Pension transfer

[Chilster1976]

Hi Ive just received my phase 1 training dates for April 22 so I would thought I would ask a question about the military pension scheme, my question is I currently work for southern rail and Im in the railway pension scheme and was wondering if would be worth transferring over.

 

[Spearmint]

This is a question best answered by our resident Pensions expert, Vauxhall.

 

[Rugby-Jock-Lad]

Mate. You need to eventually see about Professional advice via indpendent bodies such as the Armed Forces Pension Society. Wait until after training and maybe after Phase 2 methinks and to new unit. Doubtful you would be able to transfer across as this sounds to me like a private pensions scheme from a company. The Armed Forces Pension Scheme (AFPS 15 for you more likely) will be non-contributory and come from the Government coffers so will be a separate entity entirely. If you transferred from Army/Navy (Police/Fire Service???) then your pension would be transferred across i,e. Government agencies. Again I stand to be corrected and this should not be taken as financial advice and I would speak to relevant people more in the know. Good luck in training and hope all goes well....Kind regards..RJL.

 

[Rugby-Jock-Lad]

As SPEARMINT has just said :-D!!

 

[Vauxhall]

Hi Chilster1976, Here’s September Pathfinder for you. It is aimed at people leaving the Armed Forces but the process outlined and the things to consider remain valid.

Just to be clear, it does not need to be a public sector scheme to be capable of being transferred.

 

[Vauxhall]

Just for completeness, there is a section in the attached about transfers.

 

[Chilster1976]

Thanks for all of your information , something I will definitely have to look into.

 

[bigjd]

I was debating about carrying over my Police pensions but I have decided against it. I believe the pension scheme is career average based so I don't believe you can buy yourself out anymore so to speak. If like me you are taking a pay cut and on a career average scheme this may well reduce the average in the long term. I'm personally keeping my Police and RAF pensions separate.

I may be wrong on this as I am no expert and I will be seeking expert advice when I join in January but that is my understanding!

 

[busby1971]

Bigjd CARE pensions tend to bank a salary value for each year of membership, so salary reductions don't normally impact on previous years entitlements.

Not sure about the police pension, however, other public CARE pensions appreciate differently if you are an active or non-active member, might be worth checking as there might be more value from transferring it into an active scheme.

I'd join the FPS if I were you and ask for some advice, as doing nothing could cost you or then again it could save you.

 

[Vauxhall]

Bigjd CARE pensions tend to bank a salary value for each year of membership, so salary reductions don't normally impact on previous years entitlements.

Not sure about the police pension, however, other public CARE pensions appreciate differently if you are an active or non-active member, might be worth checking as there might be more value from transferring it into an active scheme.

I'd join the FPS if I were you and ask for some advice, as doing nothing could cost you or then again it could save you.

Busby is right! Don't let the word 'averaging' lead you to think that previous years' values are massaged down!

Effectively, the pension earned in year is stored and added to any previous years' accrued pension, which will have been increased by whatever measure the scheme puts in place. Take a look at the booklet attached above as it has an example of how AFPS 15 works.

 

[bigjd]

It seems I was indeed completely misinformed! I will seek advice when I start and look at my options, it sounds like perhaps it may be beneficial if I bring my pension across after all.