Transfer moderate pot into Civil Service Pension

ShimalayaFlimflam

I’m 50 and recently joined the Civil Service in a £15k part time role. I’ve been enrolled into the Alpha Pension Scheme. 

Should I keep my SIPP separate (current value £220k) or transfer it into the CS scheme? My new pension contributions will be relatively low (see wage).

thanks

Kynthia

You've got 12 months from starting employment to transfer in. So apply for a quote and see what it buys you. Then you can decide whether you want the guaranteed, inflation-proof income for life or a flexible pot that you can leave the balance as an inheritance. 

JoeCrystal

Worth getting a quote! Bear in mind there is actually a limit to how much pensions you can buy when transfering. It is 50% of your salary if I recall correctly. I might be wrong though!

ShimalayaFlimflam

If the transfer in value is set to a maximum of 50% of my current salary there would be no point in doing it. Is the 50% max detailed somewhere?

JoeCrystal

It was the case with nuvos (where it is 50 percent of your salary as additional pension, not value) but not sure about the current version. However it is still worth asking for quotes considering how generous the scheme is especially if you leave within two years.

ali_bear

Are you able to go half-n-half? Transfer in just a portion of your SIPP. 

ussdave

ShimalayaFlimflam said:

If the transfer in value is set to a maximum of 50% of my current salary there would be no point in doing it. Is the 50% max detailed somewhere?

There may still well be a point in doing it.  £7.5k inflation proofed income for life would be very expensive to buy elsewhere and could be a good safety net of income in addition to the state pension, other Alpha pension you earn and any remaining DC funds you have.

FIREDreamer

ShimalayaFlimflam said:

If the transfer in value is set to a maximum of 50% of my current salary there would be no point in doing it. Is the 50% max detailed somewhere?

I think it’s the benefit being purchased is capped at 50% of salary, not the transfer value itself.

ie you can buy £7,500 pension per annum for a transfer value of £100,000 (or whatever the cost they quote).

Your transfer value in isn’t capped at £7,500 which might buy a pension of £500 pa or whatever.

Dazed_and_C0nfused

ShimalayaFlimflam said:

If the transfer in value is set to a maximum of 50% of my current salary there would be no point in doing it. Is the 50% max detailed somewhere?

I don't think it means you have to part with the full £220k to get a limited amount.

If your maximum purchase value is say £20k of Alpha pension then you might have to transfer say £150k to Alpha.  The remaining £70k would be left in your SIPP.

NB.  Figures are examples, not in any way meant to be realistic!

squirrelpie

There's an explanation of the process to follow at https://www.civilservicepensionscheme.org.uk/joining-the-pension-scheme/transfer-an-old-pension-into-your-civil-service-pension/

As has been said, make an application and see how much you can buy. They will tell you if there are any limits.