Since April 2015 you have greater choice and flexibility in how you access your pension savings at retirement.
As an alternative to taking your pension and cash lump sum directly from the DB Section you can choose from a range of new options, if you transfer out your benefits to one or more alternative providers.
With the transferred-out benefit, you can choose to:
- Provide a flexible retirement income ('flexi-access drawdown')
- Take your pension as cash in stages
- Take your whole pot as cash in one go
- Buy a guaranteed income for life (annuity)
- Any combination of the options
Different providers offer different options, which have different features, rates of payment, charges and tax implications.
For more information on these options you should read the My pension – My choices. Please also read the section below about getting advice.
Transferring my benefits
How your transfer value is calculated
Your DB Section benefits
A monetary value is placed on the pension benefits that you have built up - broadly the amount of money that the Scheme would need to invest today in order to pay your benefits from the DB Section when they become due.
The total cost of providing your benefits is based on a number of assumptions about the future. Therefore, transfer values can go up and down depending on market conditions and the terms are kept under regular review by the Trustee.
Getting advice
The Trustee always recommends that you take independent financial advice before transferring your benefits.
If your DB benefits transfer value is more than £30,000, by law the Trustee must check that you have obtained independent financial advice from an adviser (appropriately qualified), before the transfer value can be paid (unless transferring to another DB scheme).
You'll need to find an adviser who can assist you and agree how much the advice is going to cost you. Completing this advice process can take some time and you should allow for this in your retirement planning. You can visit the Money Advice Service's directory or Unbiased to find one in your local area.
How do I transfer my benefits?
If you want to transfer
Either you or your adviser must submit a formal request for a transfer value to Equiniti. The transfer value of your DB Section benefits will be calculated and guaranteed for three months. Confirmation from your adviser that the advice process is complete must be provided, in the correct format, within three months of the quote, together with the completed forms provided by Equiniti.
After transfer
Once you've transferred your benefits from the Scheme to another pension arrangement, the benefits you’ll receive at retirement will depend on the options you take within your new arrangement. You, and your dependants, will no longer be entitled to any benefits from the DB Section.