state pension deduction

jipsy

Hi
I have been given an estimate of a small pension of under £8000 from a previous employer. Also mentioned is a State Pension Deduction of between £600 to £700. 
Excuse my ignorance but is this amount a one off or annual deduction?
Thank you for your help

AlanP_2

How old are you and can you take the pension now?

Some schemes offered a higher annual pension from say 60 (if that was the scheme retirement age) up to SP age and then paid a lower amount so that income was smoothed out a bit. It might be this, in which case annual from SP age or something else entirely.

To clarify ask the administrators.

Dox

Normally the purpose of a State Pension Deduction (found in defined benefit schemes) is to take into account the basic State Pension being built up throughout an employee's membership of the Scheme. Typically it permanently reduces the level of your occupational pension once you reach State Pension Age (or more likely what was State Pension Age at the time you were building up benefits in the scheme).

As the post above says, you need to ask the scheme's administrators to be quite sure how it operates in your case.

xylophone

Example
https://www.mandspensionscheme.com/i-have-taken-my-pension/my-pension/when-the-state-pension-deduction-is-applied#:~:text=In common with many DB,age State Pension was paid.
This is sometimes referred to as "clawback".

https://www.theguardian.com/theguardian/2001/nov/10/features.jobsmoney2#:~:text=Barclays first introduced clawback in,for every year of service.&text=Over time, the amount taken,of the basic state pension.

https://www.theguardian.com/money/2019/mar/30/ex-hsbc-staff-voice-anger-over-banks-pension-clawback

Note that it is not the same as the Contracted Out Deduction .