When transferring your Defined Benefit or Final Salary pension, understanding your CETV (Cash Equivalent Transfer Value) is critical. Many clients don’t realise that their CETV expires exactly three months from the issue date. Missing this deadline could cost you thousands in lost value or result in additional fees to reissue a new CETV.
We’ll explain how CETV expiry works, the common pitfalls that lead to missed deadlines, and how to avoid them by working with a regulated Independent Financial Adviser (IFA).
🎥 Watch the video below from our CEO and Independent Financial Adviser, Dominic James Murray. He shares real-life examples and expert tips on avoiding CETV expiry issues.
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An Example of Missing CETV from Our Clients
In 2022, we've actually had two instances of clients not attaining their CETV transfer expiry dates, although to clarify, neither of those clients were working with us originally. In the six years we have been working in the UK Pension Transfer industry, we have never had a client start the advice process with us from the beginning and not attain or secure their CETV transfer value. This means we have a 100% ratio of securing our clients pension transfers at their current CETV transfer value.
Why were these CETV transfers missed? How did it happen? Essentially, what happened was they started the advice process themselves. One client had multiple DB schemes, and was contacting the ceding schemes himself to request his Cash Equivalent Transfer Values.
He was based in the Isle of Man. He requested his Cash Equivalent Transfer Value from three different schemes in December. By the time he came to us in January, he had already lost four to six weeks on these CETVs. He emailed us over the CETVs after he decided that we were a credible firm, and he wanted to work with us.
When we started looking through his CETVs, we realised that he didn’t even have a CETV for one of the schemes. Instead, it was a letter stating they will be sending a CETV, but our client said he never received it. We then needed to put the Letter of Authority (LOA) on file which took 10 to 15 working days. At this point, we were up to seven or eight weeks into the CETV expiry date.
Furthermore, we contacted the ceding scheme, and they said they had already sent out the CETV via the post. They will now have to produce another one, which will take them 10 to 15 working days to get it produced. The problem is, we need to have a minimum of four weeks on any CETV for us to put together the report. A crucial report which outlines whether you should transfer your DB scheme or whether you should retain it.
As such, the client had three different schemes, and they were all completing their administration and paperwork at different speeds. In the end, during the advisory process, one of the CETVs expired. Straight away, we said to the client, you need to get a new CETV transfer. This means the client had to pay £300 extra to have a second CETV within a 12-month period. Then we were only left with two CETVs that we could work on at that point in time.
All of this trouble happened because he started the process himself. It is good for the client, and well done for him for wanting to do things independently, however, if you're not a pension transfer specialist, we highly recommend you don’t do this.
What Is the Best Way To Avoid CETV Transfer Expiry?
If you would like to have your CETV transfer completed properly, the best way to do it is to go through an Independent Financial Adviser. It will be completed effectively and you will avoid all the stress. A regulated IFA can discuss your situation with you and talk about your CETVs before you request them from your ceding scheme.
However, before choosing the best Independent Financial Adviser, there are certain things that you should consider:
- Find out who you feel comfortable working with
- Find out who you trust
- Finally, request your CETV transfer
Let a Regulated IFA Handle Your CETV Transfer From Day One
At Cameron James, we have never had a client miss a CETV transfer when they started the process with us from the beginning. That is because we know exactly how to handle the timeline, paperwork, and communication with ceding schemes. Whether you are in the UK, Europe, or the USA, our team of regulated Independent Financial Advisers will guide you every step of the way.
Avoid unnecessary delays, stress, and extra fees. Book a free consultation today and let us help you complete your CETV transfer efficiently and on time.
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