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Summary

How To Avoid Missing CETV Transfer Expiry With Your Final Salary Pension Transfer Deadline?

A CETV is a Cash Equivalent Transfer Value that you receive from your Defined Benefit or Final Salary Scheme. This CETV transfer has an expiry date of three months from the date in which it was produced. This means you have to submit all the required paperwork within a strict deadline to secure the transfer value.

Watch a video below from our CEO and Independent Financial Adviser, Dominic James Murray, explaining how to avoid CETV transfer expiry dates and how to handle your CETV in the most efficient way.

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:

  1. Find out who you feel comfortable working with
  2. Find out who you trust
  3. Finally, request your CETV transfer

Let Our Regulated IFA Help You With Your CETV Transfer

Cameron James is a regulated Independent Financial Advisory firm based in the UK. We have been in the UK Pension Industry for over 6 years, helping clients in multiple countries including Europe and the USA. Our regulated IFAs will gladly help you and take care of your CETV transfer. Book a free initial consultation with us through the button below at a time and date convenient to you.

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