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  1. #1

    Old GAPPP with-profits. Transfer value?

    I would appreciate some guidance from those who understand these types of policy please.

    Back around the turn of the millenium I contracted out of SERPS for about a year or so into a Group Appropriate Personal Pension Plan with Royal & Sun Alliance.

    Some years ago this scheme was closed to new members and transferred to Phoenix.

    I only have a small sum in this scheme, but every year when I get my annual statement I think that maybe I should transfer it to my SIPP or my current employer's DC pension - more for reasons of "simplicity of management" / "clarity of value" than because it will provide better growth (although I suspect it will do that too from reading around how this type of with-profits fund has to reduce its equity and increase its bond holdings as the number of remaining members decreases, and how costs may also increase too).

  2. #2
    Looking back through my annual statements I get two figures - the current fund value and the current transfer value.

    Up until about 3 or 4 years ago, these figures were always either identical, or very near to each other, but since then the current value has changed very little, whilst the transfer value has roughly doubled.

    I understand that an MVR may be payable if I transfer before normal retirement age (I am 49).

    What I am looking for is an answer to two questions -

    1. If I transfer this to my SIPP would the amount transferred really be roughly double my current fund value (discounting the effects of an MVR for this question)?

    2. If an MVR (or any other charges) were to be applied to the quoted transfer value, can anyone give me an idea of a ball park cost (1%, 10%, 50%...)?

    There are no guarantees on this scheme.

    The values given in this year's statement, received today, are:
    Value of pension fund : 7788
    Transfer value : 15531

  3. #3
    rare beasts but changes in 2006-2010 meant that they are generic now.

    Group appropriate personal pensions all became reclassified as group personal pensions. Group personal pensions are exactly the same as individual personal pensions on the whole.

  4. #4
    All money purchase pensions, including SIPPS have two figures. Modern plans tend to be the same but older ones can have differences.

  5. #5
    The final bonus accrued to date is usually added to the transfer value but usually not added to the current value. That is not a 100% rule but most do it that way.

    With WP funds, you tend to largely ignore the current value and focus on the transfer value (unless transfer value is lower).

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