Deferred pension help please

becky2318

Hi, my husband is due to retire in August age 60, he is waiting on finalised figures from the civil service.

He worked a long time ago at Harrods and when he traced his old pension they have sent us the following-

The table below shows your annual pension at your date of leaving and the increased amount at 31st December 2019

Deferred pension at 8 November 1986 £393.96

Deferred pension at 31 December 2019 £2,262.52

Would he be able to take a lump sum or would it be the bottom figure annually?

All new to us and still trying to adjust to him being able to retire x

GunJack

You'd have to ask the Harrods pension administrators for a definitive answer

Albermarle

Deferred pension at 31 December 2019 £2,262.52

Normally would not be possible to take it as a lump sum, unless there was some unusual rules wit this particular old pension. However normally you should be offered an alternative option, which is to take part of it as a lump sum along with a reduced annual pension.
The lump sum will be tax free , whereas the annual income would not be .

xylophone

8 November 1986

It is very likely that (like the CS Scheme) this was a contracted out scheme - is a GMP mentioned?

You should contact the administrators for a full statement.

Has your husband obtained a new state pension forecast?

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

Silvertabby

Even if the scheme allows commutation (giving up some of the annual pension in return for a tax free lump sum) that may not be possible in this case if the reduced pension would then be lower than the GMP (if applicable).

Only the scheme administrators can answer this one, I'm afraid - we would only be guessing.

becky2318

Thank you for your replies. It doesn’t mention GMP. I think husband is just surprised that pension is worth that much a year, not a huge amount to many but will make a difference.

He has got his state pension forecast so just waiting for the CS figures now, I swear he looks 10 years younger having made decision to retire.

Will email Mercer back and ask what are the options regarding taking this pension.

LHW99

You could also ask if it has a spouse pension - some will offer 50% pension after decease of the main pension holder.

xylophone

You should also check the Normal Retirement Age of members of the Scheme.