Swap final salary pension for SIPP?

TRUSt_NO_1_2

Retired I.F.A.
The transfer value is the current value of your final salary scheme as calculated by an actuary. Compound that by x% p/a until normal retirement date then look to buy the same annuity as the scheme offers and it will be very similar.
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No it is not similar .Not even near, unless x% is wildly optimistic.
I had already done an approx transfer value of my F.S. pension, based on current equity rates. I had also previously 'cashed in' and transferred a 'with profits' pension to a SIPP and was given a vastly better offer than my F.S pension
I know the transfer value I have been offered is ridiculously undervalued as the scheme is trying to claw back some of it deficits through my transfer out.

I am basically saying I, and anybody else, should be offered market value ,not the scheme actuaries independent calculation ,which in my case has been deliberately reduced because the scheme is in serious deficit.
My reasoning is detailed in the article by The Actuary profession:
http://www.actuaries.org.uk/files/pdf/pensions/briefingnote_transfervalues200603.pdf

Retired_I.F.A.

My apologies, you know what your doing.

The problem as you point out is actuaries are working for the FS sceme not independently thus the TV is often manipulated to benefit the employer.
As my Avtar would say: "Arselicking the boss."

I imagine in todays climate that manipulation is far more commonplace than it was in my day. I rarely accepted the TV first offered and pushed for a recalculation as did many IFA's, sometimes obtaining more sometimes not.
If however the actuaries were independent and regulated to the degee the IFA's are there would be little need for a TVA. All would get 'market value'. Regulatory bodies dont see it like that though and regulate the self employed commission greedy salesman instead of the old school tie on £200,000 yr. By the time they get it right though final salary schemes will be long gone.

DennisRevell

Thanks EdInvestor & TRUSt_NO_1

Esp. the QROPS/HMRC (tax) website stuff from EdInvestor.

Basking

I have been resident Isle of Man, and stupidly kept my Equitable fund in place, until maturity age 60...now I have it transferred to a QROPS here through a great local company of actuaries Boal & Co.
But the key to all this ...don't I know...is the annual returns ...and that's where things have finally taken a turn for the better for me.
I took the bravest ( or foolish?)decision of my life and put my funds with an options specialist who places very carefully fully hedged FTSE Index options for me ...Its a technical high risk strategy ..but I figured these times call for extraordinary responses...so I checked his maths going back 13 years..and so far so good ....my pension pot is up 60% in just less than 6 months, and close to recovering all my Equitable losses ....the man is a calm, mature ex Liffe floor trader .....with 20 years experience trading this stuff..and he steared my funds through the worst volatility ever seen in the index...boy am I grateful I found him..only snag ..He only handles a limited number of £250k+ clients...ie those who can afford to play these higher risk strategies. I know it has risks attached ..but I can see every month the max exposure to a wrong decision as the hedging strategies kick in .....and the nice thing is ..he doesn't overtrade. Anyway it works for me ...and the key to all this pension stuff is securing a reliable return on your funds ...it will cover any mistakes you make over annual charges and scheme managers.