Transfer of pensions with GMP/Contracted out underpins

dcreager

Hi,

I am 63 and retired.

I am considering transferring two 'old' uncrystallised, defined contribution, occupational pensions into an existing sipp (Main purpose is to take the 25% Tax free cash).  Both these pensions have GMPs/Contracted out underpins.

I understand that if the CETV of the safeguarded benefits is below £30,000 I will not be 'forced' to get financial advice (although I assume it will be at the trustees whim)

I have requested transfer out packs from both pensions.  Will these packs tell me what the CETV for the safeguarded benefits is?

Thanks

Marcon

dcreager said:

Hi,

I am 63 and retired.

I am considering transferring two 'old' uncrystallised, defined contribution, occupational pensions into an existing sipp (Main purpose is to take the 25% Tax free cash).  Both these pensions have GMPs/Contracted out underpins.

I understand that if the CETV of the safeguarded benefits is below £30,000 I will not be 'forced' to get financial advice (although I assume it will be at the trustees whim)

No; the trustees have to act in accordance with the law; 'whims' have nothing to do with it.

dcreager said:

I have requested transfer out packs from both pensions.  Will these packs tell me what the CETV for the safeguarded benefits is?

Thanks

[deleted because this part of my answer was wrong]

dcreager

Thanks for taking the trouble to answer.

I was looking at this 
'Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority (FCA) authorised adviser'
from
https://www.gov.uk/government/publications/pension-benefits-with-a-guarantee-and-the-advice-requirement/pension-benefits-with-a-guarantee-and-the-advice-requirement#the-advice-requirement-for-safeguarded-benefits

Does this not mean the value of the GMP rather than the total value of the fund?   I'm sure I am missing a nuance, apologies

xylophone

You might find this of interest.

https://www.pensions-ombudsman.org.uk/decision/2022/cas-53517-h3n1/jpmc-uk-retirement-plan-cas-53517-h3n1

xylophone

Both these pensions have GMPs/Contracted out underpins.

The GMP relates to pre 1997 - post 1997 the Reference Scheme Test (S9(2B) rights) applies - see link above.

Have you obtained a state pension forecast?

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

Were the pensions to which you refer the only contracted out schemes of which you have been a member?

dcreager

xylophone said:

You might find this of interest.

https://www.pensions-ombudsman.org.uk/decision/2022/cas-53517-h3n1/jpmc-uk-retirement-plan-cas-53517-h3n1

oh my gosh!   Yes indeed this is exactly my situation.   Thank you   Although it does not actually describe how a safeguarded benefit is valued (Or at least I don't think it does)  It does refer to the regulation, I will try and locate

dcreager

xylophone said:

Were the pensions to which you refer the only contracted out schemes of which you have been a member?

No,   I actually have a defined benefit scheme which was also contracted out

dcreager

xylophone said:

Have you obtained a state pension forecast?

Yes.   I have

Marcon

dcreager said:

Thanks for taking the trouble to answer.

I was looking at this 
'Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority (FCA) authorised adviser'
from
https://www.gov.uk/government/publications/pension-benefits-with-a-guarantee-and-the-advice-requirement/pension-benefits-with-a-guarantee-and-the-advice-requirement#the-advice-requirement-for-safeguarded-benefits

Does this not mean the value of the GMP rather than the total value of the fund?   I'm sure I am missing a nuance, apologies

No - I'm wrong! Many apologies. I've edited my post above to correct it to ensure other readers aren't misled.