Deferred DB Pension

Ellejayemm

I am being made redundant (statutory) on 31st May after 36 years service. I have a deferred DB pension (2011) and another pension with a pot of £60,000. Both pensions can be accessed in August this year when I am 63. I have poor health and no financial dependents, 1 adult daughter, and I am divorced (ex is deceased).

I believe the DB pension will cease if I die.

I recently had an advice meeting through unbiased and the advisor said to access a CETV for the DB pension I would need to pay up to £10K with no guarantee of a transfer.

I would like to get value for this pension and be able to leave it to my daughter.

Any suggestions appreciated

flaneurs_lobster

If your ill-health is actually a diagnosis of a terminal illness then there MAY be a mechanism to release funds from your DB scheme, but it is dependent on the specific rules of the scheme.

Otherwise, as your advisor states, the options for transfer are subject to stringent rules and considerable expense.

Ellejayemm

I have not had a terminal illness diagnosis, I have severe COPD and Rheumatoid Arthritis. I will be 63 soon

Marcon

I recently had an advice meeting through unbiased and the advisor said to access a CETV for the DB pension I would need to pay up to £10K with no guarantee of a transfer.

You can certainly ask for a CETV from the scheme. Whether they are willing to provide one is another matter - there is no statutory entitlement to transfer out of a DB scheme once you are within a year of reaching the scheme's Normal Retirement Date, which from your question I assume is (?) 63. It's still worth asking - many schemes will allow transfers if the member hasn't actually started to draw their pension. The only way to find out is to ask.

If the DB pension has a CETV of £30K+ there is a mandatory requirement for you to received regulated advice before the DB scheme could release the transfer. That advice is currently likely to cost upwards of £5K. If the advice is to stay put, you can ignore it if you wish. Few providers would accept your transfer without positive advice, but a stakeholder pension has to (because the law says it must accept all transfers from registered UK pension schemes). You can open one for yourself and then arrange the transfer yourself.

xylophone

I have a deferred DB pension (2011)

Is it by any chance from an unfunded public service scheme?