An Old Pension That I Thought Was Dead

westv

From around 1984-1997 I was a member of a company DB pension scheme.
To cut a long story short the pension scheme had to close and shortly after I received a letter advising my benefits would be £100 a year something equally small. I was also offered the chance to take a lump sum there and then (£8k or so??) which I took.
Thought that was the end of it.
I've moved house a few times in between then and now.
Today I got a letter from a company dealing with the scheme (on behalf of the Financial Assistance Scheme) asking for me to confirm that the details they hold are correct.
Perhaps this means my benefits from this pension are not quite dead but I'm thinking more likely that they'll thank me for confirming the info they hold is correct and that no more pension is payable

LHW99

Could this relate to a GMP benefit?

westv

Maybe.
All I can remember is that it was a DB scheme. I think it was the usual 1/60th scheme. I paid 5%. The company also contributed. Not sure if I was contracted out or not. I was a member from 1988 to 1997. The scheme was wound up around 2003.
From what I've read here and elsewhere lump sums are normally only paid out after age 55 so not sure what the lump sum I received was made up of. It would have been in the letter I got but that was years ago.
Will ring them on Monday and find out.

westv

I now think I received a winding up lump sum. This was in ( a guess) 2003. From what I've read on the net this would have commuted all benefits so I think the letter I have just got was purely to update their address records. I'll still call anyway.

westv

I rang them but, as expected, the person I spoke to didn't have any info to give me about the pension. She was just updating address records. So I still don't know whether I have anything to come.
I left in 1997. The company went into administration and the defined benefit scheme was wound up around 2003. As far as I remember the sum I received was something like £6-£7k or so when I was early 40s. I was in the scheme for 9 years and, from what I can guess now, that sum would have been approx the amount I would have paid in for my 5% contribution.
It does seem strange for this new company to go to the effort of tracing me if there is nothing due but I can't see where any uncommuted benefits might arise.
Who would know? Would I be wasting my time trying to find out?

Edit: I decided to ring the Financial Assistance Scheme and they were very helpful.

Lrimas

And? What did they say?

westv

The way I understand it now is that lump sum I took commuted the "we've gone bust" part of the pension - hence the very low figure originally given way back.
The pension I now know I will get is the uplift part from FAS. As of 2014 the forecast was £5k annually. This addition to my figures is a potential game changer as to when I can retire.
The original pension was index linked and I thought at first this one would be as well but now I'm not so sure. They are going to resend the 2014 forecast so I'll have a look at that.
Just slightly annoyed with myself that I can't have read the commutation info properly when it came but obviously glad I was contacted in the end.

brewerdave

westv wrote: »

The way I understand it now is that lump sum I took commuted the "we've gone bust" part of the pension - hence the very low figure originally given way back.
The pension I now know I will get is the uplift part from FAS. As of 2014 the forecast was £5k annually. This addition to my figures is a potential game changer as to when I can retire.
The original pension was index linked and I thought at first this one would be as well but now I'm not so sure. They are going to resend the 2014 forecast so I'll have a look at that.
Just slightly annoyed with myself that I can't have read the commutation info properly when it came but obviously glad I was contacted in the end.

VERY good news for you - I bet a few people will be feeling envious reading this (including me:rotfl:)