Job Change - Moving from DC to DB

[Margo1]

Hi,
First time poster - this forum is great by the way (thank-you!) - I used it when buying my houses and also for savings advice. First time looking at Pensions forum!

I've been offered a position with a new company (currently considering the offer). I'm in my early thirties and have been paying into my current companies DC pension scheme for about 7 years (they pay 5% and I paid 5% up until last year when I raised my contribution to 8%).

The new company have a Defined Benefit scheme - I have little understanding of these but read the key posts. My question is that if I leave this new company after 2 or 5 years, what "real" value would this DB pension be (currently it's being offered as a key selling point of the new job)? Surely DBs are only beneficial if you stay with the company until retirement age.

Forgive my ignorance - any advice greatly appreciated

 

[quinno]

They will just pay you back your contributions if you leave below 2 years (less tax). I'm not sure what the position is above 2 years, as I diodn't wait around that long!! I hope it's not the same company I was working with that advertised the DB pension as a key selling poijnt, 'cos it was a crap place to work!!!

 

[LDFerguson]

If you leave a DB scheme after 2 years you get a preserved benefit, i.e. a pension and lump sum entitlement at retirement age. The amount of pension / lump sum you get will obviously be a reduced version of what you would have got if you stayed, but it's still guaranteed as long as the scheme remains solvent.