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DB transfers – working to a deadline 

8 December 2016

Many of you will have seen the series of Pointers we ran from the presentation given by Benjamin Fabi, paraplanner with Jones Sheridan, on DB pensions transfers at the national Powwow. 

Here he gives a final piece of advice when dealing with this complicated process.

When gathering data from pension providers regarding the potential transfer, Fabi says, it was important to appreciate that “you are on a clock”.

Once given, the cash equivalent transfer value (CETV – the value that is supposed to represent the value of giving up the benefits of a defined benefit pension) has a three-month guarantee, he points out.

“Those three months will disappear quickly, so get as much information and analysis done before or while you are waiting for the cash equivalent transfer value to come back to you,” he suggests.

“Remember, you have the liability if, because of delays in your process, the client misses the CETV rate, which then drops in value, or they miss a more favourable annuity rate as a result.

“So when you get information from the scheme, have a process that ensures you react quickly. At Jones Sheridan, we have a 48-hour maximum turnaround time to review the information from the scheme so that any extra work needed can be done immediately.”

See also:

Pointers: When paraplanning DB Pension Transfers
• What place has critical yield analysis in DB Pension Transfers
Pointers: Creating suitability reports for DB Pension Transfers


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