Deferred DB pension quotations fluctuating

mbee123

I'm a deferred member of the BT Section C DB scheme and my total annual pension at date of leaving in May 2011 was - £13,644
I regularly get quotations from the Scheme Portal and they seem to fluctuate quite a lot, I though this figure would go steadily up but as can be seen I'm below level's of 2 years ago. Is this normal and what are the reasons for this fluctuating

Revalued annual pension quotes
19/02/21 - £15,846
18/12/20 - £16,513
8/2/20 - £15,785
4/3/20 - £15.724
6/12/19 - £16,205
25/09/19 - £16,206
20/5/19 - £15477
 

Thrugelmir

Are these at retirement or drawing the pension early? 

TVAS

Why haven't you directed this enquiry to the BT scheme as they are the ones who have provided the figures. 

Marcon

mbee123 said:

I'm a deferred member of the BT Section C DB scheme and my total annual pension at date of leaving in May 2011 was - £13,644
I regularly get quotations from the Scheme Portal and they seem to fluctuate quite a lot, I though this figure would go steadily up but as can be seen I'm below level's of 2 years ago. Is this normal and what are the reasons for this fluctuating

Revalued annual pension quotes
19/02/21 - £15,846
18/12/20 - £16,513
8/2/20 - £15,785
4/3/20 - £15.724
6/12/19 - £16,205
25/09/19 - £16,206
20/5/19 - £15477
 

I wonder if the first post in this thread might just answer your question: https://forums.moneysavingexpert.com/discussion/5962314/rules-on-using-occupational-pensions-revaluation-orders

mbee123

Thrugelmir said:

Are these at retirement or drawing the pension early? 

These figures are at retirement
Marcon said:

I wonder if the first post in this thread might just answer your question: https://forums.moneysavingexpert.com/discussion/5962314/rules-on-using-occupational-pensions-revaluation-orders

It seems to make sense when looking at my figures

TVAS - I'll contact BT and raise the question with them..

caveman8006

Marcon said:

mbee123 said:

I'm a deferred member of the BT Section C DB scheme and my total annual pension at date of leaving in May 2011 was - £13,644
I regularly get quotations from the Scheme Portal and they seem to fluctuate quite a lot, I though this figure would go steadily up but as can be seen I'm below level's of 2 years ago. Is this normal and what are the reasons for this fluctuating

Revalued annual pension quotes
19/02/21 - £15,846
18/12/20 - £16,513
8/2/20 - £15,785
4/3/20 - £15.724
6/12/19 - £16,205
25/09/19 - £16,206
20/5/19 - £15477
 

I wonder if the first post in this thread might just answer your question: https://forums.moneysavingexpert.com/discussion/5962314/rules-on-using-occupational-pensions-revaluation-orders

Yes, this is almost certainly the issue here, as 2011 was a relatively high inflation year (5.6% yoy in Sep). This means that any quotes you have to bring your pension into service before the anniversary date of your leaving service (31 May?) will be about 4% lower than for dates after the anniversary. This difference (about £600 pa in your case) is the equivalent to a lump-sum hit of around £25k if you are on the wrong side of this anomaly - make sure you bring your pension into payment after May!!

Here is another thread on this subject:

https://forums.moneysavingexpert.com/discussion/comment/77970115

Marcon

mbee123 said:

Thrugelmir said:

Are these at retirement or drawing the pension early? 

These figures are at retirement
Marcon said:

I wonder if the first post in this thread might just answer your question: https://forums.moneysavingexpert.com/discussion/5962314/rules-on-using-occupational-pensions-revaluation-orders

It seems to make sense when looking at my figures

TVAS - I'll contact BT and raise the question with them..

Don't think you need to - the question seems to have been answered, which is presumably why you posted here in the first place!

mbee123

Thanks a lot for the explanation, i did raise it with BT but they came back with a response saying the portal was inaccurate etc..
I will keep an eye on quotes to check it tallys up with above

TVAS

There you go you have the answer from the source.  If I was in your shoes I would get a valuation once a year. 
Ask the scheme the month the pensions not in payment are increased and get a quote the next month. Thereafter the same month every year.  

Stop getting regular quotes. The reason why schemes allow this is because they want you to leave a valuable DB pension. They want you to go all goggle-eyed with the large transfer value so you transfer away from the scheme using a high transfer value as justification which it is not.    

Thrugelmir

mbee123 said:

Thrugelmir said:

Are these at retirement or drawing the pension early? 

These figures are at retirement

Then inflation will be constantly be fluctuating when projecting forward. The easiest way to look at the figures is the value today. Inflation linking isn't going to give you any greater buying power. There's no investment growth.