Frozen UK Pensions and Brexit

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Genghis65

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My husband and I worked in the UK and each have a frozen DB pension (20 years' and 15 years' service respectively). We both work in Ireland now where he is a member of a decent DC scheme and I have a frozen DB pension and am now a member of the Single Public Service Pension Scheme. With the uncertainty of Brexit looming would we be safer taking a transfer out of our UK frozen pensions and setting up a bond here? I know no-one has a crystal ball but we are nearing retirement now and trying to minimise the risk with these pensions.
 
This is a tricky situation:
- will your UK provider transfer your value to an Irish Buy Out Bond? You need to check.
- what transfer value will the UK scheme offer?
- is the Transfer Value fair compared to the DB being foregone ( you might need professional advice)
- currently Sterling is low versus the Euro, but will the exchange rate improve post Brexit?
- would you be better diversified by having an Irish DC fund and a Sterling DB Pension?

Having ascertained what Transfer Value the UK schemes might offer, I think you will need professional advice to compare and contrast.
 
Thanks Conan. The UK Regulator requires scheme members to take professional advice before a transfer out can be taken so we will be doing that if we decide to proceed. It would be interesting to know if anyone else is in this dilemma. Flipping Brexit!
 
It's quite difficult to transfer out of a DB pension scheme in the UK. You need independent financial advice on it from an UK advisor to do a report to say you are better off transferring out of the DB scheme. This is an area that has got a lot of bad press recently so it has to be done properly.

1. The actual details of the pension. (These are usually supplied when you ask for a transfer value.)
2. The corresponding transfer value of the pension. ( I need the pack issued including the guidance)
3. A Pensions Background form of the client situation completing.
4. A risk profile questionnaire completed.
5. A Defined Benefit(DB) Authority completing by the Client to enable us to go back to the ceding trustees for clarification of anything.
6. Details of the costed proposal that the overseas adviser is proposing together with the expected returns and associated risks.

For any DB case that you are looking at moving over from a UK pension scheme you will need to be able to show that you have received the advice of a suitably qualified FCA registered Pension expert in the UK who will sign off a form confirming that advice has been given. It costs £800 to have the required report carried out.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Hi, Did you ever decide what to do ? I am in the same prediciment. I have a UK DB pension that is due to start later this year and have only found out I could transfer it out. A Financial advisor has indicated the transfer value is good and an ARF/AMARF would return something similar in terms of annual salary and lump sum but would give greater flexibility. Of course Brexit and sterling values are big unknowns at the moment but I cant see UK going under in the medium to long term? I wish I had never found out I could transfer out as now the thought that if I died sooner rather than later the money effectively disappears!
 
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