Barclays 1964 Pension Scheme - thoughts on transfer?

xylophone

https://www.gov.uk/guidance/how-to-calculate-your-scheme-members-guaranteed-minimum-pension

Fixed rate revaluation
Schemes that were COSR schemes before Defined Benefit contracting-out abolition, can revalue a leaver’s GMP rights by a fixed rate as an alternative to section 148 revaluation.

The GMP amount calculated at the date of leaving is revalued by a compound fixed percentage for each relevant tax year after the member has ceased to be an active member of the scheme, up to and including the tax year before GMP payable age, or death if earlier.

xylophone

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

post 24

Boston2000

Thanks xylophone. I have to say, they do appear to make it bloody complicated! Surely it can’t be difficult for WTW to simply tell me what the pension figure will be once I reach 60, it’s a DB Scheme after all!

hyubh

Boston2000 wrote: »

Firstly, have I interpreted the Scheme correctly insofar that my calculations project an annual pension of £2,349 at 60?

If you are 60 in August 2025, then I make that 37 complete tax years, and therefore a GMP at GPD of £2,766.16 (i.e. 135.20 x 1.085^37).

Would that amount increase over time?

Unlikely, unless the scheme gives above-statutory increases as a 'simplifying' measure. Although, being pre-88 GMP, the likelihood diminishes further.

Also, Barclays say the pension at Date of Leaving (1 October 1998) was £135.20. I left Barclays in January 1988, so is this the date of this Scheme finishing?

Assuming the scheme (or this particular section of the scheme) ceased contracting out in 1998, this is possibly a GMP reconciliation mix-up.

In a nutshell, due to the end of contracting out full stop in 2016, there was (and at the fag end, still is) a big GMP reconciliation exercise between HMRC and individual schemes, including closed ones. Different processes were set up for schemes that had already ceased contracting out ('SWS' process) vs. ones that contracted out to the bitter end ('SRS' process), and for the former, HMRC provided data with figures as at the scheme's contracting out ceased date, rather than at an effective date meaningful for the individual member. It could be that the person at WTW who handled your query just got confused between the two, and/or perhaps the HMRC GMP data did. Definitely worth clarifying (and emphasising the point that £135.20 on your actual date of leaving is the correct one).

If so, does the growth of the GMP at 8.5% start from 1998 or from when I actually left in 1988?

Starts from when you personally ceased contracting out with the scheme, so 1988.

If 1998, the future value at 8.5% per annum is £1,039, which is obviously a significant difference.

Indeed.

Boston2000

Thanks all for the replies. The main challenge I fear, even if I decide it makes sense to transfer, is finding an IFA who won’t charge me a fortune to do it, particularly as it’s a relatively small sum.

xylophone

The fact that the pension is all pre 88 GMP (and therefore that the scheme does not have to pay increases in payment) might incline a PTS to give you a positive recommendation.

Mitz55

Hi, was this ever resolved? I'm in the same position with the Barclays 1964 pension. Very similar figures and wondered if you managed to get a transfer done?