Pension Advisor would want £21,000 for a failed transfer

Dazed_and_C0nfused

michael1234 said:

Hang on  - the 2023 statement I havew in front of me shows it being £6191.64

Surely that is simply the £6,246.64 less the Total GMP at DOE figure

The letter you have shared clearly states Pension Benefits as at date pensionable service ended.

So what is the current value?  It will surely have some form of annual inflation revaluation?

Or as @HappyHarry asked when did your service end?

Or do you think they are willing to pay you £518k just to get out of paying the £6.2k each year?  Seems unlikely to me.

michael1234

I'm a bit dazed and confused I must admit. The DC value is the 518K. Its a hybrid pension with DB underpin. That underpin I assume is the £6.2K per year.

The "drawbacks" (you referred to as "benefits") I'll try and post up next. Lets hope they don't cause any significant trouble in this mess.....

michael1234

Death drawbacks attached.

As an aside, this copy/paste just happened to catch the start of another section "Early Retirement" where it says "In practice the majority of members cannot take early retirement" - bottom of page 2.

Dazed_and_C0nfused

michael1234 said:

I'm a bit dazed and confused I must admit. The DC value is the 518K. Its a hybrid pension with DB underpin. That underpin I assume is the £6.2K per year.

The "drawbacks" (you referred to as "benefits") I'll try and post up next. Lets hope they don't cause any significant trouble in this mess.....

It could be me misunderstanding your specific pension then.

I thought the £518k was the CETV amount i.e. the figure the pension company are willing to pay you to get you off their books and remove their responsibility for paying you your DB pension entitlement.  Which I had taken as 6.2k when you stopped being an active member of the scheme, not the current valuation.

But I could be talking nonsense 😳

michael1234

Just to add I missread the context of the 6.2K in the 2023 pension statement. I think this underpin was the figure when I exited which was in 2013.

As far as I know the 518K IS the CETV figure - all document I've uploaded today come from the CETV bundle. Nothing else mentions figures.

Dazed_and_C0nfused

michael1234 said:

Just to add I missread the context of the 6.2K in the 2023 pension statement. I think this underpin was the figure when I exited which was in 2013.

As far as I know the 518K IS the CETV figure - all document I've uploaded today come from the CETV bundle. Nothing else mentions figures.

To be honest I'm lost now with what this pension really is. 

But if the DB scheme was going to pay £6.2k 11 years ago the current rate must surely be significantly more 🤔

xylophone

I tried to get clarification here


https://forums.moneysavingexpert.com/discussion/comment/81019325/#Comment_81019325

The OP's post here

https://forums.moneysavingexpert.com/discussion/comment/81017239/#Comment_81017239

is a screen shot of the notes relating to the hybrid nature of the pension. 


He also provided this

https://forums.moneysavingexpert.com/discussion/comment/81017210/#Comment_81017210


What is odd about the screenshot in the above is that there is no note/value given to the RST underpin.


He was only with the employer for 1/2 years when the GMP system ended.

The GMP was therefore very small 
 
The post 97 pension underpin is based on the Reference Scheme Test.

His RST benefits were valued at  £6,191.65 at DOL (now stated to be in 2013)

The RST benefits are said to increase in deferment "broadly in line with inflation".

I am assuming that at  scheme NRA (65)?, the pension  guaranteed benefits at least equal to the revalued GMP/RST (which presumably

would then escalate in payment by up to 3% (GMP) and 5% (RST)?

If the value within the pension at NRA was not enough to provide the guaranteed benefits, then the Trustee would top up the fund in order

to provide them.

If the value within the pension was more than enough to provide the guaranteed element, then the pensioner received the

guaranteed benefits and the balance had to be used to buy an annuity?


Or was it the case that the whole fund had to be used to buy some kind of joint life index linked annuity?


Or perhaps the excess could be used (at least in part) to provide a PCLS with the rest used to purchase an annuity?


The OP needs to clarify?

HappyHarry

Without the other information it is  difficult to be certain,  but it looks to be a CETV of £148,186 on the DB part of the pension (which was worth £6,191 per year in 2013) PLUS a DC pot of £370,144.

Qyburn

Would he be able to transfer just the DC pot, and would that help with the advice and compliance side?

xylophone

Would he be able to transfer just the DC pot, and would that help with the advice and compliance side?

This will depend on the rules of the hybrid scheme.

But the value of the DB underpin alone means that  PTS advice is required for a transfer out to a scheme offering flexible benefits.

There is no indication of whether it would be possible to leave the DB benefit only within the scheme/transfer the DB benefit only to a S32

policy and then transfer the DC without advice.

Hybrid Schemes are complex.

https://helpfiles.thepensionsregulator.gov.uk/members/hybriddetails