Notional Service

[wigwam]

I'm considering transferring my pension from a previous employment to the Civil Service pension scheme. However I'm not sure if its the right thing to do.

My previous pension scheme is a DB scheme and I have 8 years service with them (8/40's).

However if I transfer to the CS pension scheme it will only buy me 1.5 years service.

So I'm looking at 8years in the old scheme versus 1.5 years in the CS scheme.

Are there other factors I should be taking into account in making my decision?

Any suggestions appreciated!!

 

[LDFerguson]

I'm not a DB expert but a few things that pop into my head as issues for consideration would be: -

• What was your salary in the old DB scheme? If it was a lot lower than your current pay, the difference between 8 years at old salary and 1.5 years at new salary might not be as big as would first appear.
• You need to compare the terms of the old scheme with the current superannuation scheme, e.g. 1/80 for each year? 1/60? Escalation on pensions in payment? Spouse's pensions? Definition of scheme salary?
• Solvency of the old DB scheme might be an issue. The guarantees provided are only as good as the ability of the scheme to pay them.