Transfers
If you’re a deferred member, you can transfer your pension out of the scheme at any time up to 12 months before your Normal Retirement Age (age 65).
For example, you might want to transfer it into a new employer’s pension scheme or to another approved pension arrangement, such as a personal pension.
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The law states that if your transfer value is worth more than £30,000, you must first get independent financial advice. The Trustees recommend that you always seek independent financial advice when considering your options. Your Whitbread pension is a very valuable benefit, so you should be very careful when appointing an adviser. They must be regulated and authorised to deal with defined benefit (DB) pensions. The Financial Conduct Authority (FCA) website has lots of useful information about DB transfers, including a list of the key risks.
You can also use the FCA’s Financial Services Register to make sure a firm or individual is authorised and has permission for the service it’s offering you. Firms who can offer DB transfer advice are listed as ‘advising on pension transfers and opt-outs’.
How to get a transfer value
You can request a transfer value quotation from Aptia – it’s commonly called a Cash Equivalent Transfer Value (CETV). CETV quotations are only guaranteed for three months. If you are considering a transfer, you might want to set up an appointment with an independent financial adviser before you ask Aptia for a transfer value; this will help ensure that any advice can be prepared within the three-month window.
Deferred members are entitled to one CETV per 12-month period free of charge. If you need a new transfer value quotation within this period, then you’ll be charged for this extra transfer value. Currently, the cost is £250 + VAT for each additional transfer quotation.
Watch out for pension scams
Please be careful of any cold callers who encourage you to transfer your pension out of the scheme without taking proper advice, offer high investment returns, rush you to make a decision or suggest you can receive all your money as cash. This could be a pension scam.
You can find out more about pension scams and how to spot them on the Pensions Regulator’s website.
