Frozen final salary valued at £12500pa transfer value?

I can take this unreduced at 60 but I think I would have to retire from my current company. 

Unless I was to transfer it into a different pot?

How much am I likely to get as a transfer value 20 times? 30 times?

If I leave it as is and decide to take 25% as lump sum, how is this worked out?

Thanks in advice
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  • MallyGirl
    MallyGirl Posts: 7,147 Senior Ambassador
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    I can take this unreduced at 60 but I think I would have to retire from my current company. 

    What makes you think that?

    Unless I was to transfer it into a different pot?

    Pretty difficult to transfer out of a final salary pension these days - there are many threads on here about it. You would certainly need to pay for advice which may be to not transfer out.

    How much am I likely to get as a transfer value 20 times? 30 times?

    it varies - you have to ask them for a CETV

    If I leave it as is and decide to take 25% as lump sum, how is this worked out?

    there is no 25% lump sum for a final salary pension. There may well be a lump sum but it will be according to the scheme rules rather than 25%

    Thanks in advice
    I think you need to do some research before making any decisions 
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • dunstonh
    dunstonh Posts: 119,152 Forumite
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    Frozen final salary valued at £12500pa transfer value?
    Are you sure it is frozen and not deferred?

    How much am I likely to get as a transfer value 20 times? 30 times?
    Impossible for us answer.  However, CETVs have halved in the last 2 years.    So, your window to transfer and being viable to do so has likely passed.


    If I leave it as is and decide to take 25% as lump sum, how is this worked out?
    There is no 25% with a DB pension.   There may be some pension commencement lump sum but its a defined calculation specific to that scheme.



    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 45,540 Forumite
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    I can take this unreduced at 60 but I think I would have to retire from my current company. 

    Why is this?

  • MallyGirl said:
    I can take this unreduced at 60 but I think I would have to retire from my current company. 

    What makes you think that?

    Unless I was to transfer it into a different pot?

    Pretty difficult to transfer out of a final salary pension these days - there are many threads on here about it. You would certainly need to pay for advice which may be to not transfer out.

    How much am I likely to get as a transfer value 20 times? 30 times?

    it varies - you have to ask them for a CETV

    If I leave it as is and decide to take 25% as lump sum, how is this worked out?

    there is no 25% lump sum for a final salary pension. There may well be a lump sum but it will be according to the scheme rules rather than 25%

    Thanks in advice
    I think you need to do some research before making any decisions 
    Yes I'm a long way off anyway at 49.

    Read it previously I can access benefits early only if I'm no longer employed by the company.    Rule of 85 for unreduced at 60.  Company has to consent to early retirement if I am under 60 and also it will be reduced.


    25% max can be taken as lump sum part of the terms of the pension scheme.

    Currently pay 10% and company puts in 11% to ariva DC scheme.  Pot currently at 70k and I plan on raising contributions to 18% next month.
  • xylophone said:
    I can take this unreduced at 60 but I think I would have to retire from my current company. 

    Why is this?

    Not sure exactly,  but definitely read it when the scheme was closed.  Maybe because the pension still holds the salary link? I'm not sure what that even means if the scheme was closed.
  • Brie
    Brie Posts: 14,093 Ambassador
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    You've 10 years to go before your target age so  lot may happen between now and then.  And a lot of companies have allowed people to start taking the DB benefits while remaining at work and contributing to their current DC schemes.  I would ask the pension admin team or the part of HR that deals with pensions admin whether this is now the case.  And ask again in a few years.  
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards.  If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Marcon
    Marcon Posts: 13,723 Forumite
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    MallyGirl said:
    I can take this unreduced at 60 but I think I would have to retire from my current company. 

    What makes you think that?

    Unless I was to transfer it into a different pot?

    Pretty difficult to transfer out of a final salary pension these days - there are many threads on here about it. You would certainly need to pay for advice which may be to not transfer out.

    How much am I likely to get as a transfer value 20 times? 30 times?

    it varies - you have to ask them for a CETV

    If I leave it as is and decide to take 25% as lump sum, how is this worked out?

    there is no 25% lump sum for a final salary pension. There may well be a lump sum but it will be according to the scheme rules rather than 25%

    Thanks in advice
    I think you need to do some research before making any decisions 
    Yes I'm a long way off anyway at 49.

    Read it previously I can access benefits early only if I'm no longer employed by the company.    Rule of 85 for unreduced at 60.  Company has to consent to early retirement if I am under 60 and also it will be reduced.


    25% max can be taken as lump sum part of the terms of the pension scheme.

    Currently pay 10% and company puts in 11% to ariva DC scheme.  Pot currently at 70k and I plan on raising contributions to 18% next month.
    Rule of 85...sounds like LGPS? Where's @Silvertabby when you need her...
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Silvertabby
    Silvertabby Posts: 9,932 Forumite
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    edited 17 February 2024 at 6:43PM
    Yes, it does sound like LGPS.

    If it is, then transfer factors are set by GAD and have always been on the low side.

    Although deferred benefits may be taken from (currently) 55, R85 is still linked to a minimum retirement age of 60.

    OP - which local authority holds your deferred benefits, and who do you work for now?   If, as it sounds like by your current DC pension, you are working in the private sector, then there is nothing to stop you from taking your LGPS pension at 60 and carrying on working.....

    UNLESS... you are still in the same post, but your employer decided to withdraw from the LGPS.  V. complicated, but could have meant new employees/accruals being in a DC scheme, with pre change employees keeping their LGPS/final salary link.
  • theoretica
    theoretica Posts: 12,689 Forumite
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    For clarity - the scheme has closed, but you are still employed by the same company?  You didn't leave that employer?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Yes,  it's all very complicated as company is Welsh Water but was tuped out to UNITED UTILITIES and now back working for Welsh Water again (same role)

    I was told by pension trustees that my DB pension still retains the final salary link.
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