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Tayside Pension Fund

The Tayside Pension Fund

Defined benefit pension schemes like the Tayside Pension Funds give their members peace of mind that their savings are secure and their pensionable benefits are protected by law. Despite this, some chose to transfer their pension funds elsewhere – often seduced by the Cash Equivalent Transfer Value (CETV) of their pension pot or the promise of high returns on an investment.

Unfortunately, those who choose to leave a scheme like Tayside Pension Funds also often unwittingly put their funds at significant risk – a fact rarely explained by the individuals or firms profiting from the pension transfer.

Find out more about the facts and fiction of defined benefit pension transfers.

If you’re concerned that advice to transfer your pension away from the Tayside Pension Fund may have put your money at risk or left you out of pocket, the team at Beat the Banks would like to hear from you.

A safe, secure and predictable scheme

The Tayside Pension Fund is the fourth largest Local Government Pension Scheme (LGPS) in Scotland and has been administered by Dundee City Council since 1996. As of March 2018 it had a membership of over 48,000 covering 45 participating employers in the area, including:

  • Angus Council
  • Dundee City Council
  • Dundee & Angus College
  • Perth & Kinross Council
  • Perth College UHI
  • Police Scotland (non-uniformed staff)
  • Scottish Fire & Rescue Service (non-uniformed staff)
  • Tayside Contracts

The defined benefit scheme pensions were calculated on a final salary basis until the end of March 2015, when the switch was made to career average earnings. Being a statuary LGPS gives pension holders the comfort of knowing their pensionable benefits are both extremely secure and defined by law.

The normal pension age under the scheme is directly linked to the State Pension Age, and subject to a minimum age of 65. There are, however, a number of circumstances where there may be the opportunity to retire from as early as age 55 onwards. 

This might happen if an employee decides to move to a less senior position or reduce their hours. Taking a pension earlier, however, does mean it could be significantly reduced.

Pension holders may also have the option of transferring their funds elsewhere. This can often look like an attractive option, especially when they discover the Cash Equivalent Transfer Value (CETV) of their pension pot. However, the Financial Conduct Authority (FCA) along with every other regulator since 1988 have all repeatedly stressed that for the majority of people this is not a good idea.

The FCA currently have concerns over the large number of pension holders being recommended to leave their defined benefit pension schemes, as well as the high fees being charged for such advice.

Swapping security for high stakes

Choosing to move away from a defined benefit pension scheme means swapping the safety, guarantees and security of a LGPS, where charges are shared between all members, for a much less predictable arrangement.

Initial advisor fees on pension transfers can be as much as 4% of a CETV, not to mention ongoing administration and management charges. Pension holders are also then exposed to the vagaries of the stock market, where there’s a real possibility that a substantial fall could run a pension pot dry. 

Remaining within the Tayside Pension Fund guarantees this will never happen with the added benefit that your pension also keep pace with inflation. However, the risks of pension transfers are often not properly explained by those pushing them on their targets.

The scourge of poor pension transfer advice

As a result of a review into poor defined benefit pension transfer advice, the FCA have taken action against several firms where they believe faulty advice has been given. 

Capital & Income Solutions based in Leeds, who had their pension transfer permissions removed in June 2019, is just one example of such action. Despite this, however, they have continued to give advice through Mike Connelly, a director of the Dundee-based Mortgage Finance Store. Connelly is neither qualified or authorised to give specialist pension advice and his firm are known to charge an advice fee of 4% with funds being placed with Royal London.

If you believe you have been the victim of faulty pension advice by Mike Connelly or another independent financial advisor, the team at Beat the Banks are here to help. Our claims experts can reconstruct any transfer since April 2015 to establish if poor advice has left you out of pocket. Call us on 0800 193 1234 for a no-obligation chat with one of our friendly advisors. 

Defined benefit pension schemes like the Tayside Pension Funds give their members peace of mind that their savings are secure and their pensionable benefits are protected by law. Despite this, some chose to transfer their pension funds elsewhere – often seduced by the Cash Equivalent Transfer Value (CETV) of their pension pot or the promise of high returns on an investment.

Unfortunately, those who choose to leave a scheme like Tayside Pension Funds also often unwittingly put their funds at significant risk – a fact rarely explained by the individuals or firms profiting from the pension transfer.

Find out more about the facts and fiction of defined benefit pension transfers.

If you’re concerned that advice to transfer your pension away from the Tayside Pension Fund may have put your money at risk or left you out of pocket, the team at Beat the Banks would like to hear from you.

A safe, secure and predictable scheme

The Tayside Pension Fund is the fourth largest Local Government Pension Scheme (LGPS) in Scotland and has been administered by Dundee City Council since 1996. As of March 2018 it had a membership of over 48,000 covering 45 participating employers in the area, including:

  • Angus Council
  • Dundee City Council
  • Dundee & Angus College
  • Perth & Kinross Council
  • Perth College UHI
  • Police Scotland (non-uniformed staff)
  • Scottish Fire & Rescue Service (non-uniformed staff)
  • Tayside Contracts

The defined benefit scheme pensions were calculated on a final salary basis until the end of March 2015, when the switch was made to career average earnings. Being a statuary LGPS gives pension holders the comfort of knowing their pensionable benefits are both extremely secure and defined by law.

The normal pension age under the scheme is directly linked to the State Pension Age, and subject to a minimum age of 65. There are, however, a number of circumstances where there may be the opportunity to retire from as early as age 55 onwards. 

This might happen if an employee decides to move to a less senior position or reduce their hours. Taking a pension earlier, however, does mean it could be significantly reduced.

Pension holders may also have the option of transferring their funds elsewhere. This can often look like an attractive option, especially when they discover the Cash Equivalent Transfer Value (CETV) of their pension pot. However, the Financial Conduct Authority (FCA) along with every other regulator since 1988 have all repeatedly stressed that for the majority of people this is not a good idea.

The FCA currently have concerns over the large number of pension holders being recommended to leave their defined benefit pension schemes, as well as the high fees being charged for such advice.

Swapping security for high stakes

Choosing to move away from a defined benefit pension scheme means swapping the safety, guarantees and security of a LGPS, where charges are shared between all members, for a much less predictable arrangement.

Initial advisor fees on pension transfers can be as much as 4% of a CETV, not to mention ongoing administration and management charges. Pension holders are also then exposed to the vagaries of the stock market, where there’s a real possibility that a substantial fall could run a pension pot dry. 

Remaining within the Tayside Pension Fund guarantees this will never happen with the added benefit that your pension also keep pace with inflation. However, the risks of pension transfers are often not properly explained by those pushing them on their targets.

The scourge of poor pension transfer advice

As a result of a review into poor defined benefit pension transfer advice, the FCA have taken action against several firms where they believe faulty advice has been given. 

Capital & Income Solutions based in Leeds, who had their pension transfer permissions removed in June 2019, is just one example of such action. Despite this, however, they have continued to give advice through Mike Connelly, a director of the Dundee-based Mortgage Finance Store. Connelly is neither qualified or authorised to give specialist pension advice and his firm are known to charge an advice fee of 4% with funds being placed with Royal London.

If you believe you have been the victim of faulty pension advice by Mike Connelly or another independent financial advisor, the team at Beat the Banks are here to help. Our claims experts can reconstruct any transfer since April 2015 to establish if poor advice has left you out of pocket. Call us on 0800 193 1234 for a no-obligation chat with one of our friendly advisors.

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