Pension

Discussion in 'Finance, Property, Law' started by saddave023, Aug 30, 2010.

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  1. Hi all, after 9 years service in the RA i decided to start again in the police. My question is what should i do with my 9 years Army...

    Transfer it over to the police, if so what would i get for 9 years. I've been told about 7, so i'd only have to do 28 instead of 35 years!!

    or,

    keep it separate?

    Thanks in advance.
     
  2. I can say without hesitation transfer your pension to the Police scheme. The Police pension costs at the moment 11% of income. This may go up to 13% soon but similar to the military it is a fairly short career so costs a bit too get a decent payout. It is a slightly better pension than the military one so as a result the 9 years will be adjusted down to reflect this. What does it mean to ME well I joined the Army as a junior soldier and in total served 8 years. This converted in to 5 years for the Police pension. Which means I can retire on a full Police Pension after 25 years of police service at the age of 48. For me and my circumstances it has worked well and if I had my time again I would make the same decision.
     
  3. I agree with Bernster.

    I lost a couple of years from my 13 year Army pension when I transferred it to a Police one. This was not a worry at all for me as the Police pension (at 11%) is probably one of the best you can get, and I churned out a few years in blue serge to make it worthwhile. I am in fact about to turn that Pension into a nice fat lump sum.

    There would be no point in transferring though, unless you fully intend to make the Police a long term career that is the real question. There is no point transferring and then finding out that you do not like the job.

    It can be a crap job with not the slightest bit of glamour attached to it, the perks are virtually nil and it not a job that everybody can do. Forget about the real camaraderie that you will have enjoyed in RE, you will be watching your back in the station as well as on the streets.

    Transferring Pensions is something you should consider speaking to an IFA about as well, as no two cases are the same.

    Best of luck though.
     
  4. I agree 100% with Arte.I transferred mine as well,lost a couple of years but let me go from Policing six years early on a full pension.I've got a few mates who are regretting not doing it.It worked for me,but not everyone is the same.Good luck.

    I could be a boring fart and go on about it not being the job I joined,I still miss bits of it so it can't have been that bad.
     
  5. Just to echo what everyone else has said, I would do it at all costs as going on the theme of you having 'paid' into a non contributory pension scheme fo 9 years.... even if you only get 7 of the 9 converted, it's not only saved you 7 yrs contributions but is worth a small fortune and knocks it off your 'time to do' chart.
    The Old Bill pension changed in 2006 I believe but not for the better. I think you have to do more time, pay in slightly less and get less at the end of it.
    Not the same job as it was and as Bernster said... the knives are blunter, longer and rustier than what you may already have experienced. If you're suited and you love it, you can't go wrong. You'd be well sorted to get yourself covered with private medical Insurance. The FMOs struggle with the sellotape to stick the pain killers to your forehead.
    Sorry! Edit to say "What Arte-et-Marte said!" Not Bernster!... Forgive me!
     
  6. OK, I did my 22 years, I am now 43 and thinking about joining my local force. If I am successful, would I get enough time in to get a decent police pension?
     
  7. Yes you would and it would still be worth doing, I don't know how many years the full whack converts to in police pension but I do know others have done it. The one note of caution for the future is the Condemns attacking the Police pension, they are currently using the credit crunch like the MOD used the Atlantic conveyer and blaming all cuts on one thing. The Police pension will probably remain broadly the same for the next few years, but one thing I have learnt since leaving the Army is the cyclic nature of attacks on the pay and conditions of public services and that when it's your turn tough luck. Whatever happens it is likely the police pension will remain better than the military but you do pay 11% contribution.
     
  8. Without doubt transfer your Army service towards your Police pension. Less time to do at the other end, it soon creeps up on you!
     
  9. Talk to a professional about this. Given your age, I can assume you are on an AFPS75 immediate pension? You will not just be giving up the years in the forces scheme, but the income over the next 12 or-so years. It comes down to whether a full police pension at 55, say, is worth more than a 22-year Army one and a 10+ year police one (almost certainly, unless the govt gets really nasty) plus whatever you can do with the income, whether having fun or investing it, while you are in the police.

    A matter for a finance professional who can find out how many police scheme years you'll get for your 22 and a scenario where you are willing to answer more detailed questions than on a random web-forum.
     
  10. Sorry to hijack this thread, but does any one know which other government/civil/crown service pension schemes AFPS 75 can be transferred to? Has anbody here had any experience of transferring benefits to any of these organisations?
     
  11. vauxhall

    vauxhall Sponsor

    I can't think of an public sector scheme that doesn't accept transfers. You have to be an active member of the scheme and each scheme has time limits on when that transfer can be done - I believe it is within 12 months of becoming a member for the police scheme.

    What you do is ask SPVA for a transfer value for your preserved pension and than ask your new scheme how much that sum will buy in their scheme. Simply asking about the transfer value does not put any obligation on you to go ahead. It is only if you like the look of what the new scheme offers and agree to it in writing that the transfer is binding.

    I echo what others have said about taking financial advice if you need help.
     
  12. To save you some time in finding the right IFA you would need to speak to one who holds G60 and/or AF3 qualifications if you want to get advice on transferring from one to another - there will be a fee involved.