CETV Guarantee

Rocket_Scientist

I am in the final stages of doing a partial transfer from my pension with a previous employer. I was expecting the money to be transferred last week. 

They have now advised my IFA that the CETV has been ‘miscalculated’ and they will let me know the new figure in a few days. I will just have to wait and see I guess…..

I thought the CETV was guaranteed? I am within the 3 month time limit, 
I have taken expensive advice on doing this transfer, and that was based on my CETV figure. 

I don’t know if the figure will go up or down, but I’m feeling very annoyed. 
Has this happened to anyone else? 

biscan25

It's guaranteed to the extent that market conditions etc. are locked in. If it's incorrect they will have rights to correct it (even if it has already been paid out), but you should be compensated for any losses, e.g. if you had to pay for additional advice.

That said, if it is calculated based on today's market conditions rather than up to 3 months' ago, it will be substantially lower today because of the way bond yields have moved. You should ensure the revised transfer value is based on the original date.