Company Pension Statements

DollyDee_2

Hello

I am asking this question on behalf of my sister. I'm not that au fait with pensions so please forgive me if my terminology isn't correct.

My sister started work at a company in 1978 and joined the pensions scheme at the next available date - April 1979. It was a condition of employment that everyone joined the pension scheme. That bit is probably irrelevant.

She left in January 1993 so her pension is frozen/deferred.

She was born in August 1951 so is in receipt of her State Pension although it was deferred for a short time because of the change in State Pension age.

She never receives a yearly pension statement from the company scheme - is that allowed?

She has phoned the pension "people" to enquire about the value and been told "it's still the same". She also enquired a couple of times if she could take her pension but was told "not until you are 65". I/We understand that as it would be at the discretion of the Trustees (if I/we are correct) but I cannot understand why she does not get a yearly statement.

Could anyone confirm whether she should receive statements please?

Thank you

D

xylophone

She never receives a yearly pension statement from the company scheme - is that allowed?

I am not sure that it is compulsory to provide them - certainly I know of one scheme where the deferred pensioner was given a letter on leaving and just told to keep the administrator up to date with any change of address but otherwise to claim the pension when it fell due.

dunstonh

She never receives a yearly pension statement from the company scheme - is that allowed?

Once she ceases to be an active member, then she would no longer get an annual benefits statement as no further benefits are being accrued. The final one would suffice.

She has phoned the pension "people" to enquire about the value and been told "it's still the same".

It is possible there is miscommunication here. The type of pension doesnt have a value. It has a selection of defined benefits and as she is no longer an active member, those benefits remain the same as when she left employment, albeit increased for inflation.

Could anyone confirm whether she should receive statements please?

With money purchase schemes it is a requirement. With defined benefit schemes it is not once you cease to be an active member as there is nothing to update you with.

DollyDee_2

I see - thank you for your replies. I will pass the info on.

Dolly

sandsy

She doesn't have a value because she has something much more valuable - a promise of an income based on her salary at the date she left. As that salary is now historic and doesn't change, no need for updates.

Having said that, by the time she reaches the scheme's pension age, there may be some revaluation of the historic income promised to take account of inflation in the interim, but this figure won't be available until the income payments are due to start.