Pension Levelling

Little_Rotti

Hi I have 2 separate questions on this subject, so I would be very grateful if someone in the "know" could help me out, preferably in layman's terms:-
Firstly on behalf of my husband;
He is just coming up to his 57th birthday, and, is thinking of retiring early, he currently pays into a company pension, but he also elected to take a final salary pension from the Coal Board (IWSS) when he reached 50.
He has heard of Pension Levelling, although his knowledge is only sketchy,he thinks it may be something that would benefit him now, rather that waiting until, (and hoping) he reaches pensionable age, which, at the moment is 66 and 3 months (he's also heard rumours that this could be changed for the worse at some point in the future) so he may not even live to receive it!! What is Pension Levelling, and is it something the government, company or pension provider pays?
My Second question is the same topic, but for myself:-
I'm currently 58, I retired due to ill health in 2008, I've opted to receive payments from my two pension providers, which amounts to a small monthly payment from each. Would I be eligible to go for "Pension Levelling" if so how would I go about it?
Many thanks in advance.

LHW99

National Grid pensions seem to offer this. Its seems to be where there is a higher pension paid before SPA, and a lower one after.
I don't know if other schemes offer this.
This booklet may give information wrt the Coal Board Scheme, but cannot say if it is the relevant one.
http://www.mps-pension.org.uk/wp-content/uploads/2016/07/members-handbook.pdf

brewerdave

Re your 2nd Q - As far as I'm aware, you can't opt for levelling once your pension is in payment - if your schemes allowed it, it should have been an option when you first took the pensions. But if you retired on the grounds of ill health, did you not get an enhanced payment anyway ???

xylophone

The levelling option is offered at the time a pension is taken.


'Levelling" is an option offered by some schemes to members at the point of retirement. They may choose to receive a larger pension from the Scheme up to the time they can start claiming their state pension, and a smaller one afterwards.

Your husband is already drawing a DB pension ( so has made his choice if the option was there) - I doubt whether he can change?

Your pensions are already in payment.

Does your husband's current scheme offer a levelling option?

Have you both obtained new state pension statements?

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

Little_Rotti

Thank you everyone for your help.

jamesd

Please confirm that you're still making pension contributions, that will make you between £180 and £720 a year after tax after paying in £2880 and taking out £3600.

Your husband will also have the option of paying in to a personal pension then taking that out to live on while delaying taking the company pension. But is this current company pension defined benefit like the Coal Board one or does it have a pot of money and investments that are his, called defined contribution. That can be taken from 55 and there's no need to buy an annuity. He can carry on paying in as well, though he might have to stop for a month to transfer out if he wants to take it.

Using savings to boost pension contributions while still working can be a great move and it can be even better when it lets you avoid taking a defined benefit pension early, or lets you take it less early.