McCloud question on Added Pension

Bluecheesedog

I have a question about the implications of the McCloud judgement. I was on Premium before being transferred to Alpha in 2015. I eventually want to retire as early as I can (pre 60 if poss) so I am much more attracted to Premium rather than Alpha ie 60 retirement age vs SPA.  As such if I had have stayed in Premium, I would have been more inclined to go for Added Pension over the last 6 years however having had to move over to Alpha, I was unable to do Added Pension on Premium. Will I get the chance to rectify adding to Premium for those 6 years as part of post McCloud world? I have no interest in Added Pension or EPA for Alpha as it would be too much of a later retirement age.

hugheskevi

I was on Premium before being transferred to Alpha in 2015. I eventually want to retire as early as I can (pre 60 if poss) so I am much more attracted to Premium rather than Alpha ie 60 retirement age vs SPA. 

Why put so much emphasis on normal pension age? You can take alpha at any time from age 55 with actuarial reduction, and if taken early at age 60 it is likely to result in a very similar pension to premium due to alpha's higher accrual rate (especially for Added Pension, as that is not affected by future salary change).

As such if I had have stayed in Premium, I would have been more inclined to go for Added Pension over the last 6 years however having had to move over to Alpha, I was unable to do Added Pension on Premium.

If you had set up a Premium Added Pension contract prior to 2015 you could have continued it after 2015.

Will I get the chance to rectify adding to Premium for those 6 years as part of post McCloud world? I have no interest in Added Pension or EPA for Alpha as it would be too much of a later retirement age.

There is no indication in the Consultation Response document that Added Pension purchases will be opened up in the pre-2015 scheme. It would be very surprising to permit contributions for a previous year as it is a key principle that pension tax relief is only available for the year in which the contribution is made.

However, if you were to purchase alpha Added Pension in the current year (2020/21) and in 2021/22 then it would be converted into Premium Added Pension if you were to choose to receive Premium pension when you make your choice of pension scheme. Note the deadline to purchase Added Pension in 2020/21 is 17th Feb.

Bluecheesedog

Great points. Thanks for your advice

diddyflanker

You could try to claim a 'contingent decision' was made but I don't fancy your chances. A.96-A.98