final salary pension 'clawback'

downshifter98

hi - I have a couple of deferred pensions (rbs and Lloyds) and at the ripe old age of 42 have finally got around to working out what they are worth (I had a rough idea) but one thing that has come up is that they could be 'integrated' pensions which apparently means that although they start at age 60, when I eventually receive state pension (at 66?) the company pensions will reduce somewhat - can any enlightened soul give me an idea how this is done - my total service at these 2 establishments was 13 years and I think the formula is based on yearly minimum NI contributions?? This pensions business is just toooo complicated.....

MikeP_5

Decent link here on this :-

http://www.emplaw.co.uk/researchfree-redirector.aspx?StartPage=data%2f011118.htm

Various attempts have been made to outlaw this practice, but AFAIK it still goes on - your best option would be to contact the scheme trustees for further guidance

EdInvestor

You may wish to also get a state pension forecast which may throw some light on the siutuation.

downshifter98

I've recently had a state pension forecast and that is on track to be the usual basic pension - so does this mean that both of these final salary pensions will reduce by the state pension when it kicks in - blimey I'm almost going to owe them money......:-(
Must admit I was hoping that they would only be able to discount the amount of state pension that was built up during the 13 years (in total) that I was in the schemes (ie each 1/60th of final salary pension is reduced - at state pension age - by, say, 1/44th of the state pension?).

EdInvestor

Is there nothing in your scheme booklet to explain the rate of clawback?If not I agree you'll have to go back to the scheme administrators and ask.