BT Pension Scheme

smjxm09

You are correct in that BT like people to max out their lump sum as it reduces future pension liabilities and that is what most people seem to do.

Don't forget that as you were opted out of the second state pension until 2009 your state pension will be reduced when due and that BT will apply its dreaded Offset to cut your BT pension when you get your state pension for contributions made after 2009.

robin61

smjxm09 wrote: »

You are correct in that BT like people to max out their lump sum as it reduces future pension liabilities and that is what most people seem to do.

Don't forget that as you were opted out of the second state pension until 2009 your state pension will be reduced when due and that BT will apply its dreaded Offset to cut your BT pension when you get your state pension for contributions made after 2009.

Yes I've always struggled to get my head around that. Something to do with not receiving a double benefit ? Does it make much difference to the BT Pension ?

xylophone

Yes I've always struggled to get my head around that. Something to do with not receiving a double benefit ? Does it make much difference to the BT Pension ?

https://cwunortheast.co.uk/2016/06/08/bt-pensions/

smjxm09

Yes I've always struggled to get my head around that. Something to do with not receiving a double benefit ? Does it make much difference to the BT Pension ?

You can look up your offset on the BT pension portal.

BT claim it is to do with double benefit but it is more to do with them finding an excuse to saving money but you can expect the offset will be around £800 per year and rising depending when you leave and your grade.

robin61

smjxm09 wrote: »

You can look up your offset on the BT pension portal.

BT claim it is to do with double benefit but it is more to do with them finding an excuse to saving money but you can expect the offset will be around £800 per year and rising depending when you leave and your grade.

Ah yes I see it's on the benefits statement. Thanks

tigerspill

smjxm09 wrote: »

You can look up your offset on the BT pension portal.

BT claim it is to do with double benefit but it is more to do with them finding an excuse to saving money but you can expect the offset will be around £800 per year and rising depending when you leave and your grade.

But I believe the offset was calculated incorrectly on the 2016 statements (by about £200). It will be interesting to see if it is fixed this year (no idea when they will be available)

And they still haven't published how the offset will be calculates going forward as it was dependent on S2P which has now gone. This has been outstanding for a long time.
The CWU article mentioned above also mentions this.

robin61

tigerspill wrote: »

But I believe the offset was calculated incorrectly on the 2016 statements (by about £200). It will be interesting to see if it is fixed this year (no idea when they will be available)

And they still haven't published how the offset will be calculates going forward as it was dependent on S2P which has now gone. This has been outstanding for a long time.
The CWU article mentioned above also mentions this.

I think the new statements usually get published in about October.

madeinireland_2

I asked them recently and they expect to have them up within a month.

Is it overstated or understated in error? I can probably guess this will not be good news.

tigerspill

madeinireland wrote: »

I asked them recently and they expect to have them up within a month.

Is it overstated or understated in error? I can probably guess this will not be good news.

It was understated. Not sure if it impacted everyone, but it did impact everyone I asked. Basically they didn't update the offset between last FY and the year before. When contacted, they did say it was an error - but they did nothing about it.

DK68

y32k.org will now battle Offset against Single Tier Pension (State Pension Interception) and Forced loss of Employment (circumvention of Deferred Member Rights) for Closure Members (Those retiring from the Scheme or forced into Deferment from 6th April 2016 onwards)