Pension PCLS

[Jockman]

Ginge R said:

chip* said:

Hi Al,

DB = private pension with a Swiss bank. [probably a blur given your multiple client visits, but you kindly came over for a pension assessment last year and offered lots of useful advice to me].

You rightly mention "estate planning" which is one of a few reasons for raiding the 25% TFC from my DB pension, as I had one eye on the inheritance opportunity with our personal SIPP pensions. Luckily we are in a fortunate financial position for our retirement days, but I would still need to weigh up the benefits/numbers to see which best suit our retirement days.

Tom

Tom,

It has been a hard day in the hammock, I do remember, yes.. . I hope you found it useful, and it's always nice to drop in for a PH cuppa. As I remember, I suggested you check out the trustee reports/position and the funding valuations?! Events since, have shown how frail our DB system is. The first thing I'd suggest is get a transfer value. For most people, leaving a DB pension is sacrilege but that default position is not as cast iron as it was before. Still got the Porsche?

Ginge doesn't this sort of process now legally require proper financial advise before considering changing a DB scheme?

[sidicks]

Ozzie Osmond said:

Pensions Advisory Service

http://www.pensionsadvisoryservice.org.uk/about-pe...

Ok, I'll have a chat to my pension colleagues tomorrow to understand that better.

Given that this only applies to post 1997 pensions I could argue that the majority of people retiring at the moment on a DB scheme would still be on (predominantly) flat pensions, given that it was around this time that private sector DB schemes were starting to be withdrawn...

(That might be covering up my initial error though!).

[Ginge R]

Jockman said:

Ginge doesn't this sort of process now legally require proper financial advise before considering changing a DB scheme?

You bet, but only where the transfer sum is over £30,000. Fair to say, Tom's is.

In this age of scamming, the role of the trustee is coming under much closer scrutiny now (thankfully), when dealing with all transfers (bearing in mind pensions are written in trust). Although relating to a DC scheme, Royal London went to court a few months back to try and stop such a spurious transfer, and was knocked back.

Edit:

High Court ruling against RL; http://citywire.co.uk/new-model-adviser/news/royal...

Chapter and verse on DB -> DC pension transfers; http://www.thepensionsregulator.gov.uk/docs/db-dc-...

Edited by Ginge R on Monday 4th July 07:38

[Jockman]

Ginge R said:

Jockman said:

Ginge doesn't this sort of process now legally require proper financial advise before considering changing a DB scheme?

You bet, but only where the transfer sum is over £30,000. Fair to say, Tom's is.

In this age of scamming, the role of the trustee is coming under much closer scrutiny now (thankfully), when dealing with all transfers (bearing in mind pensions are written in trust). Although relating to a DC scheme, Royal London went to court a few months back to try and stop such a spurious transfer, and was knocked back.

Edit:

High Court ruling against RL; http://citywire.co.uk/new-model-adviser/news/royal...

Chapter and verse on DB -> DC pension transfers; http://www.thepensionsregulator.gov.uk/docs/db-dc-...

Edited by Ginge R on Monday 4th July 07:38

Cheers Ginge - interesting that she was transferring into a SSAS. Wonder if it was an existing one or a newly-established one based on the 'cold call'?

The guidance book is useful and >surprisingly< an easy read !!!

[Ginge R]

The SSAS (Babbacombe Road 1973 Limited) was only established a few weeks before. The lady in question (a teacher) had been appointed as the sole employee. RL published its thoughts shortly afterwards.

http://adviser.royallondon.com/news/pensions/2016/...

[Jockman]

Ginge R said:

The SSAS (Babbacombe Road 1973 Limited) was only established a few weeks before. The lady in question (a teacher) had been appointed as the sole employee. RL published its thoughts shortly afterwards.

http://adviser.royallondon.com/news/pensions/2016/...

They were right to question it.

[Ginge R]

Yup.

[Ginge R]

Update on matters arising out of the Royal London case.

https://www.moneymarketing.co.uk/pension-ombudsman...

[PurpleMoonlight]

Hmmmm.

I have found the Ombudsman's representatives knowledge pretty poor at the initial stages of an investigation and it's only when you get higher up the food chain by not being fobbed off that you deal with people that know what they are doing.

Interestingly I have recently received a demand from Phoenix Life of proof of earned income from any employer for a SSAS member wishing to transfer their £2000 personal pension to the SSAS. Seems other insures are taking note of the High Court decision.

[Red Devil]

Ginge R said:

The SSAS (Babbacombe Road 1973 Limited) was only established a few weeks before. The lady in question (a teacher) had been appointed as the sole employee. RL published its thoughts shortly afterwards.

http://adviser.royallondon.com/news/pensions/2016/...

Why am I not surprised that Cape Verde property investments were involved?
http://www.actionfraud.police.uk/news/cape-verde-p...

BBC Panorama covered this exact issue a couple of weeks ago.
http://www.bbc.co.uk/iplayer/episode/b07kxp7g/pano...

This confirms that Ms Hughes was contacted by that very same company.
https://www.pensions-ombudsman.org.uk/wp-content/u... - page 14 paragraph 49
The Ombudsman's determination makes very interesting reading.
I don't think the High Court has done the public any favours in overturning it.

Let's hope Ms Hughes doesn't come to regret her decision to get into that particular bed.