RBS and clawback / State Pension Deduction

GabbaGabbaHey

I will shortly be 60 and I have had my retirement pack for my RBS DB pension.

There is a mention of "clawback" in the pack which says: "When you reach your State Pension Age your pension from the fund will be reduced by your State Pension Deduction. This is currently valued at £141.13 and will increase in line with your main pension benefits. For further information on the State Pension Deduction please refer to your Fund booklet".

I rang Willis Towers Watson (who administrate the RBS scheme) to ask whether the £141 was per week/month/year, and they said that it was "per year", which surprised me. Is this likely?

Also, any idea where I could get a copy of the Fund booklet? I've spent a lot of time on-line trying to understand exactly how RBS operate State Pension Deduction, with no joy, and I'd like to read the source documentation.

xylophone

https://rbs.tbs.aon.com/RBS/media/default/PDFs/Current%20Pension%20Plan/G-Group-Pension-Fund-booklet.pdf

If you were a member of The Royal Bank of Scotland Staff Pension Scheme before 1 January 2002, your pension will be reduced from State Pension Age by:
1/40 x State Pension deduction x pensionable service before
1 January 2002




https://www.scotsman.com/news-2-15012/rbs-pensions-misery-1-73785


https://www.professionalpensions.com/global-pensions/news/1465136/rbs-strikes-clawback-deal-avoid-tribunal

GabbaGabbaHey

Many thanks - but now I am even more confused!!

My retirement pack says "your pension from the fund will be reduced by your State Pension Deduction" while the Fund booklet says "your pension will be reduced from State Pension Age by: 1/40 x State Pension deduction x pensionable service before 1 January 2002".

These are completely different things - and neither of them tells me what my SPD actually is :-(

Thanks also for the links - unfortunately the Scotsman one seems to be dead.

xylophone

but now I am even more confused!!

The glossary of terms in the booklet linked above says

State pension deduction
An amount equal to 30% of the annual basic flat-rate State pension for a single person at the time of the benefit calculation.

And
Pensionable service Complete years and months of Fund membership. The maximum service under Option 1 is 40 years before age 60 and an additional 5 years available after age 60. Under Option 2 the maximum service is 45 years.



The Scotsman link (2005) said

The Royal Bank operates a state pension reduction (also known as clawback) but applies it only to Royal Bank pensioners, full and part-time, not Nat West pensioners. The maximum clawback is 30 per cent of the basic old-age pension or 25 a week, and this figure also applies to widows and widowers of deceased pensioners.

You may find this of interest.

https://www.lovemoney.com/news/74178/pension-clawback-state-deduction-hsbc-midland-retirement-payment-uk

Some "clawbacks" are quite modest
see post 33

https://forums.moneysavingexpert.com/discussion/4736856/barclays-final-salary-pension-gmp-excess-revaluation-anti-franking&highlight=mikefloutier&page=2

http://www.web40571.clarahost.co.uk/archive/saga/2000_and_before/990202.htm