PENSIONS AND ETV'S

[chimster]

Has anyone on here been through an 'enhanced transfer value' exercise as a trustee, and if so what are the pitfalls from the members perspective? Or has anyone been through the exercise in any capacity. I am on the board of trustees for my scheme and as this is a newish phenomenon I would be interested in any of your thoughts.

[youngsyr]

chimster said:

Has anyone on here been through an 'enhanced transfer value' exercise as a trustee, and if so what are the pitfalls from the members perspective? Or has anyone been through the exercise in any capacity. I am on the board of trustees for my scheme and as this is a newish phenomenon I would be interested in any of your thoughts.

If you're a trustee, then I would imagine you should really be seeking professional advice. Does the scheme not have an actuarial advisor?

[chimster]

youngsyr said:

chimster said:

Has anyone on here been through an 'enhanced transfer value' exercise as a trustee, and if so what are the pitfalls from the members perspective? Or has anyone been through the exercise in any capacity. I am on the board of trustees for my scheme and as this is a newish phenomenon I would be interested in any of your thoughts.

If you're a trustee, then I would imagine you should really be seeking professional advice. Does the scheme not have an actuarial advisor?

We will be, this could not replace that clearly,I was just looking for a little general background on top of the reading I am doing. Nothing more than that.

[JohnP68]

Presumably you've seen:

http://www.thepensionsregulator.gov.uk/guidance/gu...

or if you want to be more up-to-date:

http://www.thepensionsregulator.gov.uk/docs/transf...

[Andy Zarse]

If you had any sense you'd resign as a trustee immediately. If anything goes wrong with the scheme you're legally liable, and as such your house is at risk. I expect you already know that though?

[chimster]

Andy Zarse said:

If you had any sense you'd resign as a trustee immediately. If anything goes wrong with the scheme you're legally liable, and as such your house is at risk. I expect you already know that though?

We have insurance for that . Rules of the scheme to limit us to.

[chimster]

JohnP68 said:

Presumably you've seen:

http://www.thepensionsregulator.gov.uk/guidance/gu...

or if you want to be more up-to-date:

http://www.thepensionsregulator.gov.uk/docs/transf...

Yep, but thanks for that. I was wondering whether anyone had been through the process and had any thoughts they could share. Thanks though.

[Percy Flage]

ETVs are being very closely scrutinised by the regulator because THEY ARE BAD. Even when they are good THEY ARE BAD.

The perceived wisdom is that no member in their right mind would give up the guarantee implicit in a DB scheme in exchange for the risk associated with a cash sum. Why transfer the risk from your employer (or former employer) to yourself?

Sadly, its the usual one size fits all approach and nanny knows best attitude that is so prevalent in all thing FSA linked these days.