Guaranteed Minimum Pension

xylophone

Yes, I've made enough NI payments for full state pension. 

What exactly does your forecast say?

It was actually from 1982

You worked for the company from 1982 - 1987?

Or from 1977-1982?

Either  way, all pre 88 GMP and Fixed Rate revaluation still 8.5%.

Ianthegolfer

xylophone said:

You were in a defined benefit pension scheme between 1975 and 1980?

The scheme had contracted out of SERPS and therefore from 1978, had to  guarantee to pay you a pension that was at least as great as you would have received had you remained contracted in to SERPS.

You say that you took a return of contributions when you left the employer so don't understand the GMP.

I recall another  poster who described exactly the same position - he had left with (as far as he remembered) a  refund of contributions and yet was contacted years later to be told that he still had a GMP.

It is likely that the £4300 represents the original GMP when you left  (  about £115?) revalued at 8.5% compound for 43 years - it would be the annual amount payable.

As it is all pre 1988 GMP,  there is no obligation on the scheme to pay any increases on the pension once it comes into payment.

Have you obtained a state pension statement?  A COPE is shown?
https://www.gov.uk/check-state-pension

Thanks for your help with this. 
State Pension statement says I will have full SP after 2 more years.  Also that I have COPE(?) currently at £64.06week. Does this explain it ?
 

Ianthegolfer

Maximum State pension after 2 more years contribution. Although I have 4 years before I reach statuary retirement age and can claim it. (Projected at £175/week).


COPE (?) currently £64.06 which will not affect the sp.

xylophone

 State Pension statement says I will have full SP after 2 more years.  Also that I have COPE(?) currently at £64.06week. 

The COPE is the Contracted Out Pension Equivalent.

At 6/4/16, two calculations were done

NI years (up to 30)/30 x £119.30 (full basic state pension) + ( SERPS/S2P - Deduction for Contracting Out).  Old Rules

{NI years (up to 35) x £155.65 (Full New State Pension)} - Contracted Out Pension Equivalent.  New Rules

Your starting amount was the higher of the two and in your case was  given under Old Rules.

The starting amount was less than a full NSP and you still had a number of years before you reached State Pension Age.

You could improve your starting amount  up to a full NSP by contributions or credits post 6/4/16.

Are you still paying NI/receiving credits/making voluntary contributions so as to reach full NSP?

You may find this of interest - it is very detailed, even to covering Fixed Rate Revaluation.

 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

Ianthegolfer

Yes. I have 2 years to make it to full nsp. After that I cannot increase nsp any more , but cannot take it until age 66 (4 years). I am still paying NI, as not retired,yet.

xylophone

You will be able to take the GMP at age 65 - don't forget that it is taxable and that the provider has no obligation to increase pre 88 GMP once in payment. 

You might be able to  postpone taking the GMP (check with the scheme).
 
 If postponed for seven complete weeks or more beyond the GMP age  (65 for men), an increase of at least 1/7% for each complete week that payment is postponed must be applied.

Ianthegolfer

Well thanks for all your input on this. 
I was dithering over retiring earlier with a slightly lower private pension, and waiting for NSP after making full NI contributions. This has been a nice surprise.
I'm sure that you are spot on with your information, but I'll come back to you after I get a reply from the company involved.
Again; thanks for your advice. 

xylophone

thanks for your advice. 

Just suggestions - advice not permitted on the boards!

Do let us know how you get on!

Marcon

Ianthegolfer said:

It was actually from 1982

Then it won't increase once in payment.

nigelbb

I was in exactly the same situation. I worked in the NHS 1978-1982. I was opted out of SERPS & contributing to the NHS pension scheme. Under the then current rules when I left I was obliged to take a refund of contributions. At the time it didn't bother me in fact on the contrary the £800 refund seemed like a nice windfall.

Last year I actually contacted the NHS pension scheme to ask whether I had a GMP owed to me. They took months to reply & eventually said they couldn't find my records but assured me that I had been reinstated into SERPS as though I had never been opted out. I considered chasing this up with HMRC & DWP to confirm this was really true but in the end didn't bother. The OP's story has made me think that I really must follow this up just in case the NHS really do owe me a GMP from around 40 years ago.