LGPS capital cost updated

phil1959

Today an email has been sent to HR asking them to re look at the capital cost of my flexible retirement, as the finance team believes there are discrepancies in the figures.

Has any heard of a mistake being made.

thanks

maz

Silvertabby

No, but that's not to say that it could never happen.

Does the finance officer who has disputed the figures have any pensions experience? It's a really complicated calculation, with many different factors being brought into play.

I can't calculate your capital costs but, based on the pension figures you posted earlier, they must be at least £10K.

People do tend to undervalue a DB pension.

phil1959

The costs are £18000, I don't think the costs will be wrong.

maz

Silvertabby

I don't think £18K is wrong, either - it's a perfectly reasonable amount. My £10K guesstimate was just the absolute minimum it could be.

Do you know why HR are disputing this figure? Are they, by any chance, making the classic mistake of looking at the difference in your pension estimates for just one year, whereas pensions are looking at the cost of paying you this difference every year for the rest of your life?

phil1959

Good news my FR is back on, no capital cost mistake made.


Maz