IFA Newsletter June 2025

Whilst we have generally seen very modest increases in average CETVs recently (see Grove Pension Solutions ‘real world’ CETV index below) we have seen some schemes where CETV’s have increased more significantly, including the following:

• Andrew Weir Pension Scheme
• Barclays Bank UK Retirement Fund – Afterwork
• BASF UK Group Pension Scheme
• Berry UK Pension Scheme
• Biffa Pension Scheme
• BMW (UK) Operations Pension Scheme
• Co-operative Pension Scheme (Pace)
• Durham County Council LGPS
• Land Rover Pension Scheme
• Local Government Pension Scheme (Northern Ireland)
• Mineworkers Pension Scheme
• MUFG Bank UK Pension Fund
• NatWest Group Pension Fund
• News International Pension Plan
• NSK Pension Scheme
• NTL Pension Plan
• Pearl Group Staff Pension Scheme
• Prudential Staff Pension Scheme
• Sal Pension Scheme
• Strathclyde Scottish LGPS
• Teesside Pension Fund LGPS
• Thales UK Section 1 Pension Scheme
• The AXA UK Group Pension Scheme
• The Littlewoods Pension Scheme
• The Richard Burbidge Limited Pension Scheme
• Total Energies UK Pension Plan – Kalon Scheme
• UPS Pension & Life Assurance Plan
• USS – Universities Superannuation Scheme
• Warwickshire LGPS
• West Midlands Pension Fund
• Whitbread Group Pension Fund

*Increase of more than 5%, new CETV’s calculated since January 2025

The most recent interest rate review from the BofE in May has resulted in a further cut with base rate now 4.25% Bank Rate reduced to 4.25% – May 2025 | Bank of England. However, with inflation still remaining well above target (Consumer price inflation, UK – Office for National Statistics) it seems very unlikely that there will be a further cut on 19th June.

Nevertheless, we have yet to see a significant decrease in Gilt Yields so despite the 1% drop in base rate in the last 10 months, CETV’s have yet to see major increases across the majority of schemes – with the exception of those listed above.

We provide Defined Benefit (DB) and safeguarded pension transfer advice to both directly referred clients (B2C) and those introduced by independent financial advisers (IFAs) on a business-to-business basis (B2B).

Other than our standard minimum fee for Full Advice is £3,950, applicable to both B2B and B2C cases, we offer a discounted rate for B2B referrals to allow the introducing IFA to apply their own initial ‘introduction’ fee. This fee should fairly reflect the work undertaken prior to referring the case to us.

Important Considerations:

• The introducer fee can only be facilitated in the event of a transfer proceeding.
• The agency switch back to the referring IFA will only be actioned once all fees have been correctly settled.
• If the Cash Equivalent Transfer Value (CETV) changes at the point of transfer, fees may need to be recalculated. This process can take time, especially if the receiving scheme has already made payment.
• Some pension providers may indicate that a fee has been ‘settled’ or ‘allocated’. However, please be aware that the funds may not yet have cleared in our account or may still be awaiting allocation by our finance team.

Our payroll runs weekly. Once we confirm that the correct fee has been received and allocated, payments to referring IFAs are typically processed within one week. The agency switch request will follow shortly thereafter.

The Grove Pensions Solutions (GPS) CETV Index provides an average CETV based on a £10,000 per year pension. This is calculated by analysing the actual CETV and benefit value of thousands of ‘real-world’ CETV’s calculated since January 2024. This is unlike other indexes that use a ‘typical’ CETV based on assumptions.

A Transfer Value Comparator (TVC) is the amount a transfer value would need to be at the date of calculation, to match the future benefits from the existing scheme, based on risk free investments. Comparing the TVC against the CETV gives an indication of the relative generosity of the CETV.  For example, if the Transfer Value offered by the scheme matches the TVC (100%), this indicates a generous transfer value.

The following chart is based on analysis of thousands of real CETV’s calculated since January 2024.