Deferred Final Salary Scheme statement no longer showing GMP

zagfles

xylophone wrote: »

Then you will reach state pension age in around 2025?

The single tier legislation has now been passed.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

Your deferred pension is revaluing in deferment - I would imagine that the National Grid would use "full rate" but you could check this. http://www.barnett-waddingham.co.uk/news/2012/07/revaluation-for-early-leavers/

It would seem that most of your pension consists of pre 88 GMP - the worst case scenario would be that once it came into payment, you would see no increase on that part of your pension at all.

It entirely depends on whether or not the Scheme will take over the obligation - you would have to make a formal enquiry of the Trustees?

It's strange that the OP's statement says the deferred pension will increase in line with RPI - since the GMP should either increase in line with earnings "section 148", not RPI, or use fixed revaluation. Up to GMP age, which the OP is well below.

xylophone

It's strange that the OP's statement says the deferred pension will increase in line with RPI - since the GMP should either increase in line with earnings "section 148", not RPI, or use fixed revaluation. Up to GMP age, which the OP is well below.

It is not clear which method NG uses - I'd have guessed full rate as a former nationalised industry, but perhaps not

https://www.nationalgridpensions.com/409/729/pension-increases

'The Guaranteed Minimum Pension part of your pension is not exactly equal to the additional pension. Because of the way the Scheme revalues, or increases the GMP between your retirement from the Scheme and your state pension age, you may receive a bigger increase to your Scheme pension when you reach state pension age."

Of course, if fixed rate were used, then even under the current arrangements, the OP could well have found that there would have been no increase on her pre88 GMP from scheme or state once she reached GMP/SPA age because her COD could well have been greater than her pre97 ASP.

Really only the Scheme Trustees/Administrators can clarify the matter for the OP?

outoffunds

Well I asked the pension administrator's about GMP increases.

The reply was that the scheme will pay the annual increase on the total pension until I reach my GMP age which is 65. Under the current scheme rules there would be no increase in pre 1988 pension once I reach GMP age. Upto 3% of CPI for Post 88 GMP and any excess at RPI.

They say they are not aware that the government will stop paying increases on the GMP element of pensions as they have not yet provided details of their intentions.

xylophone

They say they are not aware that the government will stop paying increases on the GMP element of pensions as they have not yet provided details of their intentions.

http://www.thisismoney.co.uk/money/pensions/article-2634215/Why-millions-WONT-155-new-state-pension-theyre-expecting.html

https://www.whatdotheyknow.com/request/loss_of_increases_on_gmp_when_si

Oblivion

xylophone wrote: »

http://www.thisismoney.co.uk/money/pensions/article-2634215/Why-millions-WONT-155-new-state-pension-theyre-expecting.html

https://www.whatdotheyknow.com/request/loss_of_increases_on_gmp_when_si

The way I read that first article it seemed to imply that only people reaching SPA on or after April 2016 will lose out, but if the government really are saying that it was all a misunderstanding and they are not liable to pay the GMP element of increases, won't that also affect pensions already in payment?

I'm in the frustrating position of simply not knowing if I'll get paid or not. I've been in receipt of my Local Government pension for several years now and because I reached SPA in March this year my Local Authority only paid 2.33% of the April increase instead of the 2.7% awarded saying the DWP were responsible for the balance of just over £80. Because I've only just started on state pension, I have no previous figures with which to compare, but there's nothing on my award letter from the DWP that appears to cover this shortfall.

I've now written to the DWP twice and am still awaiting an answer, but I have a nasty feeling about this.

greenglide

The way I read that first article it seemed to imply that only people reaching SPA on or after April 2016 will lose out, but if the government really are saying that it was all a misunderstanding and they are not liable to pay the GMP element of increases, won't that also affect pensions already in payment?

State Pensions already in payment (ie claimant achieves SPA on or before 5/4/2016) are not impacted by this change - even if they defer and receive the actual payments later.

The inflation proofing is done by DWP by the difference between the COD and the GMP. When STP comes along on 6/4/2016 there will be no GMP or COD components of the State Pension so the inflation proofing will be lost for the STP pensioners.

So in your case it will make no difference.

xylophone

I reached SPA in March this year my Local Authority only paid 2.33% of the April increase instead of the 2.7% awarded saying the DWP were responsible for the balance of just over £80. Because I've only just started on state pension, I have no previous figures with which to compare, but there's nothing on my award letter from the DWP that appears to cover this shortfall.

You have received a statement from the DWP which lists State Pension, pre 97 Additional State Pension etc? https://forums.moneysavingexpert.com/discussion/comment/60319901#Comment_60319901 see post 18

And a letter from LGPS detailing your pre 88 GMP and post 88 GMP? See post 33 here https://forums.moneysavingexpert.com/discussion/4532605

The difference between your pre 97 Additional State Pension and your COD is what will be uprated by CPI (not by the triple link).

The pre 88 element is increased wholly by the DWP. The post 88 element is increased up to 3% CPI by the Scheme, anything over by the DWP.

You will not be affected by single tier.

Oblivion

xylophone wrote: »

You have received a statement from the DWP which lists State Pension, pre 97 Additional State Pension etc?



And a letter from LGPS detailing your pre 88 GMP and post 88 GMP? See post 33 here https://forums.moneysavingexpert.com/discussion/4532605

I received the DWP entitlement letter but I haven't ever received the LGPS letter you refer to. I shall need to chase this up.