We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Can someone explain please

Luckyjammygit
Posts: 27 Forumite
Hello All
I am under consultation for redundancy but would possibly be able to get medical retirment instead.
However on contacting the pension head office I discover that even with a fully paid up pension you can only receive 25% of your final salary.
Although this was quoted as a projected £12,000 pension in 2005 the company that has took over in 2006 have only quoted £4000 explaining that we have changed from 60 to 90 whatever this means.
I have paid into this pension fund for 25 years and would have thought it would be a lot better than thier quote.
Would I now be better taking redundancy package bearing in mind that as I am partly disabled I will struggle to find another job.
Thanks for any replies.
I am under consultation for redundancy but would possibly be able to get medical retirment instead.
However on contacting the pension head office I discover that even with a fully paid up pension you can only receive 25% of your final salary.
Although this was quoted as a projected £12,000 pension in 2005 the company that has took over in 2006 have only quoted £4000 explaining that we have changed from 60 to 90 whatever this means.
I have paid into this pension fund for 25 years and would have thought it would be a lot better than thier quote.
Would I now be better taking redundancy package bearing in mind that as I am partly disabled I will struggle to find another job.
Thanks for any replies.
0
Comments
-
The change from 60 to 90 probably relates to the fraction of your salary you will receive in retirement.
It sounds like you would have received 1/60th for every year you paid into the scheme, at some point the scheme changed so you were then going to receive 1/90th of your final salary when you retire. I believe the change in the scheme should only effect future benefits. If the scheme only changed from 60ths to 90ths in 2006 I can't see how it could have made such a dramatic difference to your quote?
I hope this makes sense and I'm no expert.something missing0 -
When you are medically retired (under most scheme rules) you dont get a "full Pension" ie get credited with the years of service you'd get if you worked till normal retirement age. Generally you get what you've acrued possibly plus a few bonus years - but it isn't reduced for taking it early.
However only getting 25% for 25 years seems low, did they perhaps mean 25 years, ie 25/60ths. about 40%0 -
Its possible they were talking about your lump sum which would be 25% of the whole pension.... you need to get it explained properly before you commit
EDIT: when I took Ill-Health Retirement the pension was made up to what I would of expected had I been able to continue to 60yrs , my retirement age...#6 of the SKI-ers Club :j
"All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke0 -
Agree that you need some clarification. As ads posted, if the rate at which your pension builds up is changed, it can only change for the future - all the pension you built up beforehand is protected i.e. at the original promised rate.
One other thing ..... your employment can only be terminated for one reason - either redundancy or ill-health. Either way, there is a process to go through.
Has your employer initiated any action to terminate your employment due to ill-health? Have they indicated that they would be willing to do so, instead of redundancy?
Have you considered that if your employment terminates due to ill-health, that you will not get any redundancy pay?Warning ..... I'm a peri-menopausal axe-wielding maniac0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.8K Work, Benefits & Business
- 617K Mortgages, Homes & Bills
- 175.6K Life & Family
- 254K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards