Could someone kindly explain this to me

lorryw

I have discovered an old letter from 1992 referring to my husbands deferred pension entitlement on leaving his employment. Im afraid I don't understand what it actually means.

Deferred Pension Entitlement

at leaving estimated at NRD

Total Guaranteed Pension (GMP) £739.96pa £4851 pa
Excess over GMP £1695 pa £6027.71pa
Total deferred pension £2435 pa £10878.79 pa

Thank you

Silvertabby

NRD means Normal Retirement Date. Depending on which pension fund he is in, that will probably be either 60 or 65.

How old is he now?

lorryw

Thank you , is 62.

Silvertabby

Then he should contact them to ask what his NRD is - if it was 60, then there may not be any advantage in not taking the pension now.

Who is the pension with? If it's public sector (apart from the LGPS) then a transfer out isn't on the cards.

However, if it's a private sector scheme then he may want to ask for a transfer value as well as a current statement for comparison.

sandsy

It sounds like your husband was a member of a final salary pension scheme. The letter gives the value of his benefits at the time he left and what they might be worth after being increased for inflation up to retirement. Different bits of the pension have different inflationary increases applied, so the GMP increases at a different rate to the rest.

The £10k was an estimate of what it might be worth each year in retirement. Contact the pension scheme and get up-to-date figures.

lorryw

Thank you for your help