Partial DB Transfer
bombingalong
Member
Hi all,
Has anyone ever come across a partial DB transfer from the RBS Group Pension fund?
Client has built up pension benefits comprising of GMP, Pre 97 Excess and Post 97 Excess all with NRA 60. They also have Post 97 Excess with NRA 65. The same escalation and increases in payment apply to both parts of the Post 97 benefits. We have details of the early and late retirement factors.
The CETV values the GMP and Pre 97; however, it has combined the Post 97 Excess 60/65. We do not know the breakdown; however, we do know that the NRA 65 part is likely to have a lower actuarial calculation.
The theory is to retain enough benefits in the scheme to more than cover the client's expenditure in retirement, potentially transferring the rest. Based on the income needs and the transfer rules of the scheme, some of the Post 97 would remain to provide the guaranteed income.
I am wondering how we go about analysing this, bearing in mind we don't have the breakdown - even if this is provided in the first place.
Any ideas?
Thanks.
Comments
Last time I asked they didn't do partial transfers (late 2017).
I've only had one scheme say that they would and it was Santander SPI section. Any proportion of post 5/4/97 but either none or all of pre, and it must be greater than 40% of total transfer value, and remaining pension >£1,000 pa.
Not many out there who will.
You need that breakdown of benefits and we always ask for a full CETV and partial CETV pack (where the scheme offers it and could be in client's interest).
Thanks Suse1969 and Jona for your comments.
It is a recent development for the RBS scheme. Although the trustees haven't finalised the terms yet (as at 27th July), partial transfers are an option.
Depending on the type of benefits accrued, members can transfer:
In this particular case, a partial CETV needs to be actuarially calculated, something that the scheme will not pay for. So unless the client is willing to meet this, then we cannot advise.
I have to say that if the pension figures indicated that it would be worth investigating, we would pay for the calculation to be done. That's also down to the fact that our process is for the transfer advice to be invoiced whether or not they transfer, so either way the client is paying for it.