Ask a question
- All questions (1068)
- Business planning (58)
- Community Engagement (100)
- Computers & Communications (133)
- Employment Issues (125)
- Finance Management (31)
- Grant Funding (301)
- Legal Issues (200)
- Rural Services (49)
- Board Recruitment (27)
- Project Planning (11)
All Experts OnlineFinal salary pension schemes
Answered 29 Feb 2008 by j.ditchfield
Question
Dear Sir/Madam, Is there a difference between a Civil Service Pension and a Pension Scheme run by a Local Authority. A colleague has left OFSTED (Civil Service) to join a LA and has received a standard letter about a 'Classic Scheme pension and Lump Sum' due to be paid when she is 60 (she is now 45 years old). It contains a line "You may, subject to conditions, transfer the cash value of your benefits to a new employers pansion scheme, or to a personal pension of your choice. If you choose either option you will have to transfer all your Civil Service benefits." Again I realise that bespoke advice will be required; but any help with any considerations, questions to ask etc. - indeed anything at all that you would consider useful would be grately appreciated.
The answer to this question has been made open as an example of the Experts Online service. For information on subscribing to Experts Online register your interest here
Answer
Thank you for your question regarding public sector pension schemes.
From my own experience of assisting clients in these two schemes I can confirm that they are different although just how different is another question. They are both state backed schemes; one at a local Government level and the other at a National Government level so are as close to a guaranteed pension as it is possible to get.
The clause you refer to in your questions actually refers to a transfers out of the scheme. As it is possible to take a lump sum transfer out of these schemes and move over into a money purchase "private" pension arrangement, or move across into another final salary scheme.
Some people do choose to consolidate final salary schemes if they believe the sponsoring employer is financially unsound, which is not really an issue here. Another reason might be administrative convenience if the pension is very small in size.
Considering the information you've provided it does not seem that a transfer would be beneficial.
John Ditchfield
- Login to post comments
TAGS:
Please note that Experts Online is designed to provide guidance in good faith at the stated date, but without accepting liability. In individual circumstances it may be necessary to seek professional advice.
Experts Online - a service of Networks Online
This attribution must not be removed.
© Networks Online 2009
Expert profile
Mini biog
John Ditchfield worked in Credit Union development for five years before taking the (CII) Chartered Institute of Insurers, Financial Planning exams and qualifying as an Independent Financial Advisor (IFA).