Fire service to railway pension

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bwlv1
bwlv1 Posts: 316 Forumite
in Pensions, annuities & retirement planning
Good morning all,

I have just over 10 years in the fire service, so my pension is a mix of the 2006 and 2015 scheme.

I am considering a move into the railways, so a few questions and any advice greatly received.

Can I transfer my fire service pension to the railway pension scheme, this document released in 2015 explains the restrictions on transferring out and I am unsure if the railway scheme is any of those?

https://www.fbu.org.uk/sites/default/files/imce/documents/news/150120-AC-administrators-transfer-restrictions1.pdf

Also, if I can transfer, would my transfer value 'buy' more years service in the new scheme as the starting salary is quite a low lower than the qualified salary, or is there some sort of averaging to prevent this potential advantage?

Thank you

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I think you should ask the railways pension scheme what sort it is, and all the other questions about it, but seems to me that there's no harm at all in having a few different pensions, makes retirement somewhat safer overall, and gives you more choice.
  • bwlv1
    bwlv1 Posts: 316 Forumite
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    I have just sent them an email requesting some information.

    I can see your point regarding separate pensions, but should I do this my existing one will be deferred until age 67 which wouldn't be ideal.
  • greatkingrat
    greatkingrat Posts: 326 Forumite
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    What company would you be working for? Most railway companies don't accept transfers-in from non-railway schemes any more.

    See https://www.railwayspensions.co.uk/resources/forms/final-salary-member-forms/active-member/transfers-in-forms for a list
  • Silvertabby
    Silvertabby Posts: 9,061 Forumite
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    edited 20 August 2018 at 12:17PM
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    Briefly, you may only be able transfer out your fire service pension to another defined benefit (final salary or career average) pension fund.

    If your only option with railways is a defined contribution fund, then it won't be possible to transfer.

    Are you sure that your fire service pension would be deferred until 67? Don't you have the option of early payment subject to an actuarial reduction?

    ADD:

    Looks like railways are similar to the Civil Service scheme - ie, you have a choice of joining the scheme as either db or dc. However, even if you go for the db option, there are limitations on transfers in. You should get the full details once railways respond to your e-mail.
  • bwlv1
    bwlv1 Posts: 316 Forumite
    edited 20 August 2018 at 1:56PM
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    Thank you both,

    The company I intend to work for are not on that list which is disappointing.

    I have just looked into the fire pension and you can actually take early retirement on the deferred pension from 55 with the reduction, which is better than 67 but would have preferred to have taken it all over into a final salary scheme.
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