Some thoughts (too many) from someone who has been there done that

I'm not a IFA but when my company closed the DB Pension Scheme I was on the consultation group so obtained more knowledge than most and also took the cash when they wanted to buy me out as it made sense for me. so this is personal experience rather than anything else but.

If you still work for the company and the DB scheme is still open (i.e. accepting contributions) only a fool would take the money out as all the risk is with your employer.

If you are under 55 (i.e. can't access the cash at the moment) you get no benefit from moving the cash as the potential benefits increase each year by at least 2.5% (Joey Deacon will know more) and it is difficult to guarantee that growth elsewhere.

If the Company aren't making you an offer to switch you could be losing out on a potential offer from them with an incentive to switch (anything up to 25% more).

If the Company make you an offer they will probably pay for an Adviser to act on your behalf independent from them in order that you receive advice - there are specialist firms for this - I didn't think that the one my company paid for were much cop so won't recommend.

The 25% cash allowance applies to the DB scheme as well -it will be a lower figure as your rights under the scheme are protected once you access the cash and they still have to pay you a pension on the 75% figure which increases with inflation until you die (and have to pay widow and child benefits as well)

If you no longer work for the company and the pension is frozen then most of the above still applies but there was a wrinkle in the scheme I was in in that the spouse's benefit if I died before I activated the pension was tiny and in my case my wife didn't have a separate pension so watch for this.

It is a FCA rule that if the pension value is above £30K you have to obtain advice from a FA (be careful not all that claim to be Independent are). Always be aware that most are selling their own products and not looking at the full market.

As Joey Deacon said DB transfers are viewed as the new PPI scandal - I was lucky in that I knew more than most and had background knowledge to compete with the FA.

Finally -the FCAs rules used to require that the FA compares the benefits under the DB Scheme with an annuity which these days are normally less beneficial than the DB scheme itself.

Hope this helps!

Posted By: biffbro, Jan 21, 19:21:06