DBCBS transfer

[moyaspawn]

Hi all, just wanted to inform anyone interested that I have just completed the transfer of my
cash balance fund (value 34k) along with my remaining avc, to another pension provider for future
drawdown. No need for costly advice from an IFA, spoke a few times with Richard at rmpp helpline
and he assured me regarding this, I found him very helpful and knowledgable. Took about three
months to complete, hope this info might be of some use.
cheers.

[mark.cup]

That’s odd I was told I needed a financial advisor to sign this off as it was over 30k

[RobertT]

I have noticed the information on the RMPP website has changed fairly recently.
It previously said, if your benefits are over £30k you need regulated advice to transfer. But it no longer says that – just that you can transfer.

I have tried to do a bit of homework on Cash Balance schemes in general. Again until quite recently, there wasn't too much info out there, but there now seems to be more.

Officially they now seem to be classed as money purchase/DC schemes, which would mean no need for regulated advice.

https://www.moneyhelper.org.uk/en/pensi ... on-schemes
https://www.gov.uk/hmrc-internal-manual ... /ptm023400

To be honest I'm not sure whether there was previously any set rules, they've actually been there all along, or they've recently changed.

But if you can now transfer out Cash Balances of over £30k without advice, it does beg the question what rules have the RMPP been using previously?

I would suggest anybody interested in transferring out the Cash Balance, contact the RMPP for clarification and post it on here for others to see.

*If you want to transfer out the actual RMPP pension, you would still need regulated advice if the CETV is £30k+ because it is definitely a DB scheme.

[Hyrrokkin]

Well that is interesting news - i was mildly interested in transferring my Cash balance to my SIPP but put off by the needing advice rule/condition.

I might contact them - see what they say.

[moyaspawn]

Spoke with a lady from moneyhelper/pension wise, who was aware that we in RM are in a number of schemes.
When I was explaining the cash balance fund to her, she said she would get back to me after runnning it past - I think
she said there legal department. On getting back to me she said because the scheme is not index linked on future
payments, I was good to go ahead with the transfer and maybe it was RM policy regarding using an IFA advisor as RobertT has
alluded to.
On completion of transfer my fund dropped £170 (0.5%, 64 in August)

[RobertT]

I'm not sure if it's RM that's changed their policy of requiring advice for transfers over £30k, or whether the official government rules on Cash Balance schemes have been updated.
Either way, it seems it may now be possible to move it to a personal pension without regulated advice, even if it's value is over £30k.

Going by the RMPP calculator, the Cash Balance is reduced by 1.4% for each year it's taken early. So I'm guessing your 0.5% is a mixture of that and the annual bonus being added?
As far as I know, that figure hasn't been announced yet, but they aim for it to be at least CPI(previous Sept), which was 3.8%.

Transferring out can be beneficial for some people, but not necessarily for all, as it depends on your employment status at the time and which option you choose when taking your Age65 benefits.

If you're still working, the taxable element of the Cash Balance could put you into the higher 40% band, and therefore transferring out and drawing it down can reduce your tax liability down to 20%.
While using it to fund the tax free cash with Age65 can mean more than 25% of it being tax free.

So it's important you look into all the possibilities and do what's right for you.

[Hyrrokkin]

I'm not sure if it's RM that's changed their policy of requiring advice for transfers over £30k, or whether the official government rules on Cash Balance schemes have been updated.
Either way, it seems it may now be possible to move it to a personal pension without regulated advice, even if it's value is over £30k.

Going by the RMPP calculator, the Cash Balance is reduced by 1.4% for each year it's taken early. So I'm guessing your 0.5% is a mixture of that and the annual bonus being added?
As far as I know, that figure hasn't been announced yet, but they aim for it to be at least CPI(previous Sept), which was 3.8%.

Transferring out can be beneficial for some people, but not necessarily for all, as it depends on your employment status at the time and which option you choose when taking your Age65 benefits.

If you're still working, the taxable element of the Cash Balance could put you into the higher 40% band, and therefore transferring out and drawing it down can reduce your tax liability down to 20%.
While using it to fund the tax free cash with Age65 can mean more than 25% of it being tax free.

So it's important you look into all the possibilities and do what's right for you.

100% on the last point

I have contacted RMPP so will see what they say -
Not saying i would make a transfer but if the option is there no harm in looking into it for the future.

[mr hil.]

.....
As far as I know, that figure hasn't been announced yet, but they aim for it to be at least CPI(previous Sept), which was 3.8%.
.....

I received my pension newsletter yesterday and the increase this year is 6.2%, for April 2026
Edit....Oops my bad it is indeed 6.4% I guess I should wear my reading glasses for the silly colours they use as background for the text boxes

[RobertT]

.....
As far as I know, that figure hasn't been announced yet, but they aim for it to be at least CPI(previous Sept), which was 3.8%.
.....

I received my pension newsletter yesterday and the increase this year is 6.2%, for April 2026

[linntroika]

Interestingly i had a chat with an advisor from Hargreaves lansdown a few weeks ago and was asking him regarding the cash balance transfer . He seems pretty optimistic that this was very possible through them , but to give them 6 months notice before you take the pension . I informed him i was banking the pension until my 65 birthday. They sent me some literature , please see attached

Transferring a Defined Benefit pension
Defined Benefit pension transfer advice is complex and requires a Specialist Transfer Value Analysis to be undertaken and for advice to be provided by a qualified Pension
Transfer Specialist.
How much does this service cost?
The cost of transferring a Defined Benefit pension is the same as Financial Planning plus an additional Specialist
Transfer Value Analyst Charge of £1,500 (£1,250 plus VAT).
Example
Transfer of a Defined Benefit scheme valued at £400,000:
2% of first £200,000 = £4,000
1% of remaining £200,000 =
£ 2,000
Specialist Transfer Value
Analysis Charge
(£1,250 + £250 VAT) = £1,500
Total charge (including £250
VAT) £7,500

[yellowbelly]

Interestingly i had a chat with an advisor from Hargreaves lansdown a few weeks ago and was asking him regarding the cash balance transfer . He seems pretty optimistic that this was very possible through them , but to give them 6 months notice before you take the pension . I informed him i was banking the pension until my 65 birthday. They sent me some literature , please see attached

Transferring a Defined Benefit pension
Defined Benefit pension transfer advice is complex and requires a Specialist Transfer Value Analysis to be undertaken and for advice to be provided by a qualified Pension
Transfer Specialist.
How much does this service cost?
The cost of transferring a Defined Benefit pension is the same as Financial Planning plus an additional Specialist
Transfer Value Analyst Charge of £1,500 (£1,250 plus VAT).
Example
Transfer of a Defined Benefit scheme valued at £400,000:
2% of first £200,000 = £4,000
1% of remaining £200,000 =
£ 2,000
Specialist Transfer Value
Analysis Charge
(£1,250 + £250 VAT) = £1,500
Total charge (including £250
VAT) £7,500

As the song goes 'The grabbing hands grab all they can'.

[RobertT]

Interestingly i had a chat with an advisor from Hargreaves lansdown a few weeks ago and was asking him regarding the cash balance transfer . He seems pretty optimistic that this was very possible through them

HL and most if not all other personal pension providers, require positive advice for any DB pension transfers to go through. They will only accept if it's in your best interests, and it generally isn't!

The HL website says this:

You can transfer a defined benefit (DB) pension, such as a final salary scheme, into a personal pension like a SIPP - but it’s usually not recommended. DB pensions offer a guaranteed income and often include benefits for a spouse or partner after your death.
If the transfer value is more than £30,000, you must take advice from a regulated financial adviser. If you're transferring to HL, you’ll need to show that your adviser recommends the transfer.

But what we're talking about here is the apparent changing of the rules when transferring the Cash Balance scheme.
If the subject of this thread turns out to be correct and Cash Balance schemes are now classed as DC pensions, you won't need advice to transfer anyway, regardless of their value.

Always bear in mind that if you decide to transfer the Cash Balance, you need to make sure it's the best choice for you, compared to taking it with your RMPP Age65 benefits.
There's isn't a 'one size fits all' with this, it'll come down to your own personal circumstances and choices.

[linntroika]

Thanks Robert - ive a few years yet , so hopefully get a bit more clarity by the time i take it

[Hyrrokkin]

I'm not sure if it's RM that's changed their policy of requiring advice for transfers over £30k, or whether the official government rules on Cash Balance schemes have been updated.
Either way, it seems it may now be possible to move it to a personal pension without regulated advice, even if it's value is over £30k.

Going by the RMPP calculator, the Cash Balance is reduced by 1.4% for each year it's taken early. So I'm guessing your 0.5% is a mixture of that and the annual bonus being added?
As far as I know, that figure hasn't been announced yet, but they aim for it to be at least CPI(previous Sept), which was 3.8%.

Transferring out can be beneficial for some people, but not necessarily for all, as it depends on your employment status at the time and which option you choose when taking your Age65 benefits.

If you're still working, the taxable element of the Cash Balance could put you into the higher 40% band, and therefore transferring out and drawing it down can reduce your tax liability down to 20%.
While using it to fund the tax free cash with Age65 can mean more than 25% of it being tax free.

So it's important you look into all the possibilities and do what's right for you.

100% on the last point

I have contacted RMPP so will see what they say -
Not saying i would make a transfer but if the option is there no harm in looking into it for the future.

To quote myself

Received a reply from RMPP

"The rules regarding transfers haven’t changed at all.

As such, the previous stipulations will remain in place as this is a framework initiated by the UK Government, not Royal Mail.

Members can transfer their Cash Balance fund at any point."

So if i read that right nothing has changed ? Bit confused now

[RobertT]

Received a reply from RMPP

"The rules regarding transfers haven’t changed at all.

As such, the previous stipulations will remain in place as this is a framework initiated by the UK Government, not Royal Mail.

Members can transfer their Cash Balance fund at any point."

So if i read that right nothing has changed ? Bit confused now

Me too!

Having done a bit more research, I think whether advice is required comes down to whether a Cash Balance scheme is classed as having safeguarded benefits, or not.

Safeguarded benefits are usually classed as DB pensions, as they promise an income based on your wages and length of service. Or DC pensions with a guaranteed annuity rate, as they're often higher than you can get on the open market.

It seems that if a Cash Balance plan is attached to a DB scheme, they probably will have safeguarded benefits. If they're not, they probably won't.
But it will come down to the individual scheme.

The RM Cash Balance scheme does guarantee a certain amount of money when taken at 65, and if used to fund the tax free cash with Age65 benefits, it's attached to that pension and so suggests it may well be safeguarded.

But someone has posted on here, saying they've managed to transfer £34k without advice.

Does this mean the OP got lucky?
Or is it a case of contradicting advice from the RMPP 'helpline'?
Either way, it's something that really needs to be clarified.