FS pension increase question

Muscle750

The company i work for pulled the FS pension in 2006 each year on the statement telling me i preserved benefits etc the figure has only increased by just over £600 in the last 10 years, I dont know what any transfer value would be of this FS pot however with the company admitting a increase of nearly double in underfunding from £18 million to nearly £34 million in the last year i cant see it doing any better is the amount of increase it can see capped? Whats really annoyed us is it appears that upper management have retained their FS . We have asked the admin to confirm this .................no answer 4 months on

PeacefulWaters

£600 increase from what amount?

Muscle750

The FS scheme was only running for a short while this is why the figures are "loose change" material Preserved on the 31st July 2006 £2543 PA ten years down the line £3149 PA , not exactly second home in the country material. A storming increase as you can see

PeacefulWaters

Muscle750 wrote: »

The FS scheme was only running for a short while this is why the figures are "loose change" material Preserved on the 31st July 2006 £2543 PA ten years down the line £3149 PA , not exactly second home in the country material. A storming increase as you can see

It is only meant to be inflation linked with a cap. What were you expecting?

AllyMac

That's over 2% per year, isn't it?
What's the issue?

bigadaj

Muscle750 wrote: »

The FS scheme was only running for a short while this is why the figures are "loose change" material Preserved on the 31st July 2006 £2543 PA ten years down the line £3149 PA , not exactly second home in the country material. A storming increase as you can see

What were you expecting, double or more?

It's always best for posts like these to be genuine enquiries, otherwise they just sound like a whinge, particularly when what you are getting would exceed what most of the population might have qualified for. For example bash those numbers into an open market annuity and see what you might have to pay for them, that might give you an idea of how much that benefit is worth.

Silvertabby

“ The FS scheme was only running for a short while this is why the figures are "loose change" material Preserved on the 31st July 2006 £2543 PA ten years down the line £3149 PA , not exactly second home in the country material. A storming increase as you can see
Originally posted by Muscle750 ”

If this had been preserved in a public sector pension, then the cost of living increase (RPI / CPI) from 31 July 2006 to April 2016 would have been £2543 x 1.2870 = £3272.84. Very little difference - possibly because your scheme has a cap? As bigadaj says - what were you expecting?

sandsy

For deferred members, the pension income normally only increases in line with the cost of living (subject to a cap) so that it more or less retains its value in real terms.

Why would you expect any more than this? Remember that the increased income is then payable for life once you start taking the pension.

p00hsticks

Muscle750 wrote: »

Preserved on the 31st July 2006 £2543 PA ten years down the line £3149 PA , not exactly second home in the country material. A storming increase as you can see

Nearly 24% increase over the ten year period which sounds about right ?