Pension entitlement has dropped

DurhamGirl1962

I'm planning my retirement and requested an illustration in February 2017 with a view to retiring on 30 June. I didn't retire then, so requested another illustration in September with a view to retiring on 31 December. In that period my entitlement has dropped. When I queried why, I was told it was because of a change in the fixed percentage revaluation rate of GMP changing from 4.75% to 3.5%. I understand this, but given my pension provider knew I was looking to retire, should they have made me aware that the change was coming? I've paid in several more months contributions but will come out with a smaller pension. If I'd known this was going to happen, I could have taken my pension from 16 August, thus saving myself 4½ months contributions. Do I have a case for compensation?

HappyHarry

DurhamGirl1962 wrote: »

I'm planning my retirement and requested an illustration in February 2017 with a view to retiring on 30 June. I didn't retire then, so requested another illustration in September with a view to retiring on 31 December. In that period my entitlement has dropped. When I queried why, I was told it was because of a change in the fixed percentage revaluation rate of GMP changing from 4.75% to 3.5%. I understand this, but given my pension provider knew I was looking to retire, should they have made me aware that the change was coming? I've paid in several more months contributions but will come out with a smaller pension. If I'd known this was going to happen, I could have taken my pension from 16 August, thus saving myself 4½ months contributions. Do I have a case for compensation?

The reduction to 3.5% wasn't decided upon 9th March 2017, and was then laid before parliament on 13th March 2017. It seems unreasonable that the Teacher's Pension Scheme knew beforehand.

http://www.legislation.gov.uk/uksi/2017/354/pdfs/uksi_20170354_en.pdf

A reduction to 4.0% was in discussion before then, but as it was only in discussion, it would be difficult to claim because of it.

DurhamGirl1962

Thanks; that's helpful.