Can you use a CETV from an old pension to buy additional pension...

FIRSTTIMER
FIRSTTIMER Posts: 637 Forumite
in Pensions, annuities & retirement planning
In either the TPS/UPSS Schemes, if you’ve missed the boat of transferring in with 12 months of joining these schemes? Could the CETV purchase additonal pension instead.
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  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Anyone any advice on this? As I!!!8217;ve missed the cut off date to transfer in - can I buy additional pension instead and use the small amount left over and put it into a SIPP? Is this within the rules?
  • Dox
    Dox Posts: 3,116 Forumite
    First Anniversary Name Dropper First Post
    Your question isn't clear. Perhaps ask the administrators of TPS/UPSS - give them a ring and you can then explain what you mean.
  • LHW99
    LHW99 Posts: 4,211 Forumite
    First Anniversary Name Dropper First Post
    What exactly do you mean to do? Have you already transferred the old FS CETV to some DC scheme? or are you wanting to transfer directly out of the FS?
    If the former, you wouldn't be able to take anything out as cash before age 55, and after that if you took more than the TFLS you would be restricted to £4k gross pension contribution going forward.
    If the latter, presumably its the same situation as "transfer in to the TPS"
    (not that I'm any expert)
  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Basically,

    You can only transfer in an old pension into a government pension within the first 12 months of service - as I’ve missed that. Can i use the transfer value to purchase one of the flexibility’s instead such as buying additional pension?

    Thanks.
  • Asghar
    Asghar Posts: 433 Forumite
    Name Dropper First Post First Anniversary
    FIRSTTIMER wrote: »
    Basically,
    You can only transfer in an old pension into a government pension within the first 12 months of service - as I’ve missed that. Can i use the transfer value to purchase one of the flexibility’s instead such as buying additional pension?
    Thanks.

    What government pension?
    The only government pension is the state pension and you cannot transfer into it. It is a benefit which you receive when you retire and the amount paid depends on the number of qualifying years of National Insurance contributions you have made.
  • Dox
    Dox Posts: 3,116 Forumite
    First Anniversary Name Dropper First Post
    FIRSTTIMER wrote: »
    Basically,

    You can only transfer in an old pension into a government pension within the first 12 months of service - as I’ve missed that. Can i use the transfer value to purchase one of the flexibility’s instead such as buying additional pension?

    Thanks.

    You can transfer a CETV to any registered pension scheme (including a SIPP, which will give you flexibility in terms of how you draw the benefits) which will accept it.

    If the CETV is £30,000 of more, the trustees of your old scheme will need proof that you have received (although not necessarily followed) advice from a properly qualified and regulated individual.
  • LHW99
    LHW99 Posts: 4,211 Forumite
    First Anniversary Name Dropper First Post
    And as Dox said:
    Perhaps ask the administrators of TPS/UPSS - give them a ring and you can then explain what you mean.
    It would be up to the receiving scheme whether they would accept it, and you would presumably need to make it clear that you are not talking about the main scheme, but one of the other options.
  • xylophone
    xylophone Posts: 44,375 Forumite
    Name Dropper First Anniversary First Post
    https://forums.moneysavingexpert.com/showthread.php?p=74621421#post74621421

    Post 9 - assuming this is the same pension, you had been advised to leave it deferred in the old scheme?
  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Thanks for all this. Another advisor looked at it and said that i could potentially buy additional pension instead which is more worthwhile as TPS/USS quote is locked at todays prices. Value of 42k lump sum for their maximum £6750 additional pension allowance, which is two thirds of my CETV and put the rest in a SIPP.

    My question is that is this allowed under HMRC/Tax/Recycling laws - TPS say you pay for additional pension however you like, but I am thinking this is a loophole which isn’t permitted?
  • xylophone
    xylophone Posts: 44,375 Forumite
    Name Dropper First Anniversary First Post
    A pension transfer is not pension recycling.

    Have you checked with TPS that you can transfer in to Additional Pension?

    What would be the position with regard to the advice requirement for the transfer out of the deferred DB scheme?

    Would the administrators of the DB Scheme be prepared to transfer to two schemes?
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