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Transferred DB Pension and COD deductions
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JAG61
Posts: 67 Forumite
Please could anyone answer the following question
If you transfered a deferred DB pension which includes GMP into a PPP where it then becomes protected rights, is this GMP no longer included in the SERPS (additional State Pension) COD deductions at State Retirement age?
If you transfered a deferred DB pension which includes GMP into a PPP where it then becomes protected rights, is this GMP no longer included in the SERPS (additional State Pension) COD deductions at State Retirement age?
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Many thanks for the response Xylophone.
Reading the information is the concept of COD to provide a mechanism to ensure there is no double dipping if the person was entitlted to Pre97 ASP as a "Phantom" SERPS was still being accumulated at this time by DWP?
Does GMP equal COD?
How does DWP know they need to make this deduction at State pension age or when setting up the new foundation value for the new state pension?
Sorry for all the questions0 -
How does DWP know they need to make this deduction at State pension age or when setting up the new foundation value for the new state pension?0
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There will be a massive reconciliation exercise because of the new state pension.
https://www.gov.uk/nispi-pension-schemes-reconciliation-services
Have you obtained a state pension statement?
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/372977/cps5t-may-14-v1.1.pdf
If you type "What is the relationship between GMP and COD" into Google, you will find a link to a Parliamentary Briefing Paper SN02674.pdf which will give you an explanation.0 -
Many thanks greenglide.
This response was very helpful.
Am I right in thinking that no matter that the deferred pension which opted out of SERPS moved to a PPP. The Lower NI contribution information has been strored away - it is known. When SPA is reached or Calculations of existing Systems required for working out whether to go with the new state pension or the existing state pension for the foundation any contracted out amount will be deducted.
The DWP system's SERPS will be calculated for Pre97 and because I have have opted out I must then have the Rolls Royce GMP deducted (even though it moved) then the Barclaycard GMP deducted, so keeping it simple as I contracted out and GMP for Rolls increased by 7.5% and Barclays by 7% pa my COD will reduce my Additional Pension to a negative value and set to zero.0 -
Many thanks Xylophone
I will need to read, secure and process your information.
I did send away for something in September 14 but it may be the wrong information. I would like to secure as much information on paper prior to the reconciliation exercise.
This thread is most enlightening Thank you.0 -
And remember that GMP age for a female is still 60, even though the state pension age is not.0
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Thank you for the information posted Xylophone. It has helped a lot.
I have also established that I requested a Statement from the Future Pensions people on a BR19 form which was sent off in September.
I would imagine they are very busy but hope it will arrive soon.
As the system uses NI contributions within it's calculations, should I be checking this information? How can I do this?
Are there any other records I should also be checking which feed the calculations?
I also need to help out my husband but I have no idea (and he wont) if he was contracted in or out. Can I find this out for him?0 -
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/391615/state-pension-changes-4.pdf
Has your husband ever been in an occupational pension scheme/had a private pension of any description?
Try HMRC NI help line?
http://www.coalesco.co.uk/new-0300-helpline-numbers-for-hmrc/#.VLRPymSsXpA0 -
Thanks Xylophone
He has been at Rolls Royce but thinks he took it all out as a lump sum when he left. (He was 23).
Went to college to retrain so earned nothing.
Worked for many years at Lucas Aerospace - just pulled old paperwork and found GMP. This moved on a QROPS 10/12/2014 due to an Enhanced Value offer.0
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