transferring rm pension to another company

[themaze]

What are the options for transferring 30 years worth of rm pension into a different employers scheme ?

With rm finance looking a bit shaky how safe are there pensions ?

Is there a option for just take the rm pension and just invest it into a sipp ?

[RobertT]

1. The RMSPS(up to 2012) is paid for by the government/taxpayer. As of it's latest valuation, it has specific liabilities of about £51 Billion, which sounds a lot, but makes up only about 2% of the governments overall public sector pension liabilities.

It can only be transferred into another DB pension scheme, so that's one that offers final or career average benefits. Those type of schemes are like hens teeth, particularly for new entrants!

2. The RMPP pension(2012-2018) is managed by the scheme trustees and as of the last valuation, was in surplus. Which means there's more in the pot than there needs to be to pay all our benefits.

RM would be liable for any shortfall if that surplus turned into a deficit. But if the company were to become insolvent, the Pension Protection Fund would step in, which is also in surplus.

3. The RMPP DBCBS(2018-present) does show on the company balance sheet, but again, the PPF would pick up the slack if the worst happened.

The RMPP pension can be transferred out to either DB or DC schemes. DC would obviously mean giving up a guaranteed index linked(capped at 5%) income for life.
I assume the DBCBS can only be transferred to DC.

Each to their own, but personally, I see no logical reason to transfer out on the basis of the companies finances.

[themaze]

Thanks for replying and clarifying that .