SIPP Platform to Receive a Partial DB Transfer

dunstonh

a) so the DB Provider is Aon (sorry i cant post links - google Aon Partial Transfers)  so weird though it is :-) it is possible.

It's certainly possible and is expected to become more commonly available once GMP issues have been resolved. The law doesn’t allow for a partial transfer of GMP rights. It's just a rare beast. There is no statutory right to offer it, and most do not, as historically, it never used to be an option.

b) So i claim no expertise but the advise from the Regulator (at least to me) is unclear regarding a £30K transfer see pension regulator document library. So far at least the Company has interpreted it as being OK, but as others have suggested this may be the issue.

its not unclear.   They are interpreting it wrong.

Where a scheme comprises safeguarded and non-safeguarded benefits, then a partial transfer of the non-safeguarded benefits element is allowed without reference to the £30k rule (assuming no other safeguarded benefit).     So, for members of mixed benefit schemes. They have a statutory right to transfer their DC rights and leave the DB pension behind.    

Where there are safeguarded benefits, then its the total value of the element that is safeguarded that is used to determine whether advice is needed or not.

c) Sorry i don't understand your point.

You said they offered a SIPP.     As you have now mentioned Aon, we can confirm that they do not offer a SIPP.    They have occupational DC (which would have been known as a COMP or CIMP back in the days of contracting out) or a master trust scheme.   They do not offer a SIPP.

Marcon

Partial transfers have long been possible - just rare, because of the difficulties and cost of administration.

If as you say the scheme will allow a transfer of £30K to avoid the advice requirement, have you asked them if there can then be a second transfer out, and extract the balance of around £10K that way?

There are some wires crossed somewhere. 

xylophone

Partials Transfers are possible from My Wife's DB Provider cant speak for all of them.

I have seen mention of a couple of schemes (Ford/M&B)  that  (with certain restrictions) indicates this possibility  but there is no indication that a split can be  done specifically to avoid the advice requirement.

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

https://www.lcp.com/media/1150089/lcp-royal-london-2019_partial-transfers-of-db-benefits.pdf

NoMore

Makes sense that you can’t just continually transfer out 30k to avoid advice otherwise what would be the point of the 30k  limit in the first place 

FelphamFella

Thank you everyone for your replies. So far as I can work out, despite the DB provider approving the transfer the legislation requires a FA to be involved so any recipient wants no part of it. Very frustrating when the Transfer value is just above £30k. Still as someone pointed out the DWP have said they will review (though that was pre General Election) so it may be worth us waiting a while to find out.

Thanks Again

Marcon

FelphamFella said:

Thank you everyone for your replies. So far as I can work out, despite the DB provider approving the transfer the legislation requires a FA to be involved so any recipient wants no part of it. Very frustrating when the Transfer value is just above £30k. Still as someone pointed out the DWP have said they will review (though that was pre General Election) so it may be worth us waiting a while to find out.

Thanks Again

I suspect that what the provider has approved is the ability to transfer only part of the benefit. There's no statutory right to do that, so it is down to individual schemes - but the DB scheme itself is still subject to legislative requirements. My guess is that you're asking one question and they are hearing/answering another:

FF: can I transfer out just part of my benefit, up to £30K, and leave the rest in the scheme?
Provider: yes, with this scheme you can.