Crazyface
Tour Winner
So how does it then drop £50K? (the first value was £140K). What has changed in the "calculation"?
Retirement
- Thread starter Crazyface
- Start date
So how does it then drop £50K? (the first value was £140K). What has changed in the "calculation"?
SwingsitlikeHogan
Major Champion
Part of it may be that your DBP provider's need to have your DBP off their books may have lessened significantly for factors specifically business-related and nothing to do with the state of the markets - and so the factor they apply to incentive a pensioner to move will drop - they don't feel the need to offer you the same CETV (Cash Equivalent Transfer Value) as before. In my case my DBP provider was keen to reduce the amount they had to 'ring-fence' for pensioners and so were keen to incentivize me to leave - and so offered my a decent factor. Even then with a decent CETV it was touch and go whether my Drawdown pension provider would be able to accept the CETV.
The Fader
Newbie
As SILH says above - it's all about the individual pension scheme's position. As daft as it sounds when I moved my DBP's into Drawdown
I was "lucky" that 2 of my schemes were considered underfunded at the time of request. As such they were keen to shift me on and crystallize their liability and
offered very attractive CETV's. The 2 better funded schemes offered fair but less attractive CETV's.
And in the 4 months from getting the initial indicative quotes (which I and my FA were happy with) to the actual transfers, one underfunded scheme paid £46k higher
than the quote, 2 (the better funded schemes) paid the originally quoted amount to the penny and the other underfunded one paid £5k less. Same market conditions - clearly different circumstances for each scheme.
Perhaps in your wife's case the company has addressed a shortfall in funding or maybe moved other people out and therefore the scheme administrators or their
actuarial advisor have a lesser need to incentivise any further transfers out at this point?
