M&S Pension Scheme

Blanc

Finst wrote: »

Again, some thoughts in no particular order:

- The DB pension shouldn't change for options 2-4, but under option 2 its £8600 pa and under options 3/4 its £8800 pa. Could you have read this off the chart wrong? (Sorry looks like I did, all the same DB benefits)

- You can now take DC pension benefits as cash instead of buying an annuity (income for life). They are saying you could have a cash sum of £24k, OR a pension of £1k pa for the rest of your life (under option 1). It a personal choice, one gives more security (pension), the other gives more flexibility (cash). You don't have to decide now.

- For every £1 you put into the DC pension scheme of your own salary (up to 6%), M&S are going to put in £2. Given when you retire you can take this money as a lump sum, if you can afford it in the short term it makes sense to pay in the full 6% (free money!)

- I think you've made a very smart point in saying that you could use the cash supplement (basically compensation for closing the pension scheme) to pay the cost of joining the DC scheme. Especially as M&S will triple whatever you put in. Once the cash supplement finishes in 2019, that might be a sensible time to look at retiring?

( I wish I came up with this, It was suggested in the pack).

Thank you again for your help.

Blanc

xylophone wrote: »

As M&S proposes these changes, are they not also offering to assist with independent financial advice for all those affected?

They should at the very least be offering group seminars to explain the proposals - are you a member of a union?

M&S not offering to assist with independent financial, they believe the pack is sufficient information. M&S do not recognise unions, we have a "BIG" team in store to represent staff, unfortunately our "BIG REP" recognises that he has not got the qualifications or knowledge to deal with pensions). I am in a union and have contacted them for support).

Are you intending to work for M&S until you are 60?


(Yes, plan to work to 60, hopefully to go part time then or sooner, dependant on what is financially best for me).

If so, and the proposals go ahead, you will become a deferred member of the DB Scheme in 2017 - the pension will revalue in deferment.

If you are continuing to work for the company then it seems to me ( but this a a personal decision which depends on your circumstances) to make sense to join the DC Scheme - the effect of the "supplement" would be to give you a "non contributory" DC pension up to age 58?

You might prefer to contribute the additional 3% yourself for the year 18-19 and then the full 6% up to age 60?

At age 60, you would draw your revalued DB pension and you would have a choice of how to take your DC pension which will be additional to your DB pension. Rather than taking a regular pension of (say) £80 a month for as long as you live, you might choose to take the DC pension as a lump sum.

M&S are suggesting that depending on how much is contributed to the DC plan, that sum could be somewhere between around £11,000 and £25,000.

If I were in that situation, and assuming that the DB pension ended up at say £10,000 a year, and that by that stage the Personal Allowance had reached say, £12,500, I think that I would prefer to transfer the DC pension to a drawdown pension, take a 25% lump sum and then drawdown as much as kept me a non tax payer up to drawing the state pension.

With regard to the state pension, you will not be contracted out from the start of this tax year, so will be working off your "rebate derived amount" and building up new state pension.

At age 60 when you retire, you would check with DWP how close you were to a full New State Pension and so whether it was worth your while to pay voluntary contributions.

Thank you again for your help.

atush

Blanc wrote: »

I believe they will contribute 6%.
It has yet to be confirmed but if I contribute 6% they will contribute 12% , awaiting my proposal pack for more information.

6+12 is a great deal, grab it with both hands

Blanc

Hi everyone, I just want to thank everyone for their advice. My concerns have been sided lined due to myself been admitted to hospital with pains in my chest, further investigations due since having a stress test done, awaiting a dye test. To say the least I was taken aback and scared. Anyway I need to admit I had myself stressed out since and don't want the day to day work stresses. Now what to do, for the best, I just don't know. I am so confused, uncertain and scared.(family history of heart problems). Sorry for divulging this, wasn't my intentions. A lot of thinking to do.

xylophone

Is there any chance that you can access an immediate unreduced pension on grounds of ill health?

https://www.mandspensionscheme.com/en/active-members/taking-my-pension/ill-health-retirement