Deferred pension value question

[Deleted User]

I have a differed pension which in 2003 was 14892 pa.

The pension certificate says this pensions gmp of £ 902 will rise by 4.5% every September and the remainder will rise annually by RPI or 5% which ever is the lower.

I have just called for an up to date figure and have been advised the sum has increased by 3.6% in the last 14 yrs.

This doesnt souind right to me and when I queried it she said its not cummulative but I'd have to write in and they would send a greater explanation.

Can anyone help me understand how it has risen by 3.6%.

Many thanks

Malthusian

Are they saying the pension revalued to today's date is only £15,428?

That certainly doesn't sound right but I would ask them to send the revaluation in writing along with their explanation.

[Deleted User]

yes thats what she said but as you say it just doesnt seem correct.

I have written for an up to date statement and i'm hoping she is wrong as you can imagine.

Luckily its not my only retirement provision but I'd still like an accurate forcast of where i'm at.

pip895

Could it be an average of 3.6%/anum?

[Deleted User]

Not sure Pip, she said total increase of 3.6 % and when I questioned the small amount over 14yrs she said its not cummulative ? When I questioned that she got a bit flustered and told me to write in and they would send an up to date forcase and a greater explanation.

xylophone

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

https://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Do you have your scheme booklet?

Do you have your statement of deferred benefits from when you left?

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

pip895

BBH123 wrote: »

Not sure Pip, she said total increase of 3.6 % and when I questioned the small amount over 14yrs she said its not cummulative ? When I questioned that she got a bit flustered and told me to write in and they would send an up to date forcase and a greater explanation.

If its 3.6%/anum non cumulative that would be a total of ~50.4% then, which would work out just under 3% cumulative which would seem about right. Very odd way of expressing it though??