Winding Up

casey_junior

I was in a pension scheme from Oct 1989 which then closed in May 2000. It has been in wind up since then, I get a letter every year telling me that it is still progressing. The last letter included a form with all my details which I was to confirm so that they could be submitted to FAS, this included a figure of £1544 Pension at Date of Leaving.
Can I take it that this is the pension I will receive when I reach 65 next year?, or what can I expect?

casey_junior

casey_junior wrote: »

I was in a pension scheme from Oct 1989 which then closed in May 2000. It has been in wind up since then, I get a letter every year telling me that it is still progressing. The last letter included a form with all my details which I was to confirm so that they could be submitted to FAS, this included a figure of £1544 Pension at Date of Leaving.
Can I take it that this is the pension I will receive when I reach 65 next year?, or what can I expect?

Is there anybody there?

hugheskevi

Your pension should be revalued (ie uprated roughly by inflation) from Date of Leaving to the date the scheme wound-up, and then revalued to your Normal Retirement Age (65).

At that point, you receive 90% of this uprated value as FAS assistance.

Doing some rough calculations, and I emphasize rough, as without a lot more information it can't be accurate, I'd guess you will get about £3,000 p/a. But please don't rely on that in any way, as it really is approximate.

casey_junior

Well, thats just brightened up a cold, snowy windswept Ulster night, I was reckoning on less than £20pw.
Roll on next Christmas!
Thanks for that Kevin (is it?)

hugheskevi

Thanks for that Kevin (is it?)

Hehe, that's right. It is a standard username, and I miss the last letter off because the first time I used it the site I was on limited it to 10 characters.

Everyone else has assumed it is Hugh if they try to guess, so well done

casey_junior

Maybe you'd have a go at answering another post of mine, its in thread
Transfer of Section 32 Pensions
and it is post#30, sorry but I don,t know how to do links.

casey_junior

And I don't know how to do apostrophes either!

hugheskevi

If I may restart this thread, I have A NU Transfer Plan 32 taken out in early 1988 With a premium of £10123, £5159 being my own contribution and due to mature in December 2011 on my 65th birthday,if God spares me.

The with profits benefit is £38182 and the accrued bonus is £23337. There has not been any bonus added since 2001.

There is no mention in my policy document of Guaranteed Minimum Pension, only mention of Maximum Pension of £6841 excepting conditions.

When I look at the above Quote the question springs to mind "Have I been sold a pup?" What are your thoughts on this? and what pension can I realistically expect when next year comes?

This pension was in respect of my first employment 1966to 1987, my next employment was from 1987 to 2001, the pension from it being in receivership even yet. My last employment was from 2001 to 2009 when I was paid off on health grounds, there was no pension scheme and the pay was too low to afford a personal pension.I am staring a poor retirement in the face and am of the opinion that pensions are a kick in the mouth and not to be undertaken unless in secure employment. :mad:

Dunstonh gave a couple of replies to this, and his advice is always excellent - his knowledge in this area is far better than mine so I defer to him.

The only thing I would add is that in the absence of any guaranteed annuity rates and ignoring any GMP complications, the amount you can expect from this pension plan is a 25% tax free lump sum, then an annuity which if you choose a non-indexed annuity without any provision for a spouse will give you an annual income of about 7% of the pot annutised (ie 75% of the total pot value, assuming that you take a lump sum).

casey_junior

casey_junior wrote: »

I was in a pension scheme from Oct 1989 which then closed in May 2000. It has been in wind up since then, I get a letter every year telling me that it is still progressing. The last letter included a form with all my details which I was to confirm so that they could be submitted to FAS, this included a figure of £1544 Pension at Date of Leaving.
Can I take it that this is the pension I will receive when I reach 65 next year?, or what can I expect?

hugheskevi wrote: »

Your pension should be revalued (ie uprated roughly by inflation) from Date of Leaving to the date the scheme wound-up, and then revalued to your Normal Retirement Age (65).

At that point, you receive 90% of this uprated value as FAS assistance.

Doing some rough calculations, and I emphasize rough, as without a lot more information it can't be accurate, I'd guess you will get about £3,000 p/a. But please don't rely on that in any way, as it really is approximate.

I've just received another correspondence from the Trustees of my pension to advise me that it is still in wind up. They have provided some info confirming that the scheme has been accepted by FAS, and give some general details re benefits.They say that the core pension is revalued up to normal retirement date by 5% or the RPI if less. They then go on to say that "assistance in respect of benefits accrued after 6 April 1997 will increase in payment in line with RPI, subject to a maximum of 2.5% "
Why are these figures at odds with each other?

As I am not employed having been paid off due to ill health last year I would be grateful if someone could put a rough figure on what pension I could expect to receive if I applied for ill health payment now as against what I would get when I reach 65 in late December 2011.

hugheskevi

Why are these figures at odds with each other?

The first figure refers to revaluation, ie how the pension amount increases before it comes into payment, whilst the second describes how the pension increases after it has started to be paid out (indexation).

As I am not employed having been paid off due to ill health last year I would be grateful if someone could put a rough figure on what pension I could expect to receive if I applied for ill health payment now as against what I would get when I reach 65 in late December 2011.

If you qualified for early payment on ill health grounds, what you get would be dependent upon exactly how ill you are. Unlike the Pension Protection Fund and private pensions, to get FAS paid early you have to qualify for an ill-health payment.

If you are severly ill, the payment is not reduced at all. If you are not severely ill, it would be reduced by 2.5%, based on these tables.

That 2.5% doesn't look like much of a reduction, but remember that because revaluation of FAS is much more generous than indexation of FAS, taking it a year early means you exchange one year of revaluation for one year of indexation, which makes the actuarial reduction lower.

casey_junior

hugheskevi wrote: »

Your pension should be revalued (ie uprated roughly by inflation) from Date of Leaving to the date the scheme wound-up, and then revalued to your Normal Retirement Age (65).

At that point, you receive 90% of this uprated value as FAS assistance.

Doing some rough calculations, and I emphasize rough, as without a lot more information it can't be accurate, I'd guess you will get about £3,000 p/a. But please don't rely on that in any way, as it really is approximate.

Way, way off, Kev, £1972.29 I've heard today.
Starvation Once Again.