Is this a scam????

putchboxer

I'm unfortunately not up to speed on pensions, and need some help -so here's my query. I worked for an electricity company and paid into their pension scheme from 1983 (I was made redundant in 1996).

I received a letter from the company who deals with the Electricity Supply Pension Scheme stating when I turn 50yrs in September 2015 I would be eligible for my pension. The letter gives me the options to rec a lump sum and annual pension amount, or a higher lump sum and a smaller annual pension. I believe I'm not entitled to take the whole amount as it is a DB pension. When I've looked through this site for advice, it states if anyone is approached prior to them being 55yrs old, it is a "liberation scam". My questions are is it a scam? Where can I check to see if this is a legitimate offer.I have previously checked on the internet who is dealing with my ESPS and the company appears to check out, i have also spoken to a company employee (they have never ever emailed, phoned or txt) all correspondence have been via post. Any help would be appreciated :eek:

bigfreddiel

Phone up the pension administrators and ask.

I had a similar pension with the Pearson Group. I contacted them some 30 years after leaving the scheme (made redundant) and I found I had an index linked pension of £3,100/yr.,very nice little top up to my civil service pension.

Cheers fj

zagfles

The age at which you could take pensions used to be 50, when they changed it to 55 there was protection for those in a scheme with a contractual right to a pension at 50. So some schemes can legitimately pay the pension at 50.

See http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM03106000.htm

jem16

putchboxer wrote: »

IWhen I've looked through this site for advice, it states if anyone is approached prior to them being 55yrs old, it is a "liberation scam".

Some Defined Benefit schemes still have a protected retirement age of 50 so it's not necessarily a scam.

Pension liberation scams usually want you to transfer your pension away and then invest into some dodgy investment. They do not offer you a lump sum and an annual pension.

Phone the administrators and check but it sounds legitimate.

xylophone

http://www.enwl.co.uk/docs/ENWL-Pensions/db-member-guide

Do you have a booklet like this for your section of the scheme?

I note that reference is made to retirement from age 50 with consent so it may be that your section has a protected pension age.

Page 15 may be relevant to your situation?

"WHEN ARE DEFERRED BENEFITS PAYABLE?
At NPA, but they may be paid early without reduction in
the following circumstances:
• if you satisfy the Incapacity provisions (see page
10), or
• at age 50 if you are under 50 when you cease to be
in Service and you leave employment on grounds of
redundancy or reorganisation."

Robin9

I worked in the ESI and was able to take my pension at 54 when I was made redundant.Had I left at my request I wouldn't have been able to.Yummy

talby

I also worked in the Electricity Supply Industry for 10 years from 1985 to 1995 (CEGB and then Nuclear Electric), when I left under redundancy, and was able to take my small DB pension (£4.8k p.a.) last August at age 50 - it's managed by Mercer (and prior to that Hewitt's). As others have said up thread some earlier pension ages were protected. Some months prior to August 2014 they sent me the forms to fill in and send back (with preferences for beneficiaries if I die) and since then I've been managing it online (P40/P60 all online).