claiming back minimal contribuitions to a company pension

johnnycondom

SIPP ? whats that an acronym for

fiesta04

Hold on now, if your R/R was a Final Salary Scheme it still is This needs to be checked out as it could be worth a lot to you.

F4

fiesta04

SIPP stands for Self Invested Pension Plan.

F4

jamesd

You could transfer half of it to another personal pension then use triviality on both of them.

If the R/R scheme was final salary it still is and all the 105k is the transfer value if you were to transfer it. It would be a bad idea to transfer a final salary scheme in almost all cases. the exceptions involve things like people who have unusually short life expectancy or, less often, no spouse but who are in a plan with generous benefits for a spouse that increase the transfer value. Best to get in touch with them and find out what type it is. Chances are that you'll get a good deal more than an annuity would pay out!

johnnycondom

hi again guys
looking at the last RR statement forecast from july 2011 it says on retirement age i would recieve £2200 p/a
cash to wife if i die before 65 £8800
pension to wife if i die age 65 and over£825 p/a

when i tried the annuity screen scraper it said
legal and gen would let me have £26,250 lump sum and still pay me£200 pcm rpi linked for 10 years guaranteed from the age of 60.what happens after 10 years i dread to think.also im not looking for a pension for the wife as shes got a better one than me when she gets there.moreover im looking to see what my options can be if im made redundant as im struggling a little on my feet at the min (not life threatening though) and theres a possibility i may have to jack it in as my job involves standing on my feet all day
any advice as always will be recieved with thanks

jamesd

10 years guarantee just means that if you die within the first ten years it'll pay out at the full you alive rate for that long. It's a cheap bit of protection for a spouse if you happen to be hit by a bus six months after taking it out.

What happens after those ten years depends on the type of annuity. A single life annuity would vanish. One with spousal benefit would drop to the level set for the spouse, often 66% or 50%.

Since your wife has a good pension of her own, a single life annuity in your own name even with no guarantee might well be the best choice.

Next choice is inflation linking. RPI inflation linking is good if you live an unusually long life but cuts your initial income a lot. It's also a less competitive market and that also tends to lower payout rates. 3% instead of RPI gets you more than RPI initially and still provides decent protection from inflation if you live to normal age. Level annuities pay out the most initially and suffer badly to inflation if you live longer than average but they are also the most popular type.

Level can work really well for people who will have a state pension later, so they start out with the higher initial level rate than have the state pension help out later.

Here are some examples for a 60 year old man in good health (payouts for those who have medical conditions that reduce life expectancy are higher), all based on how much income a £100,000 pot could buy:

£2954: RPI inflation, single life, five year guarantee
£3519: 3% inflation, single life, five year guarantee
£5158: level payout, single life, five year guarantee
£5175: level payout, single life, no guarantee

I'm still unclear about the type of scheme that the RR one is.

xylophone

I'm still unclear about the type of scheme that the RR one is.

http://www.cookham.com/community/equitable/finalsalaryr.htm

"Name: Rolls Royce-3 schemes
Location: Derby, Bristol, Glasgow, East Kilbride, Coventry, Lancashire and Sunderland.
Aerospace Manufacturer
Employees/Deferred/pensioners 119,054 active, current, and deferred members across the three schemes
Windup: Planning to close to new employees
Fund:
Comments: April 2006 - Rolls-Royce are offering to pump £500m into pension fund in return for closing final salary schemes to new members. The jet engines maker said it had started a round of consultations with its three UK pension funds in order to address the group’s total reported pension deficit, which stood at £1.3 billion in December 2005. Rolls will also increase the level of contributions as part of attempts to reduce the shortfall. One scheme has been closed to new employees since 1999.
May 2007: All UK defined-benefit schemes have been closed to new employees, with effect from 1 April 2007 and replaced by a defined-contribution scheme. As part of the discussions, Rolls-Royce agreed to inject a total of 500 mln stg into its UK pension fund, the majority of which is subject to agreement with the trustees on changes in investment strategy. The group will increase the lump sum employees can take on retirement, in line with changes in HM Revenue & Customs practice, and will apply a 2 pct discretionary increase to pensions that do not benefit from any guaranteed increase, it said. These changes will account for approximately 140 mln stg of the cash injection, and will be recorded as a one-off charge in 2007, the remaining 360 mln stg will be used to reduce the group's UK pension scheme deficit, which stood at 665 mln stg at the end of 2006."

The OP seems to have left RR in around 1992 so he is a deferred member of the FS scheme that closed in 1999?

That said, the annual pension offered seems rather low? But perhaps he wasn't employed for very long or was on a lowish salary.

The OP might find this http://www.guardian.co.uk/money/2011/mar/05/pensions-final-salary-scheme of interest.

Also this http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/revaluation

OP have you obtained a State Pension Forecast? https://secure.thepensionservice.gov.uk/statepensionforecast/default.aspx

johnnycondom

hi yet again
in reply to xylphone.i joined the pension scheme in april 1978 buying in at the higher 5% contributions as against the standard 3% also buying a couple of avc's and remained a member until may 92 when the whole site closed down.in 92 i think the basic annual wage was about £13500 with regular o/t and very good shift allowance so i suppose it could have hovvered around17/18 k a year.that said i too think what im being told i'll get is rather poor for a 101k plus pot with as yet no lump sum.ive e mailed them for a current pot update and asked if i can add the stranded pot (if im made redundant) to it.i await their reply

johnnycondom

ps xylophone
i have indeed had a state pension forecast.last year infact and i always paid serps naver contracted out as i saw it as a maggie t con trick AND was proved right in the end as a lot of folk contracted back in later
anyway they said i'd get£125 p/w(breakdown being..£102 bsp..additional serps £20 and graduated ret benefit £2.50).also i dont need advice on the govt pension as thats what my wife does for the govt.she's an expert on that
this tory coalition hotchpot want to make it £140 p/w for everyone by the time im 65 .what ill get for serps on top who knows

xylophone

I do not think you will be able to transfer into your deferred FS pension.
I assume you were contracted out when you were in the FS scheme?( Your scheme booklet should tell you).

You would need an IFA to sign off any transfer out of your deferred FS scheme and you might well not find one who'd agree to to it. http://www.thechurn.co.uk/final-salary-churn-case-study/

Did you contribute to other pension schemes between 1992 and 2011?