Private pension transfer

spurdog1

I have now heard back from my pension (as opposed to my wife's) provider. The pension is known as a "defined benefit arrangement". Therefore reading between some very unclear lines, they provided a 25% pot, but by the Govt agencies are not allowed to cash in the complete amount.

Hopefully you will now be able to tell me more about this complex arrangement, please.

xylophone

I have now heard back from my pension (as opposed to my wife's) provider. The pension is known as a "defined benefit arrangement". Therefore reading between some very unclear lines, they provided a 25% pot, but by the Govt agencies are not allowed to cash in the complete amount.
Hopefully you will now be able to tell me more about this complex arrangement, please.

Have you and your wife now sorted out the decision relating to your wife's pension?

Presumably you have been in receipt of your own DB occupational pension for some years?

Are you saying that you are  seeking "trivial commutation" of your own pension? 

xylophone

Another question, in your first post, you said

I did last year have a financial advisor to convert my funds to a pension, but i feel he may charge. Sorry thats as best info i have....
K

Are you saying that you have a DC pension in addition to your  DB occupational pension?

dunstonh

I have now heard back from my pension (as opposed to my wife's) provider. The pension is known as a "defined benefit arrangement". Therefore reading between some very unclear lines, they provided a 25% pot, but by the Govt agencies are not allowed to cash in the complete amount.

There is no 25% tax free cash on defined benefit schemes.    This is because there is no pot to apply 25% to.   Instead, they get a pension commencement lump sum option that is designed to give a figure that is calculated using a defined method.

DB pensions from the Government are pretty much the gold standard.   Very few are better nowadays.

Albermarle

spurdog1 said:

I have now heard back from my pension (as opposed to my wife's) provider. The pension is known as a "defined benefit arrangement". Therefore reading between some very unclear lines, they provided a 25% pot, but by the Govt agencies are not allowed to cash in the complete amount.

Hopefully you will now be able to tell me more about this complex arrangement, please.

They are not designed to be cashed in. They are designed to provide a regular guaranteed income for life. 
Many people would rip your right arm off to have this in their retirement.

Dazed_and_C0nfused

Albermarle said:

spurdog1 said:

I have now heard back from my pension (as opposed to my wife's) provider. The pension is known as a "defined benefit arrangement". Therefore reading between some very unclear lines, they provided a 25% pot, but by the Govt agencies are not allowed to cash in the complete amount.

Hopefully you will now be able to tell me more about this complex arrangement, please.

They are not designed to be cashed in. They are designed to provide a regular guaranteed income for life. 
Many people would rip your right arm off to have this in their retirement.

And there's be a queue to take your left one as well 😄

spurdog1

xylophone said:

Another question, in your first post, you said

I did last year have a financial advisor to convert my funds to a pension, but i feel he may charge. Sorry thats as best info i have....
K

Are you saying that you have a DC pension in addition to your  DB occupational pension?

DB/DC are I am not sure what they are? My own DB is £31.15 per month, for the next 30 odd years (started last year).

xylophone

DB/DC are I am not sure what they are? My own DB is £31.15 per month, for the next 30 odd years (started last year).

A Defined Benefit Pension Scheme is an occupational scheme where your pension benefits are based on salary/years of service.

When the time comes to draw the pension, it is usual for the member to be offered options regarding any  tax free pension commencement lump sum (whether it is fixed/ may be larger or smaller depending on commutation rates etc) and a monthly pension which will usually be increased in payment according to an index chosen by the scheme.

A Defined Contribution Scheme is one where your contributions/your employer's contributions are (usually) invested in the stock market and build a pot of money to finance your pension.

It is possible to take 25% of the value of your pot as a tax free pension commencement lump sum.

The size of the pot depends on how well the investments perform.

You mention a very modest DB pension = presumably you were a member of the scheme for only a short time.

You said that you started taking this pension last year. Did you receive a pension commencement lump sum?

Had you  enquired as to the possibility of commuting the pension to a lump sum and extinguishing all rights in the scheme but been told that this was not possible because you had other pensions which together with your DB pension totalled more that £30,000?

You had a DC pension about which you consulted a Financial Adviser?

You mention in another post that you were born in 1956 - have you yet become eligible for your state pension?

If not, have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

spurdog1

Xylophone, I am endebted for your "staying with me" and persistence in giving a full and detailed answer

It is a DB pension, of which I was a member for two years (shows how worthless they are in this instance.
I was offered a 25% drawdown based on the fact it was over £10,000.00 at March. But I was not permitted a full drawdown as it was over 10K.
Come October the payment was 25% of 9690.00 (yes, the funds have dropped, and dropped below the £10K, so technically I should have been offered ALL at that point. Sadly the smaller payment didn't alert me until  a month ago. However my understanding is that i have a year to appeal. A year from when, though?

xylophone

It is a DB pension, of which I was a member for two years (shows how worthless they are in this instance.
I was offered a 25% drawdown based on the fact it was over £10,000.00 at March. 

There seems to be confusion here and I am finding it difficult to discern where it arises.

You state that this was definitely a DB pension.

A DB pension is not based on "funds".

You do not "drawdown" a DB Pension.

I think that you should re-read the whole of this link

https://www.litrg.org.uk/tax-guides/pensioners/how-do-i-cash-my-small-pension

How does this information relate to your situation?

Are you now in receipt of your state pension?

If you have not yet reached SPA, what does your state pension forecast say?