Trying to get hold of my Tesco pension pot ...........

Mayday

I am trying to withdraw my apx. £10,500 pension pot from Tesco Pensions but am being stymied by - and I quote:

"We have calculated your benefits to be more than £30,000 which is above the trivial commutation limit and so we are unable to pay your benefits as a once only cash sum"

I maybe having a senior moment, but where does this £30,000 come in the equation? I've been searching for an explanation online and got nowhere.

Answers on a postcard, please

LXdaddy

Postcards take a long time (and you didn't supply a snailmail address).


In the meantime you might find http://forums.moneysavingexpert.com/showpost.php?p=70422537&postcount=5 and it's thread useful.


I'll let the experts help you but the £30,000 is a limit for "small pots". Small pots can be converted into cash as a one time transaction.

Linton

Isnt Tesco a Defined Benefit (final salary) pension? If so:
1) what is the £10500? Is it the Transfer Value or the pension/year or what.
2) How old are you?
3) What is the Transfer Value and the current value of the pension/year?

xylophone

Is this a Tesco defined benefits pension? Is it currently deferred?

What is scheme Normal Retirement Age?

Are you at least 55?

See http://www.pruadviser.co.uk/content/knowledge/technical-centre/small_pots_an_defined_benefit_trivial_commutations/

dunstonh

The £30,000 is not a cash value. it is the cash equivalent value for providing the same level of benefits.

I am trying to withdraw my apx. £10,500 pension pot from Tesco Pensions

Which basically means that you are trying to get £10,500 (Before tax) to give up benefits that have a monetary value of more than £30,000. If so, that doesn't seem to be a good idea (although there are some rare justifiable reasons).

Mayday

To answer all queries:

It is a Defined Benefits pension - the scheme closed 2-3 years ago.

I am 64 and retired from Tesco in November of last year.

The £10,700 [it's gone up since I first applied to withdraw the lot] is the current value of my 'pot'

I have no other income apart from my State Pension and some interest on savings.

To receive £30,000 of 'benefits at a projected £455 pa, [according to Tesco Pensions] I'd have to live to 150!

bigadaj

Mayday wrote: »

To answer all queries:

It is a Defined Benefits pension - the scheme closed 2-3 years ago.

I am 64 and retired from Tesco in November of last year.

The £10,700 [it's gone up since I first applied to withdraw the lot] is the current value of my 'pot'

I have no other income apart from my State Pension and some interest on savings.

To receive £30,000 of 'benefits at a projected £455 pa, [according to Tesco Pensions] I'd have to live to 150!

Are you saying that your pension is £455 per year, you don't have a pot though you may have been quoted a cetv sum that equates to a value of the pension should you want to move it to a dc scheme.

Depending on the terms of the pension, and things such as inflation proofing, survivor benefits, your age etc then a pension of that sum would probably require an annuity currently of around £15000 so it seems odd that this is assumed to be valued at over £30k.

ScottyLP

Do you have any other pensions (other than state pension)? They also get included in the equation

xylophone

According to this https://www.ourtesco.com/our-benefits/tesco-benefits/pensions/ the DB Scheme closed only four months ago.

Do you mean that you left Tesco at state retirement age and have now reached the age when your deferred pension becomes payable in full?

What is the CETV?

Mayday

ScottyLP wrote: »

Do you have any other pensions (other than state pension)? They also get included in the equation

No - only my State Pension as already stated.

Mayday

xylophone wrote: »

According to this https://www.ourtesco.com/our-benefits/tesco-benefits/pensions/ the DB Scheme closed only four months ago.

Do you mean that you left Tesco at state retirement age and have now reached the age when your deferred pension becomes payable in full?

What is the CETV?

It closed long before that. I retired from Tesco last November after 6 years employment at age 63 and 7 months.

Excuse my ignorance, but what is CETV?