Questions re a CSC Computer Sciences LTD deferred pension.

xylophone

You had a pension with Wright/Wheway (see post 16.)

The type of pension is unknown but whatever it was, a transfer value went to Lucas Engineering and Systems Ltd in 1990 when you commenced employment with the firm

Lucas called this your "Transfer Account" and it was to be treated as outlined in your post 5

Your transfer value is allocated to your own account.

The account is adjusted year by year, fully in line with the investment performance of the Lucas Pension Scheme.

When you retire:

# Your account is first used to provide any Guaranteed Minimum Pension from State Pension Age, any balance is then converted into a lifetime pension and added to the pension you have earned as a member of the Scheme.

# If your total pension exceeds the minimum level required by the State, the excess can be used on the Scheme's retirement options. These options are :

# Tax free cash

# A temporary pension to State Pension Age - if you retire early.

# Spouse's additional pension.

From the above then, the "Transfer Account" was to be used to support the GMP.

LS&E was sold to CSC who took over responsibility for the Pension Scheme.

https://www.linkedin.com/company/lucas-engineering-&-systems

Are you sure that your AVC account is the same thing as the Transfer Account as originally set up in the Lucas Scheme?

deejaybee

Well i have NEVER contributed to an AVC scheme at either Wright/Wheway, Lucas or CSC ???

Regarding the question of Cash Equivalent transfer value, the CSC final salary scheme was closed to future accruals from 1 July 2010.

Would this make it more likely for them to offer me a good deal to get me " off the books " ?

xylophone

Well i have NEVER contributed to an AVC scheme at either Wright/Wheway, Lucas or CSC ???

It's simply that I am puzzled about the original treatment of the "Transfer Account" (a kind of "buy in" to the Lucas Scheme with the possible link to GMP) and the "conversion" to an AVC account which is on the one hand stated to be required to underpin the DB Scheme ( which ties in with the Lucas information) and on the other is said to be a separate account which pays additional benefits.

Of course, it is perfectly possible that scheme rules only permitted AVCs to be taken at the same time as main scheme benefits, regardless of how those benefits were taken.

We must wait with bated breath for Mercer's words of wisdom?

the CSC final salary scheme was closed to future accruals from 1 July 2010.

Would this make it more likely for them to offer me a good deal to get me " off the books " ?

https://forums.moneysavingexpert.com/discussion/4995337

TRW seemed quite keen to "say goodbye...":)

You could ask Mercer for a CETV - it might take your breath away..:eek:

deejaybee

Hi again,

Have received a letter back from Mercer - but this led to more confusion.

So i managed to speak direct to an administrator - who explained things for me, and is going to send me another letter setting out the extra information given verbally, as i dont think i would have been able to relay it back on here accurately enough.

Will of course update here when i receive next letter.

# also requested CETV, admin was not aware of any "enhanced" offers at present.

xylophone

Have received a letter back from Mercer - but this led to more confusion.

Oh dear....sounds like the tortuous ( even tortured) experience of another poster but with another administrator..:)

https://forums.moneysavingexpert.com/discussion/4736856 ..already post 48

and finally post 165 ........ https://forums.moneysavingexpert.com/discussion/4736856

I'll be interested to see what your administrator comes up with!

deejaybee

Hi again

Thought i would add an " interim" update based on the letter i received around 23rd Feb ( as i am awaiting the " further explanatory letter" and it may be that it will arrive with the CETV quotation - 28 days or so )

Anyway the changes from the existing state of play were as follows:

My " starting" GMP from date i left CSC has increased from £304.72 pa to £560.04 pa

( The other component that increases with Prices Index remains the same at £413.60 )

The explanation for the GMP Increase :

The Transfer of your Money Purchase benefits into the Final Salary section of the Scheme was used to purchase additional Pensionable benefits by way of additional Guaranteed Minimum Pension ( GMP).
Any previous reference to an AVC fund value that we have sent you was incorrect. Please accept my apologies for this error.

I asked the question that if i didnt have an AVC fund, why have i been receiving yearly statements re investments in the " Legal and General AVC Consensus Fund " for years and years and years ?

I was given a verbal explanation most of which went over my head, i did catch something about a legislation change a few years back ( which i think we touched on in earlier posts ) Hence my request for a further letter explaining things.

Will of course come back when i get further info.

regards DJB

xylophone

Then the situation is much as outlined in post 11?

Awaiting details of the letter with interest!

deejaybee

Hi again - received letter of explanation:

Dear Mr xxxxxx

I write with reference to your telephone call on 23 February 2017 with my colleague xxxxxx xxxxxx regarding your benefits in the CSC Computer Sciences Ltd Pension Scheme.

As per your request, please find confirmation of the queries that were answered by xxxxxx during your telephone call:

# We can confirm that the transfer from Lucas was received as a money purchase fund and was invested.

# We can confirm that the transfer in included a GMP that needs to be covered by the Money Purchase fund.

# We can confirm that the GMP and the Money Purchase fund value are the same benefit, and the Money Purchase fund is not classed as an Additional Voluntary Contribution ( AVC )

# We can confirm that as the transfer in benefit is invested as a Money Purchase fund, it was a requirement that we provided you with a SMPI statement each year, but this benefit was not an addition to your Final Salary benefits in the Scheme.

Having reviewed your query, we can confirm that as a member of the Lucas Pension Scheme, you were contracted out of SERPS for a period of service between these dates and so paid a reduced rate of National Insurance contributions. This means that the Lucas Pension Scheme took responsibility for paying GMP for this period rather than benefits being provided through SERPS . This amount of GMP is broadly equal to the amount that would have been paid by the state.

When your benefits were transferred to the CSC Computer Sciences Ltd Pension Scheme, this GMP pension was converted into Protected Rights, which was a Money Purchase Fund Value rather than a pension value. This was due to the fact that the CSC Computer Sciences Ltd Pension Scheme was contracted out on a Money Purchase basis rather than the Salary Related basis as described above.

We can confirm that Protected Rights were abolished in 2012, meaning that the Money Purchase Underpin is no longer applicable.

Should you have any further questions, please contact us.

DOES THAT ALL MAKE SENSE ?

Thanks DJB

xylophone

the CSC Computer Sciences Ltd Pension Scheme was contracted out on a Money Purchase basis rather than the Salary Related basis as described above.

They are saying that the CSC Scheme was a Contracted Out Money Purchase Scheme?

https://www.pensions-pmi.org.uk/news-and-publications/pensions-terminology/?character=C&p=5

Then the situation is much as outlined in post 26?

The Lucas Scheme was an "underpin" type account and your benefits in Lucas simply transferred into the CSC COMP?

In sum, you have no AVC at all but just a deferred pension as set out in your first post?

I received a deferred statement in September 2015 ( will request another one soon )

When i left CSC my deferred pension amounted to £718.32 p.a
Made up of following components:

(1) £304.72 p.a is your estimated GMP and approx corresponds to the amount you would have earned in SERPS. This will be increased by the Scheme by 7% for each complete tax year from leaving date up to Normal Pension Date.

(2) £413.60 p.a. is that part of your pension which will be increased by the scheme in line with the prices index to a max of 5% for each complete year from leaving date till normal pension date. ( They switched from RPI to CPI in 2011 )

Does your New State Pension Statement show a COPE?

https://www.gov.uk/yourstatepension?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

Have you been provided with a CETV?

xylophone

You may find this thread of interest

https://forums.moneysavingexpert.com/discussion/5618411