Cash Balance Scheme 2018

[Tashaw]

I have recently left RM after 37 years - I don’t intend to take my pension until I’m 60 (I am now 57) but was wondering if I could transfer the cash balance part only (2018 scheme) out to another fund and use that alongside my AVCs to help finance myself before taking all the rest when I’m 60.

Does anyone know if this is possible ??

[RobertT]

Yes, I believe you can transfer out your DBCBS pot, although you might like to contact the Pension Service Centre in Sheffield for clarification. Contact details are on the RMPP website.

Bear in mind that any transfer out of DBCBS and/or AVC's(Bonusplan/Flexiplan) will have to be to another pension scheme, such as a personal pension.
Normal DC pension rules will then apply when you access that money.

In basic terms, that means the first 25% will be tax free and the remainder will count as income and come under PAYE in the same way as you'd expect wages to.

More DC pension info is here: https://www.moneyhelper.org.uk/en/pensi ... on-schemes

[Tashaw]

Thanks for your sound advice

[Trumanity]

Thanks for your sound advice

The pensions service centre will not allow you to do this unless you engage a financial advisor who is company pension authorised to advise on and carry out the transfer. You will have to pay for this advice.

[RobertT]

When transferring a Defined Benefit(DB) pension to a Defined Contribution(DC) pension, financial advice will be needed if the value is more than £30,000.

As the OP just wants to transfer the DBCBS, then that limit may not have been hit.
The DBCBS is defined benefit!

I suggested getting clarification to make sure that:

a. transfers can actually be made; and
b. whether there's any hoops to jump through.

Bonusplan and Flexiplan are DC pensions and any transfer would also be to a DC pension, so no advice is required regardless of value. Although some people may benefit from it.

This is what the RMPP website says on the subject of transfers: https://www.royalmailpensionplan.co.uk/ ... rring-out/

[Trumanity]

When transferring a Defined Benefit(DB) pension to a Defined Contribution(DC) pension, financial advice will be needed if the value is more than £30,000.

As the OP just wants to transfer the DBCBS, then that limit may not have been hit.
The DBCBS is defined benefit!

I suggested getting clarification to make sure that:

a. transfers can actually be made; and
b. whether there's any hoops to jump through.

Bonusplan and Flexiplan are DC pensions and any transfer would also be to a DC pension, so no advice is required regardless of value. Although some people may benefit from it.

This is what the RMPP website says on the subject of transfers: https://www.royalmailpensionplan.co.uk/ ... rring-out/

There can also be complications from the scheme you are transferring to, such as a SIPP provider, who may not recognise the £30K ceiling and still require a regulated adviser because of the defined benefit nature of the DBCBS.

[derricksmyth]

I have recently left RM after 37 years - I don’t intend to take my pension until I’m 60 (I am now 57) but was wondering if I could transfer the cash balance part only (2018 scheme) out to another fund and use that alongside my AVCs to help finance myself before taking all the rest when I’m 60.

Does anyone know if this is possible ??

Can you still be working for Royal Mail and do this?

[RobertT]

There can also be complications from the scheme you are transferring to, such as a SIPP provider, who may not recognise the £30K ceiling and still require a regulated adviser because of the defined benefit nature of the DBCBS.

That is possible, therefore it would be up to the individual to do their homework and ensure their choice of SIPP provider did recognise the £30k limit.

[RobertT]

I have recently left RM after 37 years - I don’t intend to take my pension until I’m 60 (I am now 57) but was wondering if I could transfer the cash balance part only (2018 scheme) out to another fund and use that alongside my AVCs to help finance myself before taking all the rest when I’m 60.

Does anyone know if this is possible ??

Can you still be working for Royal Mail and do this?

You can, but you will cease to be an active member of the RMPP at the same time. In which case no more contributions into the DBCBS will be allowed.

Probably best to wait until CDC starts and then consider a transfer.

[derricksmyth]

Cheers Robert!