Final salary pension closure

Arshad_00

Wrighty69 wrote: »

The pension is either going into the PPF or there is a new separate pension scheme being started that we can transfer our pensions into if we want. I would lose 50% if I took it at 55 and if/when it goes into the PPF the fund will drop by 10% so then at 55 I am down to approx. 45% of the full pension. There will be no more redundancies in Tatasteel UK, there is nothing to keep people there now so people will be leaving in droves as the pay is not good, I dream of 40K a year. My best years wages is from 21 years ago.

So a 5% reduction for every year before 65? Very similar to my deferred scheme. Hence me waiting, every year I struggle through on savings my pension goes up. I'm 61, with a transfer value of £490k I've struggled to make my mind up, but I have finally decided to go with £12300 pa and £82k (rather than £16900 and no lump.)

Wrighty69

kidmugsy wrote: »

If you heard that rubbish in the pub you'd be better off switching to a different pub.

I have an accountant, looks like I have to change him as he assured me that's how it works now.

Wrighty69

My mortgage overpayments can be claimed back at any time so I have a pot if needed.
My total annual pension is £21k, if I took it at 55 as previously stated I would lose 5% per year for every year below 65 that I got it.

Paul_Herring

Wrighty69 wrote: »

I have an accountant, looks like I have to change him as he assured me that's how it works now.

You either need to change him, or you've misunderstood what he said.

Wrighty69

Paul_Herring wrote: »

You either need to change him, or you've misunderstood what he said.

That bridge can be crossed later, my pension is the main problem at the moment.

xylophone

https://www.bspensions.com/media/userfiles/files/BSPS-BS%20Explanatory%20guide%202017.pdf

I note that those deferred pensioners who joined the scheme before 5 4 06 can take their reduced benefits from age 50.

You mention "health issues"- are these serious enough that you would anticipate requesting incapacity retirement?

https://www.bspensions.com/media/userfiles/files/Incapacity%20Leaflet%20Feb%20GE1.pdf

Do you intend to continue working for British Steel or are you looking for another job?

The "free hour" might at least clarify your thinking?

https://www.royallondon.com/Global/documents/GoodWithYourMoney/COMPANY-PENSIONS-FIVE-REASONS-TO-TRANSFER-OUT-AND-FIVE-REASONS-NOT-TO.pdf

Wrighty69

I am waiting for my pension statement then I will use the free hour.
I work for Tatasteel, I am looking around to see what jobs are around at the moment and if I see the right one I will leave but at present I have no immediate plans to leave.
My health issues are not bad enough, I don't think to get incapacity benefit, I have Ankylosing spondylitis in my neck and have lower disc problem in my back (1 failed operation).

Wrighty69

Well it is official now (it has been all over the news) the BSPS is going into the PPF but we can transfer into a new scheme that will increase at a the lower rate of inflation (is it the RPI) but apart from that it will be the same as the old scheme.
Would it be better to take the 10% hit of the PPF but grow at the higher rate for 8 - 18 years depending what age I retire at ( also Tatasteel have transferred 30% of their UK business into the scheme) or transfer it and get a lower rate of growth.

xylophone

Trustee Press Release - 11 August 2017

https://www.bspensions.com/news/page-1/trustee-press-release-11-august-2017-a35.html

The Pensions Regulator has today issued a determination notice and clearance statement for a regulated apportionment arrangement (RAA) to separate the British Steel Pension Scheme (BSPS) from Tata Steel.

When the RAA takes effect, Tata Steel will pay £550 million into BSPS and will also give BSPS a 33% equity stake in Tata Steel UK Limited (TSUK).

Members of the BSPS will have the option of switching to a new scheme (the New BSPS) or moving with the old BSPS into the Pension Protection Fund (PPF).For the New BSPS to come into effect, it will be subject to certain qualifying conditions relating to factors such as size and funding level.

The New BSPS will be sponsored by TSUK, meaning that TSUK would have legal obligations to fund the New BSPS if it fell into deficit.



The New BSPS will pay the same benefits as the old BSPS except that future increases will be smaller. The modified benefits offered by New BSPS are expected to be better than PPF compensation for the vast majority of current pensioners and for many other members.
Details of the modified benefits were outlined in the Trustee's letter to members of 26 May 2016. This letter and other information is available on the Scheme website https://www.bspensions.com.





CPI inflation rate rather than RPI inflation rate would be used in the new scheme.

Wrighty69

Looks like the majority of people are going to transfer their pot out into a private pension