Final Salary Scheme

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24

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  • Silvertabby
    Silvertabby Posts: 9,061 Forumite
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    edited 17 January 2018 at 4:57PM
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    HappyHarry wrote: »
    The trustees have a maximum of three months to set a guarantee date (i.e. the date at which the CETV is set) and they have a further ten days from that date to let you know the actual CETV.

    e.g. If you requested a CETV on 10th November, then they must prepare a CETV for no later than 10th February, and they then have to let you know that CETV by 20th February.

    Not if the pension is public sector (specifically LGPS, as this is only public sector pension that can still be transferred out). If it is LGPS, and they are awaiting new factors from GAD, then the 3 month rule doesn't apply.

    The LGPS I worked for would only supply really urgent CETVs (usually for divorce calculations) during the waiting period, and even these stressed that the transfer value wasn't guaranteed and could change once the new factors had been received.
  • HappyHarry
    HappyHarry Posts: 1,590 Forumite
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    Silvertabby wrote: »
    Not if the pension is public sector (specifically LGPS, as this is only public sector pension that can still be transferred out). If it is LGPS, and they are awaiting new factors from GAD, then the 3 month rule doesn't apply.

    Thanks, I wasn't aware of that!
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • Wolf52
    Wolf52 Posts: 31 Forumite
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    Thank you I wasn't aware of that either, HappyHarry and Silvertabby. Btw this one is not a public sector pension although I will have a NHS pension when the time comes.

    Nina
  • Wolf52
    Wolf52 Posts: 31 Forumite
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    I have finally received the various figures requested from Capita, as follows:

    Taking pension at 55 will give me a pension of £4328.98 with a 25% lump sum of £22231.49.

    Taking pension at 60 will give me a pension either a full pension of £5178.95 or a reduced pension of £3890.49 with a 25% lump sum of £25936.62.

    CETV has been given as £177615.42.

    The CETV does look appealing especially as I can use 25% to reduce mortgage (poor credit rating due to hubby's health means I cannot look for a more cost effective mortgage at present) which will be very useful, leaving about £134k pot.

    Now off to find an IFA who deals with these things.

    Nina
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    Wolf52 wrote: »
    Taking pension at 55 will give me a pension of £4328.98 with a 25% lump sum of £22231.49.

    CETV has been given as £177615.42.

    What are the terms on the inflation-protection offered by the pension? If they are excellent, e.g. full RPI linking, think carefully before you give them up. If they are miserable, e.g. CPI capped at 2.5% p.a., you might incline more to be gung-ho about the transfer.
    Free the dunston one next time too.
  • xylophone
    xylophone Posts: 44,548 Forumite
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    Now off to find an IFA who deals with these things

    Post 6
    http://forums.moneysavingexpert.com/showthread.php?t=5760567

    Be careful - you say that you will need to work for another 20 years for that NHS pension but you also say that you have health problems of your own. They might be severe enough to make work difficult but not enough to secure an ill health pension.

    You mention £134,000; it looks like a large sum but it is only around five times average annual earnings?

    https://www.royallondon.com/Global/documents/GoodWithYourMoney/COMPANY-PENSIONS-FIVE-REASONS-TO-TRANSFER-OUT-AND-FIVE-REASONS-NOT-TO.pdf
  • Wolf52
    Wolf52 Posts: 31 Forumite
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    thank you both, food for thought. Incidentally I noticed my letter was dated 19/2, but not received until today 15/3 ... giving me only 8 weeks to sort what I want to do!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Wolf52 wrote: »
    Taking pension at 55 will give me a pension of £4328.98 with a 25% lump sum of £22231.49.

    Taking pension at 60 will give me a pension of £3890.49 with a 25% lump sum of £25936.62.

    Why the disparity?
  • Wolf52
    Wolf52 Posts: 31 Forumite
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    Thrugelmir wrote: »
    Why the disparity?

    I've no idea, just what it says in the letters.
  • sandsy
    sandsy Posts: 1,720 Forumite
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    Wolf52 wrote: »
    I've no idea, just what it says in the letters.

    The numbers look wrong. You’d expect the pension at 60 to be higher than the pension at 55.
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