Defined Benefit Pension

daveyjp

A DB pension is in effect an annuity.

Withdrawing funds from a DB scheme to invest in a DC scheme to then purchase a different annuity, which is unlikely to have such generous terms, doesn't make much sense.

xylophone

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

Circumstances in which advice is required

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an FCA authorised adviser before:

• converting safeguarded benefits into flexible benefits (or in the case of benefits which are both safeguarded and flexible, into different flexible benefits)

• using a transfer payment in respect of safeguarded benefits to acquire flexible benefits under another scheme 

1. To qualify as safeguarded benefits under the legislation, the pension benefits must include some form of guarantee about the rate of secure pension income to be provided. 

Pension benefits which represent, or include, a GMP are therefore safeguarded benefits.

https://techzone.aberdeenadviser.com/public/pensions/tech-guide-db-to-dc-transfers

The OP appears to have consulted a Financial Adviser (no details of qualifications) concerning this transfer, although if his safeguarded benefits are valued at under £30,000, he is not obliged to take advice and any ceding scheme is not obliged to seek confirmation that he has done so.

That said, no pension scheme (other than a stakeholder scheme), is obliged to accept a transfer in of another scheme and some may refuse acceptance of a DB where advice has not been obtained or indeed at all. 


Has the OP tried eg Hargreaves Lansdown or AJ Bell in respect of a sub £30,000 DB transfer?



With regard to trivial commutation

https://www.litrg.org.uk/pensions/pension-withdrawals/small-pensions

while this might be possible for the OP, he might not find this the optimum choice in respect of taxation.

dunstonh

The £30k rule doesn't apply to advisers.  They still have to have PTS permissions even if it's under £30k.

Providers can choose to accept them or not if it's under £30k.    Some schemes will.  Some will not.   There was a thread not too many months ago where someone with a trivial DB CETV got it transferred without advice but I cannot recall the provider.    So, it is possible.

hugheskevi

confusedpension said:

I have a Defined Benefit Pension which is less than £30k...I don't have any other pension 

Have you explored Trivial Commutation?