Lost Contracted Out Pension

alan0707

When I turned 65 I was informed by state pension I was due my contracted out pension and should get in touch with my private pension provider.This I did sending them the info provided by the state pension people but it seems as my pension scheme went bust they do not have to take account of any contracted out payments.Just wondering if I have any come back on this ?

PensionTech

What was your pension scheme? Did it enter the Pension Protection Fund?

xylophone

https://forums.moneysavingexpert.com/discussion/comment/69047800#Comment_69047800

As far as I understand it from your previous posts you were in two contracted out schemes and you drew these pensions well before state pension age.

Your private pensions include the Guaranteed Minimum Pension (as previously explained) which equate to the Contracted Out Deduction.

When you reached age 65, were you not contacted by the Administrators of your private schemes with information concerning your pre 88 GMP, post 88 GMP and excess and an explanation of how your pensions would be index linked in future?

alan0707

I took my private pension before it went bust when was 63 it is now in the PPF I also delayed taking state pension until aged 67 and that is when I was told to contact them.As far as I am aware no contact was made about pre and post GMP.Plenty about the scheme going into PPF but nothing about contracted out part of my pension.

alan0707

Just checked paper work they were to increase my pension to the GMP level at 65 but the Administration Order the Plan no longer provides increases to pensions if employment ends prior to April 1997.This was when the firm was sold and new pension scheme started we were given option to stay or move pension as it was final sal I stayed and started another pension with firm.

greenglide

increase my pension to the GMP level at 65 but the Administration Order the Plan no longer provides increases to pensions if employment ends prior to April 1997.

..... but the scheme has to pay the GMP from age 65 that is why it is "Guaranteed".

Is this scheme in the PPF? It is not at all clear.

xylophone

As far as I understand it, you were in two contracted out pension schemes and drew both these pensions before you were 65. 65 is GMP age for a man- this used to (and in your case still did) align with male state pension age.

Those pensions included the Guaranteed Minimum Pension.

Presumably your scheme index linked the whole of your pension in payment.

What normally happens is that at GMP age, the scheme administrator contacts the pensioner with details of how the scheme pension is split between pre 88 GMP, post 88 GMP and the excess.

This is to advise the pensioner that in future, the part of his scheme pension that relates to pre 88 GMP will not be index linked by the scheme and the part relating to post 88 GMP only up to 3%.

There was (and still is for pre 6 4 16 state pensions) a mechanism which provided index linking for pre 88 GMP/above 3% post 88 GMP through the state pension.

However, if the COD on your state pension statement is greater than the figure shown for pre 97 ASP, then you will not receive this index linking until the one equals or exceeds the other.

Are both your scheme pensions with the PPF?

What information have you received from PPF concerning increases on your pensions?

alan0707

Yes the scheme is in PPF.When taken my pension from Notel I took max tax free sum and £3524.64 a year.When reaching state pension age they were told my COD/GMP was £3976.60 a year I was not informed of this until last year when I decided to take state pension.When I contacted Notel to ask about this was told that under PPF rules they are not obliged to increase my pension to meet this requirement.Thanks for all your help.

alan0707

My second private pension the COD was much smaller and is with L and G they paid out.The PPF has had no contact with me all infor has been done thro Notel Pension they went into Administration 14 Jan 2009.

mgdavid

You were employed by Nortel

xylophone

Had you reached Normal Pension Age in your section of the Nortel Scheme when you started taking your pension?

http://www.nortelpensions.com/faq/normal-pension-age-ppf-compensation-cap-and-treatment-of-avcs/

http://www.pensionprotectionfund.org.uk/Pages/Compensation.aspx