Water industry pension release

woolly_wombat

xylophone wrote: »

The Fixed Rate is on the total GMP at date of leaving the scheme.

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

Ah yes, so just 7.5% pa revaluation on the entire GMP up to 60.

That could still amount to a significant figure by 60.

Where the GMP is "payable" at age 60 but the scheme pension age is 65, increments are added to the GMP.

See http://www.aon.com/unitedkingdom/attachments/aon_hewitt/pa/Aon_Hewitt_GMP_Reconciliations_Jan14.PDF

"Women with a normal retirement age after 60 – Any person retiring
after GMP Age (i.e. a woman aged 62) will attract a Late Payment
Increment."

More detail here:
http://www.aviva-for-advisers.co.uk/site/public/tech-centre/tech-article-detail/section-32-arrangements-gmps-and-transferring

"For those retiring after age 60/65

The GMP is still calculated to age 60/65 at which point the requirement to revalue will cease

However, if the GMP is deferred for 7 weeks or more, the scheme must increase the GMP by 1/7% for each complete week in the deferment period. Also, any post 5 April 1988 GMP has to be increased in line with inflation up to 3% for each occurrence of 6th April after age 60/65".

xylophone

The OP was somewhat vague about when she worked for and when she left the "water company".

I assume, by the way, that the reference to post 98 GMP (in blue, post 7) is a typo for post 88 as GMPs did not accrue after 1997 (change to reference scheme test).

With regard to the "water company", I was a little surprised that back in the eighties, Scheme Retirement Age was 65 rather than 60 - age 60 whether for men or women was not uncommon in DB/FS schemes.

If she decides to go ahead,the OP will have to take advice from an IFA with the necessary permission for pension transfer - no doubt he will crunch the figures and advise accordingly - if the OP has regard to the general information in the links and her own scheme booklet and pension statements, as an ex- accountant, she should have a pretty good idea anyway.

It could simply be that as she has the LGPS pension and state pension to come, the "jam today" is more appealing in her current circumstances than "jam tomorrow".