EPB Pension - Lloyds Bank

Chocdot

£0.72 p.a.!! I recently received notification from Lloyds Bank of my pension relating to 16 months employment between 1975/6. It is referred to as a Graduated Pension/Equivalent Pension benefit and amounts to £10.23 lump sum or 72p p.year. Am I right to be surprised? Surely such a sum invested over 38 years would yield a decent pot? Should I query this?

greenglide

It would depend how much you paid in. If only 16 months you can't have paid much and this would have been at the very beginning of your working life.

This was around about when fixed rate NI contributions (NI "Stamps") and the Graduated Pensions scheme ended and there was a gap before the SERPS scheme started.

If this was getting you the same as the Graduated Pension scheme gave you it was never much - my accrued Grad, payable in 2016 is about £5 a week after being in the scheme from 1972 until its end in 1975.

You need to ask the Lloyds Bank scheme for details.

See this http://boards.fool.co.uk/smudgebutt-prior-to-6475-there-was-no-11569822.aspx .

I never knew you could contract out of the Graduated Pension scheme!

kidmugsy

I'd take the lump sum if I were you.

PensionTech

The graduated scheme (and hence contracting out of it) finished on 6/4/75 - so you've probably only actually got a couple of months' accrual of EPB.

EPBs are notoriously tiny because they weren't indexed to keep up with inflation. It's not the type of benefit that gets invested for you either. Nothing you can do really but take the lump sum!

Seabee42

The EPB benefit is largely rubbish but it is usually what's left after someone has taken a refund of contributions.

It also comes from a time when there was no requirement to increase any pensions in deferment.

geelamch

Take %25 as a lump then you could drawdown with remainder !

Freecall

kidmugsy wrote: »

I'd take the lump sum if I were you.

Don't squander your long term financial future just for a Lamborghini now.

:beer:

PensionTech

Slightly out of price range I think...

http://www.argos.co.uk/static/Product/partNumber/9075672.htm

Freecall

PensionTech wrote: »

Slightly out of price range I think...

http://www.argos.co.uk/static/Product/partNumber/9075672.htm

Damn!