How to ask for estimate of benefits from deferred GMP pension

WobblyDog

I have a deferred pension from an employer I worked for between 1990 and 2000. The employer was initially a Civil Service employer, privatised around 1995. I believe most of the pension is a GMP pension, and I have a benefits statement from 2000. I'm male and currently 50.
I recently wrote to the pension scheme asking for an estimate of the benefits at 65. They replied saying they couldn't provide an estimate, because the non-GMP component would revalue at a rate that can't be exactly forecasted. To my surprise, they also said that I could start drawing the pension at 60 "with no reduction in benefits", which appeals to me.
Can I insist that the scheme give me an estimate of benefits? Also, am I correct in thinking that although I could start drawing the pension at 60, it's likely that none of the annual revaluation of the GMP component (at 6.25% per year since 2000 I think) will apply until I'm 65?
Like most DB schemes, it is worryingly underfunded, so I would like to avoid adding to its costs by generating excessive work for them.

Dazed_and_C0nfused

Can I insist that the scheme give me an estimate of benefits?

What annual uplife/inflation increase figure would you like them to use for the next 10 years?

10%, 2%, 3.64%???

WobblyDog

To clarify, I'm not too bothered about an estimate for the non-GMP part of the pension, because I suspect it is much smaller than the GMP part. I'm trying to work out what kind of numerical estimate I can reasonably ask the scheme to provide me with. It's a bit frustrating that the total nominal "value" of my benefits in the scheme is probably above £100,000, but I haven't had any kind of numerical statement of my entitlements from the scheme since I left the employer in 2000. I understand there have been legislation changes since then.

xylophone

You have a Deferred DB pension with GMP.
Do you have the statement of deferred benefits from when you left showing post 88 GMP and excess? What exactly does it say?
What does your scheme booklet have to say about how benefits revalue in deferment?
https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/

To my surprise, they also said that I could start drawing the pension at 60 "with no reduction in benefits", 

If the scheme's normal pension age was 60 (it might have followed on from the CS Scheme where NPA was 60), this is not surprising.

What does your scheme booklet have to say about GMP in payment for male members of the scheme?

Have you obtained a state pension forecast?

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

WobblyDog

Thanks for the reply.

Do you have the statement of deferred benefits from when you left showing post 88 GMP and excess? What exactly does it say? What does your scheme booklet have to say about how benefits revalue in deferment? The statement I received shortly before I left didn't mention GMP. I made an enquiry in 2013 (which I forgot about) and have a letter stating that the GMP component when I left in 2000 was £3113 per year (revaluing at 6.25% per year), and the non-GMP component was £396 per year (revaluing at CPI, capped at 5%).

What does your scheme booklet have to say about GMP in payment for male members of the scheme? The scheme booklet (from 1996) doesn't distinguish between the sexes. It says that once in payment the GMP component increases in-line with "inflation", and the non-GMP component increases in-line with RPI, capped at 5%.

The booklet says that my Normal Retirement Date is my 65th birthday, but also the Early Retirement section says "if you are a PCSPS Member no reduction will be applied in respect of the period between 60 and your Normal Retirement Date". I was once a PCSPS member.

The booklet also says "it may be necessary to restrict the early retirement option...if your GMP represents a major part of your early retirement pension". I think I need to ask the scheme what that means for me, it sounds like it might be a problem.

I obtained a State Pension forecast in 2014, which said I had would get £99 per week basic pension, and £18 per week Additional StatePension, based on 27 qualifying years.

ffacoffipawb

WobblyDog said:

Thanks for the reply.

Do you have the statement of deferred benefits from when you left showing post 88 GMP and excess? What exactly does it say? What does your scheme booklet have to say about how benefits revalue in deferment? The statement I received shortly before I left didn't mention GMP. I made an enquiry in 2013 (which I forgot about) and have a letter stating that the GMP component when I left in 2000 was £3113 per year (revaluing at 6.25% per year), and the non-GMP component was £396 per year (revaluing at CPI, capped at 5%).

What does your scheme booklet have to say about GMP in payment for male members of the scheme? The scheme booklet (from 1996) doesn't distinguish between the sexes. It says that once in payment the GMP component increases in-line with "inflation", and the non-GMP component increases in-line with RPI, capped at 5%.

The booklet says that my Normal Retirement Date is my 65th birthday, but also the Early Retirement section says "if you are a PCSPS Member no reduction will be applied in respect of the period between 60 and your Normal Retirement Date". I was once a PCSPS member.

The booklet also says "it may be necessary to restrict the early retirement option...if your GMP represents a major part of your early retirement pension". I think I need to ask the scheme what that means for me, it sounds like it might be a problem.

I obtained a State Pension forecast in 2014, which said I had would get £99 per week basic pension, and £18 per week Additional StatePension, based on 27 qualifying years.

In 10 years time (age 60) the GMP will be about £19,200 and the current amount is about £10,400.

xylophone

I obtained a State Pension forecast in 2014, which said I had would get £99 per week basic pension, and £18 per week Additional StatePension, based on 27 qualifying years.

Obtain a new state pension forecast (link above).

https://www.barnett-waddingham.co.uk/comment-insight/blog/what-is-a-gmp/

If a member asks to take early retirement, a check should be made to see if the early retirement pension will be sufficient to cover GMP at entitlement age. If not, the member may be barred from retiring or from taking the maximum cash lump sum, or if the scheme rules allow, the member could receive a ‘step up’ at GMP entitlement age.

However. it appears that age 60 would not be early retirement for you as it seems that you have a right to take full benefits at the age appropriate to the old CS Scheme.
You do need to find out what will happen at 60 in respect of the GMP - will the scheme pay the GMP revalued to age 60 and the revalued excess or will it pay the unrevalued GMP and the revalued excess, making adjustments at age 65 (male GMP age)?  
The scheme must pay you at least your GMP revalued to GMP age once you reach age 65.
And once you reach age 65, it is normal for the pension to be split into GMP and excess.
The scheme has no obligation to increase the GMP element (all post 88 in your case) beyond 3% CPI.