DHL PENSION

Westlands12

I’ve got a dhl pension which as been frozen for some time, it’s taken a bit of downward roll with Covid 19.
i rang them up & was told it’s a final salary pension (DC)  to cut a long story short I’ve been in touch with a financial advisor 
who told me that final salary schemes don’t fluctuate as they are not connected to the stock market also unable to take a 25%
tax free lump some. I’ve also got an Aon trust pension which I was hoping to combine the 2. Financial advisor said she is sending me letters of orthority so she can check them both out to be 100% what I say.  Is this ok as I have not committed my self at this time.
hope I’ve not overstepped the Mark.   Any comments grateful.

Dazed_and_C0nfused

It is highly unlikely to be frozen.  It is more likely to be deferred.

Final salary is defined benefit (DB) not defined contribution (DC).

What made you think it had taken a downward roll?

Some DB schemes do allow a tax free lump sum but it's fair to say it isn't going to be "25%" because there is no pot with a DB pension, you have a promise to pay you £x/year.

If there is a TFLS it's going to be say 3x the annual pension. 

Why do you think it might be beneficial to give up the guaranteed DB pension from DHL and go with the vagaries of the stock market?

Westlands12

Thanks for the quick reply, when I rang DHL they said my fund was a final salary benifit 
Guaranteed minimum pension, you are right it’s Been deferred  financial advisor said she wants to make sure it’s a final salary & not a defined contribution  If it definitely is a final salary (Defined Benifit)  it’s not advisable to transfer.  Don’t know anything regarding pensions, I’m 63yrs old & feel I’ve left it a bit late in life.

ps: what is a TFLS

ive seen the amount on my app & it’s lost About £1500,
fund is with DHL lifestyle Annuaty Default.

JoeCrystal

Westland12, have a read on your scheme website: https://mypension.dhl.co.uk/HomePage
How long have you been working for DHL? Maybe you got a membership in DHL DB pension scheme with and then was changed over to DC pension scheme recently so you got both sections? I think it is really important you need to clarify with the scheme administrators exactly what you got?
This page talks about DHL Lifestyle Annuity: https://mypension.dhl.co.uk/Investing 

Marcon

At 63 you need to be taking a much more active interest in something which will impact on the rest of your life.

Albermarle

ps: what is a TFLS

Tax Free Lump Sum .

AS suggested it sounds like you have two different DHL pensions. This is not so unusual . Many companies had DB( defined benefit/final salary ) schemes but then closed due to the high cost ( for the employer ) . In their place they introduced DC ( defined contribution ) schemes , where there builds up a pot of pot of money, which can be used to provide a pension income , but this income is dependent on how big the pot is .

Just guessing but it sounds likely this is the situation but best to speak to the company to clarify .

Some general reading could also be useful

https://www.pensionsadvisoryservice.org.uk/

Westlands12

I had a statement in 2018 stated DC funds with an amount per annum, it is now in a default fund called DHL LIFESTYLE ANNUATY DEFAULT & the amount per annum is about 
£700 less. I’ve emailed dhl for an up to date statement. Is this fund I’m in at the moment a
DB fund or DC fund or neither.  As I was told it’s a final salary benifit, 

The reason I ask as I was thinking of combining my Aon managed retirement pathway pension with my DHL pension if that’s the right thing to do. I guess I’ll have to wait for statement for clarification. Unless anyone would have any idea. Thank you.

xylophone

https://www.theguardian.com/money/2013/may/14/dhl-final-salary-pension-scheme

http://mypension.dhl.co.uk/MediaArchive/GeneralGuides/DHL GRP SIP September 2019 SIGNED.pdf

Albermarle

LIFESTYLE ANNUATY DEFAULT & the amount per annum is about 
£700 less. I’ve emailed dhl for an up to date statement. Is this fund I’m in at the moment a
DB fund or DC fund or neither.  As I was told it’s a final salary benifit, 

As I already 'guessed' you probably have both , hence the confusion.

The one where your money is invested as above is the DC scheme. Plus you have some benefits from a deferred DB scheme ( now closed ) 

However you can only be sure by talking to your employer.

Westlands12

Ambermarle  I think it’s the orther way round as my statement for 2018 states the value of DC funds Shown is an estimate & is not guaranteed. Now it’s been put in the 
LiFESTYLE ANNUATY as a default when they changed over,  so you think this fund is a dc fund.  I’m grateful for any info as it is confusing, that’s why financial advisor as asked for 
all the documentation.

[Deleted User]

Got a feeling this is a DC with a GMP underpin. I have exactly this as well (but not DHL).
The guaranteed benefits are the contracted out section of SERPS.
When you look at the pension it shows DC invested and also a small DB section (which is the GMP underpin)
I am currently transferring out of such a scheme.