Pension transfer questions

[kevbo]

I am looking into transferring my RM Defined Contribution Plan and possibly my RM Defined Benefit Cash Balance scheme into my new employers defined benefit scheme. I have a transfer value for both but I was under the impression the Defined Benefit Cash Balance scheme would be paid as an annual amount. I requested a projected benefit valuation at retirement age for the DBCB scheme but I have been advised by the service centre that this is not possible and it is paid as a lump sum. Is this correct?

Also is there anything else I need to consider before making a transfer. It was mainly the DBCBS that I had doubts about but if it is only paid as a cash lump sum anyway I think it makes sense to transfer into a defined benefit scheme. Obviously I will take financial advice but just need to get all the information required first.

[Jaggs]

Are you sure it is transfering into a defined benefit scheme? It does sound a bit unusual that they would accept transfers from DC schemes into it or are the transfers effectively buying you extra years in the DB scheme?

[RobertT]

I am looking into transferring my RM Defined Contribution Plan and possibly my RM Defined Benefit Cash Balance scheme into my new employers defined benefit scheme. I have a transfer value for both but I was under the impression the Defined Benefit Cash Balance scheme would be paid as an annual amount. I requested a projected benefit valuation at retirement age for the DBCB scheme but I have been advised by the service centre that this is not possible and it is paid as a lump sum. Is this correct?

It sounds as if you're in section F of the RMPP?
Which would probably mean you joined RM sometime after 1st April 2008, you paid into the RMDCP for at least 4 years(or is it 5?) and then decided to join the DBCBS when given that opportunity?

As I understand it, section F members can either have the DBCBS paid out as a lump sum, with the first 25% being tax free. Or I think there is also the option for it to be transferred into another pension scheme.

Also is there anything else I need to consider before making a transfer. It was mainly the DBCBS that I had doubts about but if it is only paid as a cash lump sum anyway I think it makes sense to transfer into a defined benefit scheme. Obviously I will take financial advice but just need to get all the information required first.

Ultimately you need to work out whether it's better to have a cash sum, or an income for life, which I assume you'll get by transferring to a DB scheme.

[kevbo]

Yes that's right thanks. Now just waiting to get all info I need back for comparison. Cheers