Final Salary statement

RichandJ

gospete wrote: »

Thanks Joe.

Just to clarify. I think I understand that once I receive the pension it should be safe. What I was worried about is can market volatility during the months or days leading up to the start of the pension affect the sum ?

Peter.

Not for a final salary scheme - you get (barring any administrative calculation errors) what was in the illustration letter.

JoeCrystal

gospete wrote: »

Thanks Joe.

Just to clarify. I think I understand that once I receive the pension it should be safe. What I was worried about is can market volatility during the months or days leading up to the start of the pension affect the sum ?

Peter.

Indeed, I meant exactly what RichandJ wrote but it is always good idea to clarify. :T

Cheers

Joe

xylophone

gospete wrote: »

I have just been looking at my various copies of pension paperwork, including my 'Statement of Preserved Benefits' on leaving the scheme in August 1996.
I am puzzled by the following:
My annual benefit statements specify 'Pensionable Pay' which seemed to accurately reflect my annual salary at the time, approx £34,000 (statement date 01/01/95) and £36,500 (statement date 01/01/96) - the only statements I've kept.
However, my 'Statement of Preserved Benefits' states 'Final Pensionable Pay' at a lower figure of approx £30,000.
Could the latter FPP be a pro-rata figure for the final year ? or do PP and FPP mean different things ?

If it is anything like the scheme with which I am most familiar, 'pay' does not necessarily equate to 'pensionable' pay - for example, one off bonuses are not pensionable.

With regard to your question about the stockmarket turmoil, as you have a defined benefits pension, this will not directly affect you - you will receive the benefits that you have been quoted (assuming that there has not been an error in computation....) - I don't imagine this is too common?
https://forums.moneysavingexpert.com/discussion/3741935

Incidentally, check out the GMP rules with your scheme (increases after state pension kicks in).