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

RickyB2000

As I read it, the value used in this case to determine how much the pot is worth is 20x the defined benefit salary. So £455 X 20 or about £9k. Need to add the tax free lump sum if not included in the £455. Doesn't mean you will get this, just this is the contribution towards the £30k of this particular pension.

If the pot was less than £10k, then you could have received it as a small pension and not had to worry about the £30k rule......

OldBeanz

Why not transfer it out and then cash it in?

brewerdave

OldBeanz wrote: »

Why not transfer it out and then cash it in?

...because presumably, Tesco will require an IFA to certify the transfer out as they say it exceeds the £30k limit ???

Mayday

Tesco Pensions know all about the two previous payouts as they were informed at the time.

When I received my Pension statement from them [after waiting 5 months for it] I was offered the option of taking the lot out as a lump sum subject to tax, which is what I want to do - as I assumed I could do under the new Pension freedoms/regulations, etc.

OldBeanz

If they say it is worth more than £30k then it is worth transferring and paying to have it transferred if only paying £450pa. If Tesco are refusing payment because they have misinterpreted the triviality amounts then that will become apparent. So either way matters would come to a head.
On another thread I was told a DB could not be cashed-in but only transferred.
Good luck either way. My wife had a similar pension to you and we transferred it and the level of service by the pension people was astonishingly bad. Time delays and an AVC was ignored which Standard Life would not release until Tesco finally accepted it was held through them.

xylophone

Ask for an explanation in writing from the Administrator of the Scheme.

TPAS can help.

http://www.pensionsadvisoryservice.org.uk/pension-problems

Mayday

Thanks everyone for all advice - strongly getting the feeling that Tesco Pensions don't want to pay out as there isn't any money left to pay out ! It used to be one of the best schemes around

Will also ask the TPAS - thanks for the tip.

hyubh

Mayday wrote: »

It closed long before that.

The Tesco final salary scheme closed a few years back, replaced with a career average version. The CARE version itself (and so, Tesco DB pensions as such) closed only a few months ago.

strongly getting the feeling that Tesco Pensions don't want to pay out as there isn't any money left to pay out

Hardly - crystallising pension liabilities will in general be a good thing from the scheme (and sponsoring employer's) point of view, so the more the merrier (within the bounds of cashflow practicalities).

dunstonh

Thanks everyone for all advice - strongly getting the feeling that Tesco Pensions don't want to pay out as there isn't any money left to pay out ! It used to be one of the best schemes around

It was a great scheme and its still fine. At its height they even matched contributions on the in-house AVC. However, the transaction you are wanting to do will actually reduce their liabilities.

Can you confirm if the £455 p.a. is after the tax free lump sum?
Has the £455 p.a been adjusted to reflect todays terms or is it the historical figure when you left them that has not yet been adjusted for inflation? (i.e. if you left them 10 years ago and the £455 was the last benefit statement figure then it will be more than £455 paid on retirement)

Mayday

The £455 pa pension was stated in their letter to me yesterday. It would be my full pension without taking the tax free cash lump sum.