Frozen final salary pension- date difference help please

mumsiedebs

I was made redundant from early April 2003 with a letter confirming the payments to be made to the company pension scheme until the actual end date. It also notes I was due a cost of living increase of almost 3%from 1st April.
The company asked me to finish all outstanding work by a date in February when I had already booked a 2 week holiday using some of my holiday entitlement. On the day they advised me I could go on holiday and not return but I would still be paid.
I’m looking at taking my pension now but they say it’s only calculated until my holiday under their rules .
I’ve no idea if this actually makes much of a difference to my pension as they won’t provide information on the April date. They suggested I contact my employer - but they haven’t any records as it’s such a long time ago.
I will lose some pension by taking it early( in 2003 i could leave at 60 but now I’ve to work to 66)
I feel like it’s a very one sided winner here but not sure what I can do or what difference it would make. Can anyone give me some advice or where to look up the rules of pension schemes with such a query. Many thanks

xylophone

I will lose some pension by taking it early( in 2003 i could leave at 60 but now I’ve to work to 66)

The Normal Pension Age of your scheme will depend upon the rules of your scheme at the time the pension was deferred (not frozen).

When you left, were you given a statement of deferred benefits?

Did you not keep a copy of the scheme booklet you would have been given when you started the pension? If not, have you looked on line to see if a copy of the scheme booklet is available?

Have you obtained a new state pension statement?

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

hyubh

mumsiedebs wrote: »

The company asked me to finish all outstanding work by a date in February when I had already booked a 2 week holiday using some of my holiday entitlement. On the day they advised me I could go on holiday and not return but I would still be paid.
I’m looking at taking my pension now but they say it’s only calculated until my holiday under their rules.

Assuming you were salaried, how long your actual holiday was is a bit of a red herring - what matters more is what you had left of your holiday entitlement, pro-rated for the part year.

That said, how exactly was 'still being paid for the holiday' done? E.g., was your formal termination date at the start of this holiday, and you got pay in lieu for any outstanding holiday entitlement? (If so, then your reckonable service for pension purposes would have been cut short, and the pay in lieu would very likely not have been pensionable.) Or, perhaps you had 10 days left exactly, your actual holiday used this up (and no more), and your formal termination date was then set for the end of the actual holiday...?

in 2003 i could leave at 60 but now I’ve to work to 66

Do you mean, normal pension ages (or at least, drawing the pension without an actuarial reduction) were/are different for retiring from active vs. retiring from deferred...? The 66 specifically also sounds surprising by the way - what makes you say that...?

mumsiedebs

Thanks for responses. I started the pension in 1991 and cannot remember what if anything I was given. I’ve not found anything in my papers but will go back to the scheme and ask for a copy. I wasn’t given a great deal when I left but have kept letters.
The state pension age has changed twice for 50’s ladies so when I deferred the pension I expected to leave at 60. I now know my spa is 66.

Marcon

mumsiedebs wrote: »

The state pension age has changed twice for 50’s ladies so when I deferred the pension I expected to leave at 60. I now know my spa is 66.

Your state pension age won't affect the benefits you had built up in this scheme, or when they become payable. Check with the scheme administrators when you ask for more info. You might also send the a scan of the letter you have confirming dates/cost of living increase due. Don't assume they have it already!

xylophone

The state pension age has changed twice for 50’s ladies so when I deferred the pension I expected to leave at 60. I now know my spa is 66.

You need to establish the NRA for your scheme.

Don't forget to obtain a state pension statement.

Silvertabby

As Marcon and xylophone say, payment ages in respect of your company pension and your State pension are not necessarily the same.

It's almost certain that you will still be able to access your company pension at age 60, but whether or not it would be reduced for early payment depends on the scheme's normal retirement age.

If you are the same age as me, then your State pension age in 2003 was 65, not 60. This increased to 66 due to the 2011 changes.

mumsiedebs

You’ve mentioned I need this but I don’t know what it stands for , I know I will groan when you confirm. Sorry to be dim about pensions.

cloud_dog

Normal retirement age (for the scheme).

mumsiedebs

The email I had confirms:-
last date 10 April,
o/s notice up to this date,
O/s annual leave upto 10 April =14 days(13=2002/3+1=2003/4)
+pension contributions upto 10 April 2003
+Apply col=2.9% to salary for 10 days(1-10April).

Should my pension be based on the final salary with the +2.9%?
Does it make any difference? Many thanks

hyubh

mumsiedebs wrote: »

The email I had confirms:-
last date 10 April,
o/s notice up to this date,
O/s annual leave upto 10 April =14 days(13=2002/3+1=2003/4)
+pension contributions upto 10 April 2003
+Apply col=2.9% to salary for 10 days(1-10April).

Should my pension be based on the final salary with the +2.9%?

What is the 'col' in 'Apply col' short for? It's a bit ambiguous what exactly the '2.9%' is about - the fact your final pay packet was for one and a bit months? Or that you could some sort of automatic rise on 1 April?

Even if the latter, your 'final pensionable salary' would unlikely be literally your salary on leaving. E.g., it could be an average of your salary over your final 12 months, so you would only get the benefit of the rise in a pro-rated fashion given you only enjoyed it for less than a month. However, the definition of 'final pensionable salary' applicable will be scheme-specific, e.g. it might average to even further back.

That said, is 10/04/03 the last day of reckonable service (i.e., day of leaving the pension scheme) quoted by the pension scheme administrator? Because the details you've now quoted at least confirm that this should be the case.