Defined Benefit pension transfer advice

bunman1

I have a Defined Benefit Cash Balance Scheme pension with a transfer value of c.£70k. I would like to transfer this to an existing SIPP. In order to do so, I need a suitably qualified advisor who can sign a Pension Transfer Advice Declaration for me.

All of the advisors that I have approached either aren't suitable qualified or want to charge me £2.5k-£3k. I appreciate that they are required to go through a full analysis and produce written advice but I am certain about what I want to do and this is not a final salary pension. Does anyone know if there are advisors out there who would do this for a fixed fee of around £500?

Thanks in advance for suggestions

Smudgeismydog

I’m sorry but it’s very unlikely (impossible), for you to achieve this. It’s deemed a high risk area, and suitable qualified advisers are not going to simply sign it off, purely because you have made your mind up it’s what you want to do.

QrizB

Does anyone know if there are advisors out there who would do this for a fixed fee of around £500?

You won't find one at that price.

£3k is cheap.

flaneurs_lobster

 ….this is not a final salary pension

Are you sure?

A “cash balance” scheme is 

a form of DB pension arrangement where the defined benefit is a lump sum expressed as a formula linked to the member's final pensionable salary

.

says Sackers https://www.sackers.com/pension/cash-balance-schemes/#:~:text=A%20%E2%80%9Ccash%20balance%E2%80%9D%20scheme%20is,and%20his%20or%20her%20dependants.

Marcon

I have a Defined Benefit Cash Balance Scheme pension with a transfer value of c.£70k. I would like to transfer this to an existing SIPP. In order to do so, I need a suitably qualified advisor who can sign a Pension Transfer Advice Declaration for me.

A cash balance scheme is not classed as having 'safeguarded benefits' so advice isn't mandatory, whatever the transfer value.

Safeguarded benefits are defined as benefits that are not money purchase or cash balance benefits.

squirrelpie

Err but equally https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm023500 says it's a money purchase scheme 😈

DRS1

I wonder who told the OP that advice was needed? If it was the paying scheme maybe they know something about the scheme's benefit structure that we don't. If it was the receiving scheme maybe they heard the OP say defined benefit and went from there.

HappyHarry

OP, would you be able to name the ceding scheme - and section if applicable?

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81919971#Comment_81919971

Advisers don't have to sign off a DB transfer (although in this case it's exempt from the requirement to seek mandatory advice) - the member simply has to demonstrate to the ceding (paying) scheme that they have received advice, not that they've followed it. If an adviser with the necessary permissions has given advice, they must sign the relevant certificate to confirm they've done so.

The problem comes when trying to find a scheme which will accept a DB transfer against advice, but that's solved by opening a stakeholder pension (at least two are open to new retail clients who can open one for themselves). Stakeholder pensions have to accept all transfers from UK registered pension schemes. Advice is still required if the transfer is £30K+, because the ceding scheme can't release the transfer without confirmation the member has received advice.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81920089#Comment_81920089

Not many of these around - Diageo?

dunstonh

All of the advisors that I have approached either aren't suitable qualified or want to charge me £2.5k-£3k.

Only around 1 in 10 hold the required PTS authorisations, and that was before the CETVs fell significantly, and most firms pulled out from doing it.

However, if you have been quoted £2500-3000, then you should bite their hands off as that is dirt cheap if advice on a safeguarded benefit is required.

 appreciate that they are required to go through a full analysis and produce written advice but I am certain about what I want to do and this is not a final salary pension. 

Some Cash Balance plans can have no safeguarded benefits or attachment to the DB scheme. Others can.

Does anyone know if there are advisors out there who would do this for a fixed fee of around £500?

£500 for this type of work is unrealistic – even without safeguarded benefits you are looking at roughly seven or so hours of work.

Not many of these around - Diageo?

We see a lot of Lotus Cars cash balance cases. (no safeguarded benefits and free to move without a PTS)