In my case -sharing a deferred final salary pension - there seemed to be no link at all between the
CETV and the pension based on final salary .
The
CETV calculated by the scheme was £325,000; the pension in 2014 was guaranteed to be £25,000 a year index-linked - we had a statement of preserved benefits saying so.
Outside the scheme the
CETV of £325,000 would only buy an annuity pension of £12,000 a year.I thought the idea of the transfer value was to give you enough cash to get the same pension income and benefits outside the final salary scheme. Green as grass.
I was offered scheme membership if I wanted it in letters and Form P - so no worries - whatever % I get will be that % of £25,000 at my age 60 in 2007 - won't it?
[No it won't]
When they got the
pension sharing Order the trustees told me I had to transfer out and halved the value of my pension.
Avoid the traps - don't agree to share until you know what the two new pensions would look like; for a
CETV valuation by someone objective or maybe even on your side I can't see any real alternative to an actuary - but having gone through it I would now be aware as spouse I do have rights to information on how the scheme would deal with my
pension share and what benefits I would get
it's not clear in the legislation or Form P what that means exactly - so I'd say as a minimum I'd want to know whether my share could stay in the scheme and if so how it would grow - when could I take the pension and how that pension would be calculated when the time came.
Be aware that the rules applying to ex-spouse pension credit members will more than likely be different from rules for members - regard it as an entirely different pension with rules you have to find out about