Pension Equalisation (Barber ruling)

DT2001

When you know your GMP pre and post 88. You can calculate its value when you reach 65. WTW wouldn’t do the calc for my deferred Barclays one (citing that rules might change between that date, a few years ago, and 65). The pre 88 amount will not increase, the post 88 by CPI max 3% and the excess by your schemes rules.
If you draw your pension early will your pension increase at 65 when the GMP element is revalued?

I left Barclays in 1995 and my GMP was £1339. By the time I reach 65 it will be £9.5k having had 30 years of revaluations. I drew my pension at 51 and the increases in the excess from that date to 65 will be franked (So my pension was about £6k at 51 - excess was 4661 - At 64 my pension will be about £8.5k. At 65 it will be £4661 + £9.5k being the revalued GMP).

Scheme rules differ so check and recheck as WTW were not the best when explaining the matter to me. 

When you have more figures and information post again. Xylophone was very helpful with my query and posed questions that I didn’t realise needed asking!

Froggitt2

DT2001 said:

When you know your GMP pre and post 88. You can calculate its value when you reach 65. WTW wouldn’t do the calc for my deferred Barclays one (citing that rules might change between that date, a few years ago, and 65). The pre 88 amount will not increase, the post 88 by CPI max 3% and the excess by your schemes rules.
If you draw your pension early will your pension increase at 65 when the GMP element is revalued?

I left Barclays in 1995 and my GMP was £1339. By the time I reach 65 it will be £9.5k having had 30 years of revaluations. I drew my pension at 51 and the increases in the excess from that date to 65 will be franked (So my pension was about £6k at 51 - excess was 4661 - At 64 my pension will be about £8.5k. At 65 it will be £4661 + £9.5k being the revalued GMP).

Scheme rules differ so check and recheck as WTW were not the best when explaining the matter to me. 

When you have more figures and information post again. Xylophone was very helpful with my query and posed questions that I didn’t realise needed asking!

For whatever reason, WTW say the valuation is nothing to do with them and have passed me onto Sainsburys. I have now started an email conversation with Sainsburys. Will update here as/when.

Froggitt2

mark55man said:

This thread has been  real roller coaster!!.  
OP - good luck and I hope you manage to make this work for you,  I would be tempted to "early" retire well in advance to ensure you get the early retirement figure, although at GMP revaluation rates don't go too early.  There was a thread on here ages ago that stuck in my mind, that sometimes increases in pension income occur on the anniversary of you joining the scheme or at tax years, whereas payment calculation is on your birthday.  Therefore building a timeline of quotes around join day/month, tax year, birthday.
It may be nugatory, but doing it for my DB scheme did show some non-linearity. 

Re GMP rates, yes at 7% compound interest, definitely worth waiting. 

Do you know if the online WTW calculation tool takes into account birthday/tax year? If it does I could run it before and after both for the next few years. Alternatively, is there a spreadsheet, or does anyone have a spreadsheet that's clever enough?

mark55man

I'm afraid I can't help with WTW, I was making a general observation about something I remembered because it seemed quite illogical.  In your case, I think you just need to make sure you start early retirement in good time so they don't shut the door on it 

DT2001

Your GMP element increases until 65 irrespective of when you take your pension.
If you take a pension early you need to check scheme rules how this affects the calculation at 65. Is there an element of franking increases since 1st drawing.