DB Transfer Value

A

AChara

Registered User
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I posted previously about a significant drop in Transfer Value value between 2022 and 2023.

My retirement date under this DB scheme was a few weeks ago and while the TV had gone up slightly it's still miles off what it was 2 years ago. I haven't yet taken my benefits or indeed decided how I want to take my benefits (ARF or guaranteed pension).

My question is if I don't take benefits for say the next 12 to18 months and interest rates fall as all indications are that they will, what is likely to happen to the transfer value?

And just to be clear, my benefit date has come and gone and I know I can't defer taking my benefits as such. But I haven't communicated what I want to do. And if I don't do anything for a period of time will the TV be frozen at it's current level or will it react to any interest rate decreases? In other words if I don't advise the administrators for 18 months what i want to do and in that time interest rates have decreased significantly, will the TV increase or be frozen at it's benefit date level.
 
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Hello,

What tells you that interest rates are going to increase?

From what I'm seeing, I think they'll gradually decrease during the course of this year.
 
MrEarl said:
Hello,

What tells you that interest rates are going to increase?

From what I'm seeing, I think they'll gradually decrease during the course of this year.
Click to expand...
Post amended - meant to say 'fall/decrease'.

My question still remains, will my TV react to interest rate changes even though the benefit/retirement date has come and gone?
 
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The minimum standard transfer value is linked to the yield on the French Tresor , creating a market value adjustment, either fixed linked or index linked depending on the pension increases on the benefit. As you are at NRA the full MVA applies

You can see the history of them at https://web.actuaries.ie/public/standards-regulation/mva

You should clarify will your scheme permit transfer value after NRA. It may not be an option for your scheme. The transfer value should be valued at the market conditions the date they are calculated.
 
I recently reached pension age. Once that happened, I was no longer offered the TV option. I could take the money as an annuity or an ARF. Happy to take the annuity to have a base line for retirement income. TV may no longer be an option for you.
 
I’d be interested as to how this worked out for you.
Was the transfer to be to another scheme linked to the same employment ?
 
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