of us on lower grades. It is a DB pension, CARE for calculating end pension and can be transferred like the common DB's can.

I'm sorry, I know it's a PITA, but I can't say the name of it, but just think of it like any other final salary pension. 

When I've left I'm more than happy to put up numbers, or say it's more than £30k and will stay where it is. Save all the speculation.

jimi_man

I don't think people are speculating on the numbers, more whether you can actually transfer it at all. Most PS DB pensions can't be transferred out of the public sector into the private sector, unless they are 'funded' schemes (where there is essentially an investment pot that the company put yours and their contributions into), rather than 'unfunded' where the taxpayer and the employee funds the pension payments.

Also worth noting that generally, the transfer amounts for 'funded' public sector pensions, are usually pretty dismal compared to other, private DB pension, transfers.

MovingForwards

I pay in a wedge each month as does my employer. 

As an alternative.....can apply to transfer the cash equivalent value....to another pension.
....... current cash equivalent value of deferred pension. Right for a cash statement every 12 months.

It's definitely a DB as I had a choice of this or a normal DC when I joined the company. 

JoeCrystal

MovingForwards said:

It's one set up by my employer for those of us on lower grades. It is a DB pension, CARE for calculating end pension and can be transferred like the common DB's can.

I'm sorry, I know it's a PITA, but I can't say the name of it, but just think of it like any other final salary pension. 

When I've left I'm more than happy to put up numbers, or say it's more than £30k and will stay where it is. Save all the speculation.

There is no such thing as a typical DB pension scheme and there are too many public sector pension schemes that vary a lot as well since most of them are for quangos or social housings/independent groups.  It might be worth checking with your new employer if they are contributing 3% on your whole salary or just above qualifying earnings above £6,240?

MovingForwards

My current employer is the only one who does this particular DB and it's not popped up on MSE for years. All I ask is a tiny bit of privacy at the moment until I've left them. Please accept my apologies for being vague.

I get the full pension details when I start my new role, but it's 4% each and I've worked outgoings on WS and QE.

I've had a SIPP running for over a year, consolidated some old DC's into it and pay in each month. If it's QE I can add extra to make the difference up.

There's 20 odd years for me to finish getting full SP, which is all I need when reaching SPA based on today's money, running a small car and without work / mortgage outgoings.

I know it throws a lot of people off when I post as you're used to dealing with higher earner with typical lifestyles (new cars, holidays, kids etc), however I am grateful for the information provided.

MovingForwards

As we all like an ending with questions:

Finally received the paperwork and I've a transfer value of just under £14.5k. 

If I leave it in the scheme I'll get £600pa and a lump-sum of just under £1.9k

Someone posted up a USS modeller which has kind of allowed me to see what it could be worth when I reach 66; although my old DB scheme mirrors SPA which is planned to be 68 when I reach it, but wouldn't be surprised if it increases another year by then.

On paper the transfer value would fund over 2 years of early retirement, which is tempting.

At this stage, I'm not making a decision either way.

My new work pension is with R.London.

Sadly, I'm also to be receive an inheritance and I am giving serious consideration to buying a different property to meet my health needs; I'd still require a mortgage but it would be a mainstream lender this time.  The equity from the sale of my flat could be split between pensions and savings.

I expect this thread will be closed by the time I'm in a position to run ideas by you when things are more settled for me.

xylophone

it's just that, with the execption of the LGPS, they can only be transferred to another DB scheme.  

More precisely, they can only be transferred to a scheme that does not provide flexible benefits.

See p12 here (NHS Scheme).

https://www.nhsbsa.nhs.uk/sites/default/files/2018-11/Leaving Early and Transferring Out Guide (V16) - 11.2018.pdf

Presumably it would be possible to transfer out to a non flexible annuity?