Pension Release: Pension Transfer Advice

by Pension Release by Pension Forecast

Charles asks…

www.pension-transfers-qrops.com has anyone used this company for advice on Qrops pension transfers?

Pension Release by Pension Forecast answers:

Why would you need someone to do a pension transfer for you.
This is super easy to do yourself.
Call Charles Schwab or Fidelity Investments
Ask for a low cost annuity (only if you are bad with money).
Or invest your money in laddered cd’s that pay out monthly and give you income.
/

Mark asks…

Pension Transfer – Rolls Royce to Railways pension scheme? please Help?

Hi, worked at Rolls Royce from feb 1997 to nov 2001 and paid into their own scheme I then worked for another company that had no pension until june 2007. From july 2007 I have worked for MML /East Midlands Trains and pay into the Railways pension scheme.

Should I transfer my RR pension to my Rail one? Leave it as it is? I am 40 years old.

In 2007 the transfer value on my RR pension was £10,000 & contributions in transfer value £4,500 I am waiting on the current value from them.

I know its not alot lot but would it be more beneficial to add it to my current ?

Any advice you can give me would be gratefully appreciated – Thanks very much

If you need more actual details I can provide them & have just asked RR for up to date details
Both pensions are final salary/Defined Benefit

Pension Release by Pension Forecast answers:

I do not consider that you should give any reliance upon advice that you receive through Answers.

You are the only one who knows the details and as to your attitude as to the degree of risk that you are prepared to accept as to the result of your decision.

You need to compare the final salary benefit or anticipated cash accrual benefit under the first scheme and the additional final salary benefit or additional anticipated cash accrual benefit under your current scheme for the cash transferred.

As an example, if your original scheme benefits are a known figure but your current scheme is money purchase – where the final value depends upon value of the cash at the relevant date – you would need to take account of the loss of a ‘guarantee’ for an unknown lower or higher amount.

I started by saying that I did not consider that you should give any reliance upon advice that you receive through Answers. My comments are not an answer. They are an attempt to explain a little as to why you need to consider the matter very carefully. If your current company scheme is an occupational pension scheme under trust, you can contact the trustees of your scheme for some information.

Ken asks…

Pension Transfer – Rolls Royce to Railways pension scheme? Help?

Hi, worked at Rolls Royce from feb 1997 to nov 2001 and paid into their own scheme I then worked for another company that had no pension until june 2007. From july 2007 I have worked for MML /East Midlands Trains and pay into the Railways pension scheme.

Should I transfer my RR pension to my Rail one? Leave it as it is? I am 40 years old.

Any advice you can give me would be gratefully appreciated – Thanks very much

If you need more actual details I can provide them & have just asked RR for up to date details

Pension Release by Pension Forecast answers:

Leave it alone presently. You may find others to consult with that were in the same situation or a similar one.

Susan asks…

Payment of pension to nominee………?

My dad passed away in Dec 2010.
His death certificate took 4 months and till then his pension was transferred to his account every month.
I am his nominee but the bank says that excess pension was transferred and it will be deducted from his account, what was transferred after his death.

Is this true?

Please advice.

Pension Release by Pension Forecast answers:

Are you asking about government pension? Or Pension policies of Financial companies.

If govt pension, spouse will get 50% only and hence bank is right in deducting excess pension. Spouse is the only nominee to get pension, not children.

Lizzie asks…

Should I contribute to the Canadian Pension Plan (CPP) or the Japanese National Pension System?

Hi everyone!

I’m a Canadian citizen and I’ve been living (and working) in Japan for over 2 years now… I was wondering about contributing into the CPP (Canadian Pension Plan). I read a lot about the pros and cons of both pension systems and it seems that the Japanese National Pension is not the way to go… that goes the same with the Japanese Health Insurance; but don’t worry, I got private health insurance.

As for applying for the CPP while living in Japan, will they require me to pay Canadian income taxes as well? Canada needs to know my income to calculate my CPP premiums right? So if I have to pay Canadian income taxes, wouldn’t I be paying double taxes (Japanese and Canadian)?

I also know of the accord that is now in effect between Japan and Canada that there is an agreement between the two countries about social security… but really, what does that mean? If I paid into the Japanese National Pension, can I transfer 100% of my contributions and my contribution years towards my CPP if and/or when I move back to Canada? Or does it mean something else?

I’m getting married (to a Japanese) this summer, but my fiance and I are not sure if when we will move back to Canada… but we probably will eventually. Would this effect choosing between the Canadian or Japanese pension system?

Unfortunately, as the reality of it is getting more obvious, both Canada’s and Japan’s pension system is on the verge of collapsing and I will probably not see a single cent or yen… but both systems do offer disability and death benefits that seem somewhat beneficial… like an insurance of sorts.

Your thoughts and advice would be greatly appreciated!
Thanks in advanced for your time!

Cheers,
Chris.
Sparky: thanks for your help and giving me a summarized version of all that government mumbo-jumbo… give me a video game and I’ll figure it out without the manual in no-time… but once it comes to retirement investments, taxation, red tape documents… I cringe and my stress levels instinctively sky rockets…

Anyway… I guess I don’t really have a choice then do I? Looks like I have to go through the Japanese system for now and *hopefully* if and/or when I do go back to Canada, I can transfer my contributions to the CPP. I heard the Japanese government is very strict with foreigners and that many expatriates had to fight to get what was rightfully theirs when they went back to their home country…
And it’s nice to know that there’s still money left in the Canadian coffers to help me out when I retire too!

Anybody else have any opinions or personal experiences?

Pension Release by Pension Forecast answers:

My normal specialty is income tax, not CPP. But I’ve found a couple of links that might be helpful.

This first link is a news release dated February, 2006 that gives general information on the agreement between Japan and Canada. What it basically says is that if you have contributed to one country’s government pension plan, the contribution years can be used to accumulate benefits when you apply for the other plan.

Http://www.hrsdc.gc.ca/eng/cs/comm/sd/news/2006/060215.shtml

This next link give a lot of the same information, but says that the agreement is now in place.

Http://www.hrsdc.gc.ca/eng/isp/pub/ibfa/japan-i.shtml

If I’m reading the information properly, there is the possibility (however remote) that you might qualify for both the Japanese insurance plan, and the CPP retirement benefits at the same time. Chances are slim, however, especially since the Japanese plan requires at least 25 years of contributions to the plan before you qualify. If you do happen to qualify for both, the agreement is null and the two benefits are calculated on their own merits.

The CPP requires only one valid contribution, however the more contributing years you have, the greater the benefit you’ll be able to draw. Your contributions to the japanese plan can count in the calculation of the canadian benefit if you don’t qualify for a japanese benefit because of the lack of contribution years.

You unfortunately don’t have the option of contributing directly to the CPP. In order to contribute to CPP, you must have been a resident of Canada during the year.

Http://www.cra-arc.gc.ca/E/pbg/tf/cpt20/README.html

Hope that helps you out. Just as an aside… I’ve been keeping track of the CPP as part of my retirement planning. The CPP investment board right now states that the plan has a surplus of about 110 billion dollars, and the surplus is growing. The current contributions to the plan are not yet exceeding the benefits paid from the plan. The fund is in good shape to deliver benefits for at least the next 75 years.

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