Financial Conduct Authority Certificate

xylophone

http://www.legalandgeneral.com/library/pensions/technical-information/Abolution_CO_Rights.pdf

might also be of interest - I am now wondering whether what you have was a COMB?

Does the fact that you have a note on your file indicate a letter from the administrator at that time?

nxdmsandkaskdjaqd

xylophone wrote: »

https://forums.moneysavingexpert.com/discussion/comment/68198856#Comment_68198856

But B at the end of the NINO appears to indicate

"Married women and widows entitled to pay reduced National Insurance"

And if you were in a COMP before 2012 it should have something different?

I will contact the NI people to find out why I have a B code.

I have checked some other documents from 2008 and they also state B.

I have no idea why.

nxdmsandkaskdjaqd

xylophone wrote: »

What was the letter at the end of your NINO prior to 2012?

And after?

I want to be sure.

When you said NINO, I Googled this and thought it meant the last digit of my National Insurance Number, was that what you wanted?

If so it was B.

If you wanted my NIC Table Letter it's D.

nxdmsandkaskdjaqd

Looking through some old Pension Forecasts from 2102 I see:

Basic Stare Pension £107.45 a week
Additional State Pension £34.00 a week

Does this tell us anything?

nxdmsandkaskdjaqd

xylophone wrote: »

Does the fact that you have a note on your file indicate a letter from the administrator at that time?

The note on the file infers that it came from HMRC, but I have no letter.

nxdmsandkaskdjaqd

xylophone

Thank you again. Sorry, but I didn't remember the previous threads, memory is bad due to my health.

I have found another document about the scheme:

Summary
The scheme is know as a 'hybrid' i.e the benefits from members personal accounts are provided on a 'money purchase' basis, but there is an underlying 'defined benefit' guarantee i.e the GMP/RST pension.

Intro
Membership to the plan has been contracted out of the S2P and it's predecessor SERPS.

Prior to 6 April 1997
The plan chose to contract out using the GMP method prior to April 1997.

From 6 April 1997 Onwards
The alternative method of contracting out is know as RST and this is the method chosen by the plan.

There is a lot more in the document, but I hope to have pulled the key sentances to hopefully describe the plan.

Again, I appreciate your help, and sorry for the length of this discussion.

xylophone

If you wanted my NIC Table Letter it's D.

Sorry - my fault - I should have been clearer that it was the category letter to see if it threw any light on the nature of the pension scheme.

It suddenly occurred to me that we were at cross purposes.

In my mind's eye I always see the payslip with the NINO and the category letter at the end.



D indicates contracted out standard rate but contracting out ended for Money Purchase Schemes in 2012 and for DB Schemes as from 6 April this year.

You had D at the end of 15-16? I am wondering whether the scheme is indeed a COMB.

In a normal contracted out DB Scheme, the employee accrued no additional pension between 1978 and 1997 because he was contracted out of SERPS - however, between 2002 and 2016, it was possible for him to build some additional pension even if contracted out of S2P ( the SERPS replacement) if he was on low to moderate salary.

Regarding the new state pension, see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf (although the figures are now outdated - the new state pension is £155.65).

It may be that your starting amount is £155.94 in which case you will not be able to build more entitlement.

But if you were contracted out, one would expect to see some mention of a deduction in your state pension statement.

I am hoping that PensionTech may be able to comment on your scheme - as I said, I have never come across anything like it.

In particular, if it was just a question of protected rights, these no longer exist so one would expect that there would be no question of "safeguarded benefits" - however, your scheme administrator has indicated that this is not the case so that in some way or another, there is a quasi DB element.

xylophone

Re post 57, I don't think this changes the position with regard to safe guarded benefits- you have a Reference Scheme Test rather than the GMP test - in fact, it would presumably be possible to have both, the one in respect of pre 1997 and the other for benefits accrued afterwards?

The RST required schemes to satisfy a requisite benefits test as set out in the 1995 Pensions Act - the test covered when the benefit must be paid, the rate at which it should accrue, spouse pensions, qualifying earnings etc.

nxdmsandkaskdjaqd

xylophone wrote: »

Re post 57, I don't think this changes the position with regard to safe guarded benefits- you have a Reference Scheme Test rather than the GMP test - in fact, it would presumably be possible to have both, the one in respect of pre 1997 and the other for benefits accrued afterwards?

The RST required schemes to satisfy a requisite benefits test as set out in the 1995 Pensions Act - the test covered when the benefit must be paid, the rate at which it should accrue, spouse pensions, qualifying earnings etc.

So I will still need to see a Pension Transfer Specialist to advise and take me down the transfer route in need be?

xylophone

So I will still need to see a Pension Transfer Specialist to advise and take me down the transfer route in need be?

The safeguarded benefits require the specialist.

I am curious about the mechanics of your scheme - presumably you are acquainted with employees who have taken benefits under the scheme - what can they tell you about how it works?

Is it a case of seeing what is in your pot, obtaining various quotes for an annuity and seeing how these compare with what you would get under GMP/RST?

In your case, would they be impaired life annuity quotes?

If there isn't enough in the pot for an annuity to provide equivalent GMP/RST benefits, does the company make up the shortfall?