need some to explain something to me please

goldenoldie12

hi sorry if this sounds stupid , I am retiring late (past my retirement age of 65) I have been told by a friend that I could be due enhancements and an uplift to my pension due to my age and working past my retirement age.

he tried to expplain it to me but hes not the best and explaining things so it left me a tad confused.

Could some one please explain what an uplift is
Could some one please explain enhancements
could someone explain the difference between the too and if they are both good to get if i qualify . I am in a final salary scheme


thanks for help

JoeCrystal

How about asking your scheme administrators or check your scheme booklet for clarification hmm? We can't read your scheme rules from here. Having said that, some DB pension scheme does enhance the pension should it be taken after the default age.

goldenoldie12

sorry was not asking that was asking what enhancements are, what uplifts are and what is the difference between the two not if I qualify for them .

Just a basic understanding of what they mean in context with late retirement .

xylophone

hi sorry if this sounds stupid , I am retiring late (past my retirement age of 65) I have been told by a friend that I could be due enhancements and an uplift to my pension due to my age and working past my retirement age.

When did you become eligible for state pension? Are you male or female?

Were you working for this company between 1978 and 1997? The scheme was almost certainly contracted out so there will be a GMP.



If a members actual retirement date is postponed for at least seven weeks after their GMP Pension Age then statutory late retirement increases will apply to the GMP.


Some (but not all) DB schemes offer "late retirement increases" where a member has not drawn the pension at normal scheme retirement age.

Example

http://www.mnopf.co.uk/late_retirement.html

What does your scheme booklet say on the subject?

jimi_man

Basically, a DB pension is a ‘pot’ of money set to pays out a specific sum of money over a set period of time usually until you die. If you retire earlier than this date then the ‘pot’ will have to stretch further and so pay out less per year – a reduction; conversely if you retire later it doesn’t have to stretch as far and so could pay out more per year – an enhancement or uplift. That’s how I understand it with mine.

xylophone

DB pension is a ‘pot’ of money

There is no "pot" in a DB Scheme - a DB pension is in essence a "promise to pay" the benefits for which a member has qualified during his time in the scheme.

The benefits will be paid for life/for the life of a widow/er - there is no "pot' to run out, as it were.

goldenoldie12

sorry I am In the teachers pension might have mislead by not explaining this

goldenoldie12

i am a widow as well not looking to get remarried , one child who is 45 so they will not get a pension when i finally pass

goldenoldie12

i could have retired at 60 but i have carried on for a further 10 years

goldenoldie12

so an uplift means i will get more because i did not take my pension at the date i could 60 and left it for another ten years without taking it and retired at 70 .

ie pension at 60 was say £20000 but because i left it 10yrs and retired late it would be worth £25000 because of a late retirement uplift , plus i would get the additional 10yrs service on top of it. i have been on the TPI website and on there online chat and they are just as confused as me

coyrls

If you are retiring, you will be told what your pension will be, the applicability and meanings of uplift and enhancements will be neither here nor there; it will be what it will be.
If you are interested in how your specific pension amount has been calculated, you could ask for a breakdown, if it is not already provided to you when you are told what your pension will be.
[FONT=&quot]If you are interested in your scheme rules, you could ask for a copy.[/FONT]