UK Pension Transfer Rate BNY Mellon

Hi, have just arranged for my Royal Mail contributory pension to be credited to my Credit Agricole Account. The last credit was OK via Cabinet Office, & normal falling £:€ rate.

However, today’s was a nasty shock. It was via Bank of New York Mellon & the exchange rate was worse than parity & a drop of €339!

I’ve phoned the pension’s department & they will ring me in 48 hours.

I wonder whether anyone has experience of this?

I will NOT accept such a poor exchange rate & think I may have to get my pension paid in £’s into my UK a/c, then make cash withdrawals (no cost from my bank) or tranfers from my bank (small fee) into the French account.

Would appreciate advice from anyone who has experience of BNY Mellon. I understand they do pay pensions overseas for govenments. Wonder if this benefits the Government & BNI & they take me for a Lemon.?

We had a similar experience when considering having our Teachers and NHS pensions directly in euros. The rate was abysmal and we quickly decided to continue having them paid in sterling to our UK bank and then use an FX company to transfer when it suits.

I have to say though that we continue to get our UK State Pensions paid directly in euros as the rate is somewhat better than we can achieve from the FX companies - long may that continue.

I’m not sure you’re right about it benefiting the Government though; whilst the TP is considered a Govt pension, it is not paid by the Govt per se but an agency on behalf of HMG (in the same way the NHS pension is treated). The beneficiary here undoubtedly is the Agency.

The State Pension on the other hand is paid by HMG directly and seems to be somewhat closer to the inter-bank rate.

Thanks for your reply Graham_Lees. It is interesting to me that the old Post Office Staff Superannuation Fund was subsequently closed to new subscribers. It got into difficulties during the Financial Crisis & the Government took over all £28BN of its assets & liabilities.

I only applied in early September 2016 to have my pen paid direct to CA & typical me got a digit wrong on my ISBN! It was delayed until September 17 when the credit said ‘Virement Cabinet Office’. Today’s credit said ‘Virement BNY Mellon’ & was €326.70 LESS than the payment 14 days & €339 LESS than todays exchange rate.

We still use the Nationwide Building Society from our retirement home in the Gironde. This is because payments for goods with our Special Credit Card & cash withdrawals with our FlexPlus Card are fee free.

If the BNY Mallon payment is correct then it will be the last time we get screwed by then since I can easily get my pen paid in £’s into the FlexPlus Account-my wife will check the digits this time!!!:slight_smile:

Our state retirement pensions say Virement WorldLink. I guess the other advantage of using an FX Company is that you can pick a day when the exchange rate is better…?

Yes @Roger_Waldram, our State Pensions also have the notation that they are paid by WorldLink and you are right, having the others paid to your UK Account provides the opportunity to choose when to trigger a transfer when the rate seems appropriate and for funding ‘bank of mum and dad’ activities :grin: