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Teachers Pension CETV

  • polar
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10 Apr 12 #322672 by polar
Topic started by polar
Im not sure what this means exactly but it was posted on the TPS Teachers pensions website. I dont know if it applies to just teachers or may affect other Govt or pension schemes.

Quote:

HM Treasury has issued guidance on discount rates to be used in calculating Cash Equivalent Transfer Values (CETVs).

This guidance is now being considered by the DfE in conjunction with the Scheme Actuary.

Until such time as the Actuary is able to advise the effects of the revised guidance on factors in use for calculating CETVs, we have been instructed by the DfE to suspend calculation of CETVs with immediate effect.

Please note calculations for Pensions On Divorce are suspended until further notice.

Club transfers will continue for the present, as they are subject to different factors.

  • ian conlon actuary
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10 Apr 12 #322941 by ian conlon actuary
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This affected all public sector pension schemes. There was an embargo on CETVS and implementation of pension sharing orders for many of these schemes. New factors have now been produced and the schemes will be working through their backlogs. There are implications in terms of the value of CETVS will have gone down in some cases and gone up in other cases.
Ian

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11 Apr 12 #323091 by teecher
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Just browsing the site and clicked on this. Why are Pension sites written so badly!:angry:
I have just queried the costs for pension sharing for Teachers- my ex and I have to pay £550 EACH to implement the pension sharing.(a whopping £1,000 +!!)
I think its''s absolutely scandalous, the provider reluctantly provided a financial breakdown when I insisted but no way do the sums realistically add up- my theory is that they think of a number and multiply it- so secure in the language of gobbledegook that no-one will dare question the figures, in case of being accused of being stupid for not understanding the document.
What an an Absolute rip-off!!

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12 Apr 12 #323177 by The Divorce IFA
Reply from The Divorce IFA
Hi,

Yes the costs of implementing can be an unexpected shock and not something that in my experience is often discussed during negotiations.

The National Association of Pension Funds publishes guidance on the charges should levy. You can find it here - www.napf.co.uk/PolicyandResearch/Documen...F_guidance_0711.ashx

Each scheme can choose what to charge. To be fair there is work for the adminstrator and the actuary in the scheme to work out the transfer value and admininster the internal or external transfer.

Whether at the end of a costly divorce process this work is valued is another thing.

Phil

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12 Apr 12 #323181 by dukey
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Final salary pensions do seem to cost around £1000+ some quite a bit more, the most expensive ive seen on wiki was over 2k.

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12 Apr 12 #323193 by polar
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I can never see what the problem is.
Pensions have a pot and that pot should be split 50/50 or whatever is decided.. A value of most private pension pots is issued once a year.
Any contributiona after that are each persons responsibility.
Pensions are a bit of a gamble anyway especially private ones because they rely on unknown investment figures. For schemes like final salary what the future brings for salary increases and inflation are anyones guess.Add to that the pension holder could live 1 or 40 years after retirement.
Just how can anyone guess what all these variables will do . If they can guess they should be running the country and tell me if its worth saving my money or spending it fast before I die.

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17 Apr 12 #324529 by ian conlon actuary
Reply from ian conlon actuary
Polar, sorry to shatter your illusion, within defined benefit schemes there is no individual pot. Indeed within the public sector schemes there is no pot at all just future tax payers funds to meet an undertaking to pay a specified amount of pension.
For defined benefit schemes, the member ha an entitlement to an amount of pension from a specified date in the future. This is then converted to a notional value now (the CETV), as a pension scheme member continues to complete service so the amount of pension at retirement increases (also as a result of salary increases).
In relation to all of the variables, you are correct that no one knows, in determining the assumptions to use, advice is provided on each of these factors but at the end of the day it''s an estimate not an Absolute value.
Ian

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