gmp pension query

bored_accountant

First time poster- please allow for my ignorance of pensions. Please could somebody help me understand how a small pension that I contributed to, many years ago, works in practice. It only forms a small part of my retirement planning but confuses me greatly.

The scheme is run by a well-known high st retailer (not sure if I am allowed to name them)

I contributed for 3 full years from April 1989- March 2002 (my ages 21-24yrs)
Salary upon leaving £14000 pa
Deferred pension £690, made up of £155 gmp and £535 excess
Excess is revalued annually at lower of RPI or 5%
Scheme is 1/60 of final salary per year

I am hoping to retire at 60 (10 years time, I am 50 now) I am male.

I have been in contact with the pensions department of my ex employer, and they have provided me with an estimate at age 60 of £1389 per annum.

Scheme retirement age is 65, with no reduction for taking pension at 60

I am a bit confused by this as I thought my gmp was increasing at 7.5% per annum, and the quoted figure is also less than what I thought the revalued excess would be.

I have phoned them, and they say they do not calculate gmp until retirement age of 65.

Question- at 60 do I just get the revalued excess, them at 65 get the revalued gmp as well?

Any information that would increase my understanding of this would be appreciated.

marlot

bored_accountant wrote: »

...I contributed for 3 full years from April 1989- March 2002 (my ages 21-24yrs)....

I make that 13 years - I assume one of the dates is a typo?

bored_accountant

my apologies, well spotted, April 1989- March 1992, 3yrs

xylophone

You are male - your GMP age is therefore 65.

The Scheme must pay you a pension of at least your revalued GMP at GMP age.

You need to consult your scheme rules as to what happens if you choose to take your Scheme Pension before Scheme Pension Age.

It would appear that (unusually) your scheme does not impose an actuarial reduction in these circumstances.

However, it may be that you will receive only your unrevalued GMP plus revalued excess if you take your pension at age 60 with the possibility of a step up at GMP age.

See this thread but this is Barclays - schemes have different rules and you need to find out what yours are.

https://forums.moneysavingexpert.com/discussion/5865725/gmp-and-deferred-pension

Have you obtained a new state pension statement?

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

Dox

bored_accountant wrote: »

The scheme is run by a well-known high st retailer (not sure if I am allowed to name them)

Of course you can - you aren't criticising them, just asking for info (and someone here may be familiar with the scheme).

bored_accountant

thanks for the link Xylophone, i'll get back in touch with the scheme administrators to check on their policy.

The pension scheme was originally with Ward White until they got bought out by Boots in 1990, and is now under the Boots scheme umbrella.

I have a government pension forecast, I just need fivr more years on NI credits to get full state pension

xylophone

See also

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