Deferred pension question

xylophone

Then in retirement there are no increases (as you have them paid by the state directly).

People retiring under the current state pension system who have had deferred pensions revaluing by fixed rate can find this is not the case.

They find that on reaching state pension age that their COD (the revalued GMP) exceeds the pre 97 ASP - they can receive no inflation related increase on their pre 88 GMP and nothing above 3% on their post 88 GMP until the ASP (which revalues yearly by CPI, formerly RPI,) exceeds the COD.

For a pensioner the whole of whose GMP relates to pre 88 employment, this means that they see no increase on the GMP part of their Scheme pension for a number of years since only the non GMP part of the pension will be inflation linked under Scheme rules.

xylophone

The OP left the scheme in 1985.


The rules for revaluing excess over GMP are here


http://www.barnett-waddingham.co.uk/news/2012/07/revaluation-for-early-leavers/



Date of leaving
Revaluation
Before 1 January 1986
No revaluation on benefits in excess of GMP.

This would seem to indicate that the OP will receive the revalued GMP plus the original excess only when she comes to draw the pension?

kidmugsy

Oh for heaven's sake will someone please kill off this whole pensions farrago? How the devil is anyone expected to make rational decisions when even the simplest problems get caught in a web of complications, explained in glutinously incomprehensible English?

Come to think of it, I suppose defined contribution pensions and personal pensions (including SIPPS) are the simplifications required. It's just a pity that employers and employees contribute so little to them.

xylophone

caught in a web of complications,

Unfortunately the situation for people with GMPs is complex.

dunstonh

Oh for heaven's sake will someone please kill off this whole pensions farrago? How the devil is anyone expected to make rational decisions when even the simplest problems get caught in a web of complications, explained in glutinously incomprehensible English?

Pension simplification went some of the way of doing that but the early goals of really simplifying it were lost when it was realised that you can't just abolish things overnight and apply the changes retrospectively. You have to allow them to be phased out over time.

xylophone

You have to allow them to be phased out over time.

Exactly so and it should be remembered that GMP rules apply to those employed between 1978 and 1997 - they'll be around for a long time yet.

lorryw

I have just received a reply to my letter to the AA. No explanation, simply confirmation that the amount of pension I will receive IS £2786.70 not £501 as previously quoted.
Thank goodness I found the letter from 1986!

kidmugsy

lorryw wrote: »

I have just received a reply to my letter to the AA. No explanation,...

As my wife approached sixty, it took her Final Salary scheme five goes to get her statement of deferred pension right. Or, to be more precise, after five goes they stopped changing it.

She gets roughly the same annual pension as you. Maybe they have a magic fall-back number for cases where they are baffled themselves?

atush

lorryw wrote: »

I have just received a reply to my letter to the AA. No explanation, simply confirmation that the amount of pension I will receive IS £2786.70 not £501 as previously quoted.
Thank goodness I found the letter from 1986!

Excellent news!!

And just think what would have happened if you lost that letter. Remember this next time someone calls you a hoarder.