GMP removed from pension

xylophone

This is a real oddity.

OP, how will your pension increase in payment?

Silvertabby

zagfles wrote: »

When you left this job, did you get a refund of pension contributions? It could be the scheme have screwed up and refunded you, paid the CEP but not closed down your pension, ie you might not really be entitled to any pension at all!

Beat me to it. With less than 5 years service pre 1988 the most obvious answer is that OP took a refund of her contributions and the pension company paid the CEP to put her back into SERPS (ie, as though she had never been in the company pension scheme at all).

However, the pension company are saying that they have a deferred benefit record for her. First thing that springs to mind is that OP transferred a previous pension into this scheme, thereby giving her enough service to qualify for deferred benefits - but if that were the case then the scheme wouldn't have paid the CEP when she left.

Second thing that occurs to me, like zagflies, is that the record was mistakenly put to 'deferred' status instead of 'refunded'.

OP - can you say which pension scheme this was with - and if you transferred any prior benefits into it?

Brynsam

Looking at the date - early 1980s - few pension schemes were computerised and the scope for error was greater, because there were no automated checks and balances as there are now (albeit still with plenty of scope for error!). I suspect that, as suggested above, a CEP was paid but the member record wasn't correctly updated. In OP's shoes, I'd leave well alone and far from being disappointed by the lack of GMP, I'd be delighted there was any pension at all.

Sue_S

xylophone wrote: »

This is a real oddity.

OP, how will your pension increase in payment?

"In line with RPI subject to a minimum increase of 3% and a maximum increase of 5% per annum compound."

Sue_S

Silvertabby wrote: »

Beat me to it. With less than 5 years service pre 1988 the most obvious answer is that OP took a refund of her contributions and the pension company paid the CEP to put her back into SERPS (ie, as though she had never been in the company pension scheme at all).

However, the pension company are saying that they have a deferred benefit record for her. First thing that springs to mind is that OP transferred a previous pension into this scheme, thereby giving her enough service to qualify for deferred benefits - but if that were the case then the scheme wouldn't have paid the CEP when she left.

Second thing that occurs to me, like zagflies, is that the record was mistakenly put to 'deferred' status instead of 'refunded'.

OP - can you say which pension scheme this was with - and if you transferred any prior benefits into it?

I'm beginning to think that this is what happened, ie that it's a mistake my getting a pension at all...

I didn't transfer any prior benefits into the scheme and it's a private company scheme.

Sue_S

Brynsam wrote: »

Looking at the date - early 1980s - few pension schemes were computerised and the scope for error was greater, because there were no automated checks and balances as there are now (albeit still with plenty of scope for error!). I suspect that, as suggested above, a CEP was paid but the member record wasn't correctly updated. In OP's shoes, I'd leave well alone and far from being disappointed by the lack of GMP, I'd be delighted there was any pension at all.

Yes, I think this is the way to go although £452.11 per annum is hardly going to be life changing :rotfl:

JoeCrystal

Sue_S wrote: »

"In line with RPI subject to a minimum increase of 3% and a maximum increase of 5% per annum compound."

That is pretty nice indexation! Not good as uncapped but pretty good, especially the minimum increase of 3% per annum!

xylophone

https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Quick_SPOT012_V1.7.pdf

Would you wish to consider commutation if it is on offer?

Sue_S

xylophone wrote: »

https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Quick_SPOT012_V1.7.pdf

Would you wish to consider commutation if it is on offer?

Yes it is on offer and I’d love to take it but as I have a DC pension pot over £30k it’s not possible. I’ve asked them for a CETV and will probably transfer it into my Sipp.

xylophone

Yes it is on offer and I’d love to take it but as I have a DC pension pot over £30k it’s not possible. I’ve asked them for a CETV

Did you read about the "small pot" rule in the link?