Tesco DB Pension not performing - transfer?

feynman33

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

Bostonerimus1

feynman33 said:

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

Variations in CETV reflect interest rate fluctuations. CETV is based on the amount of money required to purchase an equivalent annuity type pension benefit to your DB pension in today's market conditions. 

DRS1

feynman33 said:

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

I am not sure DB to DB transfers happen very much these days.  You may get a Club transfer between public sector schemes.

What you need to look at it is what benefits the receiving scheme will grant for the transfer and compare them to the ones you'd have got under the transferring scheme but it may not be easy to compare.  For example your old scheme may be a 1/60ths final salary scheme and the new one may be 1/57th CARE scheme.  It is not going to be as simple as I have 5 years under the old scheme so I should get 5 years under the new one.

feynman33

DRS1 said:

feynman33 said:

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

I am not sure DB to DB transfers happen very much these days.  You may get a Club transfer between public sector schemes.

What you need to look at it is what benefits the receiving scheme will grant for the transfer and compare them to the ones you'd have got under the transferring scheme but it may not be easy to compare.  For example your old scheme may be a 1/60ths final salary scheme and the new one may be 1/57th CARE scheme.  It is not going to be as simple as I have 5 years under the old scheme so I should get 5 years under the new one.

I'm looking at a non-club transfer, private care to public care. I think it should be as simple as comparing X per year to Y per year minus the lump sum. I expect it will be an easy decision, this thread just got me wondering how the CETV plays into it and if there is a 'bad' time to do it.

Bostonerimus1

feynman33 said:

DRS1 said:

feynman33 said:

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

I am not sure DB to DB transfers happen very much these days.  You may get a Club transfer between public sector schemes.

What you need to look at it is what benefits the receiving scheme will grant for the transfer and compare them to the ones you'd have got under the transferring scheme but it may not be easy to compare.  For example your old scheme may be a 1/60ths final salary scheme and the new one may be 1/57th CARE scheme.  It is not going to be as simple as I have 5 years under the old scheme so I should get 5 years under the new one.

I'm looking at a non-club transfer, private care to public care. I think it should be as simple as comparing X per year to Y per year minus the lump sum. I expect it will be an easy decision, this thread just got me wondering how the CETV plays into it and if there is a 'bad' time to do it.

Can you explain what you mean by "private care to public care" in detail please?

GunJack

Private company career average transferring in to a public sector career average scheme

daveyjp

GunJack said:

Private company career average transferring in to a public sector career average scheme

You will need to contact the public sector pension provider and ask how the rules work for this situation.

Silvertabby

GunJack said:

Private company career average transferring in to a public sector career average scheme

The private sector scheme, be it DC, FS or CARE, will be converted to a CETV at the current rate and then that figure will then be used to buy CARE benefits in the public sector scheme.  It certainly won't be like for like  equivalent benefits -  only a Club transfer can give you that.

feynman33

Bostonerimus1 said:

feynman33 said:

DRS1 said:

feynman33 said:

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

I am not sure DB to DB transfers happen very much these days.  You may get a Club transfer between public sector schemes.

What you need to look at it is what benefits the receiving scheme will grant for the transfer and compare them to the ones you'd have got under the transferring scheme but it may not be easy to compare.  For example your old scheme may be a 1/60ths final salary scheme and the new one may be 1/57th CARE scheme.  It is not going to be as simple as I have 5 years under the old scheme so I should get 5 years under the new one.

I'm looking at a non-club transfer, private care to public care. I think it should be as simple as comparing X per year to Y per year minus the lump sum. I expect it will be an easy decision, this thread just got me wondering how the CETV plays into it and if there is a 'bad' time to do it.

Can you explain what you mean by "private care to public care" in detail please?

Acurately explained above. I understand the proccess, was just wondering if ones quoted new annual pension can vary drastically with timing/market conditions/CETVs. It doesn't really matter, I'll either like the quote and go ahead, or i wont. I'd rather make the transfer though, and it'll be months before i receive quotes so just curioius in the meantime.

Bostonerimus1

feynman33 said:

Bostonerimus1 said:

feynman33 said:

DRS1 said:

feynman33 said:

So do drastic fluctuations in a schemes CETV's affect DB to DB transfers, or does the receiving scheme's calculations cancel the effect? It's suppossed to be regulated to protect the pension holder after all?

I'm looking to initiate the proccess shortly. Is there such thing as a bad time to do it? I guess i'll find out when i get my quotes, but in the meantime i'd like to know!

I am not sure DB to DB transfers happen very much these days.  You may get a Club transfer between public sector schemes.

What you need to look at it is what benefits the receiving scheme will grant for the transfer and compare them to the ones you'd have got under the transferring scheme but it may not be easy to compare.  For example your old scheme may be a 1/60ths final salary scheme and the new one may be 1/57th CARE scheme.  It is not going to be as simple as I have 5 years under the old scheme so I should get 5 years under the new one.

I'm looking at a non-club transfer, private care to public care. I think it should be as simple as comparing X per year to Y per year minus the lump sum. I expect it will be an easy decision, this thread just got me wondering how the CETV plays into it and if there is a 'bad' time to do it.

Can you explain what you mean by "private care to public care" in detail please?

Acurately explained above. I understand the proccess, was just wondering if ones quoted new annual pension can vary drastically with timing/market conditions/CETVs. It doesn't really matter, I'll either like the quote and go ahead, or i wont. I'd rather make the transfer though, and it'll be months before i receive quotes so just curioius in the meantime.

Interest rates are higher than a few years ago so CETVs will have fallen. Before doing any transfer I would think holistically about your potential retirement income streams and certainly don't base any transfer on a perceived loss of "value" due to falling CETVs.