company pension contribution

GunJack

it seems to me that people are pretty much ignoring the investment potential of the £100k ls when the current pension is taken @ 60, surely that would make up for the actuarial reduction, and better to have it in your own bank if the company's future (along with the pension scheme) is debatable?

jamesd

Assuming that the lump sum is reduced by the same 12% as the income, that £100,000 will grow to £113,636 by waiting the two years until NRA. Without taking any conventional investment risk.

The PPF protects against the majority of the risk from the pension scheme. The company change risk has no direct effect on it, though it can affect how much catching up payments are made by the current or new owner as part off the deal. In a takeover of a company with a lot of pension scheme members the Pensions regulator as well as the pension trustees will often pay attention to negotiating suitable contributions into the pension scheme. This isn't a perfect process, far from it as BHS has demonstrated so far, but that story isn't over yet.

[Deleted User]

Hello all,
I would like to thank everyone for the input. My original query re contribution limit has been answered ie no additional restrictions on contributions to new dc pension whilst in receipt of db pension.
I shall give all the options deep thought, rather than decide on emotional basis.
Thanks again,
Billy

[Deleted User]

Hello again all,
As I have already stated, if I take the db pension early, it is subject to a large reduction (circa 12%). I am considering an appeal against the severity of this penalty. Could anyone please suggest how I am to proceed with appeal.
The understand penalty is set by the trustees of the fund, but I am unable to find a method of contact. Where do I begin,
thanks again,
Billy

MrRee_2

Hi, your situation pretty much reflects mine!!

The penalty is a GAD Factor and set by the Government Actuary Department.

I am considering taking 2 years early and being hit with about 10% loss. I have worked out that this will take 20 years roughly to make taking early a bad financial option.

Unless I'm missing something?!

kidmugsy

jamesd wrote: »

The inflation linking in the PPF varies, lots will be at CPI.

CPI capped at 2.5% p.a., and for me only on a small part of my years of membership of the scheme: that's hugely inferior to my current CPI uncapped, on all my years of membership. As I say, my widow's pension would be very rudely treated indeed.

kidmugsy

MrRee wrote: »

Unless I'm missing something?!

You're missing inflation.

LXdaddy

kidmugsy wrote: »

You're missing inflation.

Yes we all miss inflation. She was great wasn't she? We had some fun when she was at her "most rampant" gettit eh? Typical pay rises of 10% heady days indeed.

I'll get my coat.