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Has the flat rate pension been delayed or killed?
Comments
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In 2009, my wife had "Payable Additional Pension" of 43p. By 2010, they'd decided to drop this to 0p.
How it can it backwards?
Payable Additional Pension is the result of sum taking gross additional pension (what you would get if you had never been contracted out) less contracted-out deductions.
Gross additional pension will increase by earnings prior to coming into payment. The contracted-out deduction can increase by one of 3 methods (see this link for painful detail - a pdf, it is safe to download, form Parliament.uk site).
So any of a number of things can happen - you can even start off retirement with nil additional pension, and become entitled to a small amount after 5-10 years
In some particularly harsh circumstances, you could have one spell of contracted-out employment which resulted in a negative net additional pension and then have a spell of contracted-in employment during which you accrue less than the negative net additional pension, and overall you would get...nothing, despite having worked in a contracted-in job.
Bizarre and bonkers system when you get into the finer details :eek:0 -
Most likely is she was in a contracted-out occupational scheme which she left. These usually then uprate the GMP by a fixed percentage which is usually higher than inflation. The GMP is then deducted from the additional pension, so it can go down (but the GMP will go up at the same rate so usually no net loss - though there can be in some cases).gadgetmind wrote: »In 2009, my wife had "Payable Additional Pension" of 43p. By 2010, they'd decided to drop this to 0p.
How it can it backwards?
I'm trying to work out why mine has gone down between 2008 and 2010, because that didn't apply to me. I had no deferred occupational pension at the time. Even the increased pension age doesn't explain it.0 -
Most likely is she was in a contracted-out occupational scheme which she left.
Neither of us have ever had occupational pensions nor worked in the public sector, which is something we're proud of even if it has hurt income and pensions.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Neither of us have ever had occupational pensions nor worked in the public sector, which is something we're proud of even if it has hurt income and pensions.
Why would this make you proud?
You make it sound like it is wrong.0 -
Interesting - was she contracted out into a personal pension?gadgetmind wrote: »Neither of us have ever had occupational pensions nor worked in the public sector, which is something we're proud of even if it has hurt income and pensions.
Though as I understand it the COD is always equal to the AP for contracted out personal pensions, up until state pension age anyway.0 -
Neither of us have ever had occupational pensions nor worked in the public sector, which is something we're proud of
Why?
Should people who have occupational pensions or have worked in the public sector feel ashamed?0 -
I've been an active member of final salary schemes continuously since 1984, and still am. My recent state pension forecast has an Additional State Pension of £3.43 a week, which is about a pound or so less than last time I got a forecast. Unfortunately I've shredded the old one so I don't know exactly how much it went down. Note that all the benefits of my earlier FS scheme were transferred to my current scheme, so I'm not a deferred member of any scheme.0
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Interesting - was she contracted out into a personal pension?
Not during the period in question as she hasn't worked for 18 years.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Should people who have occupational pensions or have worked in the public sector feel ashamed?
I wouldn't go quite that far.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Unfortunately I've shredded the old one so I don't know exactly how much it went down.
I keep electronic copies of all such things, by scanning them if necessary.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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