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  • FIRST POST
    • deejaybee
    • By deejaybee 12th Feb 17, 11:18 AM
    • 372Posts
    • 86Thanks
    deejaybee
    Questions re a CSC Computer Sciences LTD deferred pension.
    • #1
    • 12th Feb 17, 11:18 AM
    Questions re a CSC Computer Sciences LTD deferred pension. 12th Feb 17 at 11:18 AM
    Hi all,

    Background:

    I was employed by Lucas Engineering & Systems between 1990 and 1996, during the later stage of that period the majority of IT staff were outsourced to CSC Computer Sciences LTD, and they also took over the final salary pension scheme via TUPE.

    When i joined L E & S in 1990, i transferred pension from my previous employer into L E & S scheme, it is treated as an AVC scheme.

    The here and now :

    I received a deferred statement in September 2015 ( will request another one soon )

    When i left CSC my deferred pension amounted to 718.32 p.a
    Made up of following components:

    (1) 304.72 p.a is your estimated GMP and approx corresponds to the amount you would have earned in SERPS. This will be increased by the Scheme by 7% for each complete tax year from leaving date up to Normal Pension Date.

    (2) 413.60 p.a. is that part of your pension which will be increased by the scheme in line with the prices index to a max of 5% for each complete year from leaving date till normal pension date. ( They switched from RPI to CPI in 2011 )

    I understand all that stuff, but i am a bit puzzled about how my AVC fund is being treated ?

    Most recent valuation ( as of July 2016) was just under 12 K.

    I have asked about transferring or otherwise accessing this " pot",but i have received following seperate answers :

    " Further to your recent query in respect of transferring your AVC fund,the scheme actuaries have confirmed that it serves as an underpin to your GMP and pre 1997 amount, it cannot be transferred out seperately from your Scheme benefits "

    and

    " When you decide to retire your AVC fund will be used to purchase the accrued GMP in the CSC Computer Sciences LTD pension scheme. The pension you receive will be at least this value with any remaining fund being used to buy a Pre 97 pension "

    NB: These replies were from 2014, obviously before George Osbornes's recent pension changes.

    I know i am most probably mis-understanding all this, but it sounds to me that the sum of money i transferred to LUCAS from previous employer is being used to pay for something i should be getting anyway ?

    Appreciated input from the experts on here
Page 3
    • xylophone
    • By xylophone 17th Mar 17, 10:33 AM
    • 21,313 Posts
    • 12,241 Thanks
    xylophone
    You may find this thread of interest

    http://forums.moneysavingexpert.com/showthread.php?t=5618411
    • deejaybee
    • By deejaybee 17th Mar 17, 6:37 PM
    • 372 Posts
    • 86 Thanks
    deejaybee
    Hi again xylophone

    Thanks again for all your help on this matter, i am pretty clear what is going on now - good that all the "AVC" confusion has been cleared up !!

    Yes i got a state pension statement in June 2016:

    My estimated state pension was 134 a week ( 39 qualifying years up to tax year 2014/15 )

    COPE amount estimate = 55.11 a week .

    Have not received CETV from Mercer yet, they said 28 days, so should be towards end of March.

    I will start a new thread sometime as i am 57 next birthday and since i went self-employed around 7 years ago, i have not made any pension provisions, apart from NI contributions, and i need to make a plan or i will be working till i drop :-(
    • xylophone
    • By xylophone 17th Mar 17, 7:27 PM
    • 21,313 Posts
    • 12,241 Thanks
    xylophone
    I'll be interested to hear how you get on.
    • deejaybee
    • By deejaybee 28th Mar 17, 3:37 PM
    • 372 Posts
    • 86 Thanks
    deejaybee
    Hi again,

    received CETV today :- just under 52 K.

    Given that most recent valuation of deferred pension was very nearly 3K per annum, my gut feel is that is not an attractive offer.
    • xylophone
    • By xylophone 28th Mar 17, 5:32 PM
    • 21,313 Posts
    • 12,241 Thanks
    xylophone
    my gut feel is that is not an attractive offer.
    I'd say your gut is right.....
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