Got my quote at last - help!!

jakkigers

Okay, after weeks of misunderstanding (on their part), I finally got a quote for me to take an actuarially-reduced pension at the age of 52 on 31 May 2010. I am in the Civil Service's classic pension scheme. Now I know the figures ain't great but bear with me (there are personal reasons for me taking early retirement). I will get £5563 per annum as a pension plus a tax-free lump sum of £19108. In addition, I will get a refund of my WPS contributions which amount to £3415.

The quote I received didn't say anything about the GMP test although I had queried this - so am I correct in assuming that I must have "passed" it as they have given me a quote?

MikeJones_2

Hi jakkigers,

jakkigers wrote: »

...I finally got a quote for me to take an actuarially-reduced pension at the age of 52 on 31 May 2010.

Do you have some special circumstances that will allow you to draw the pension at age 52? I mention this as with effect from 6th April 2010 the minimum pension age (for most people) will rise from 50 to 55.

Personally I'd check with the pensions admin dept and ask that they confirm you can draw the pension at that age on that date. It's possible that the quote you have received has been automatically processed using a system that hasn't been amended for the forthcoming legislation change. And, if it were me, I'd get it in writing too.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

jakkigers

Hi Mike, thanks for your response. This is something I did query and was told that I could retire at 52 in May 2010 as they weren't aware of any changes. I looked at the pensions manual (classic scheme in the civil service pension scheme) and it was updated in September 2006. It says the following:

Actuarially reduced benefits are available to members who leave the civil service before the pension age. They can opt to receive a reduced pension and reduced lump sum at age 50 or later. Note - If a member joins classic for the first time after 5 April 2006, then they will only be able to receive actuarially reduced benefits at age 55 or later.

I joined the scheme in August 1982 so am assuming that I have reserved rights to retire at 52 in May 2010.

Do you think this is correct? And I am still stumped about the GMP test!!

Naughty_Sausage

I stand by what the previous poster said about the minimum age for early retirement increasing to age 55 from April 2010. There are only a very few special exceptions and I cannot see the civil service being one of them.

Reference the GMP test, if they have provided you with a quotation then in theory you should have passed the test. However, there will be some small print on your quotation stating that it is not guaranteed and will probably be recalculated / checked before the benefits are put into payment.

I would say that the GMP check should have been completed and you should have passed - otherwise the quotation should not have been sent out to you. Remember, this test will only apply if you have pre 6 April 1997 benefits.

You really must check about the minimum retirement age thing though. For them to not know about these changes is really very poor.

NS x

jakkigers

Thanks NS, I will ask them again. Is it any wonder I want to leave the civil service - it's going to the dogs!! I asked about a month and a half ago about the changes to the earliest pension age and they didn't know anything about it - you really have to wonder!!