Deferred Pension help please.

JAG61NZ

Back again you just cant get rid of me. Sorry Xylophone you posted as I was composing. Many thanks for the life time allowance links.

Yes if I had used the QROPS I would of used the same person I used for my DC he does a report with mainly the tax implications he would of looked into the inheritance would of pointed out the pros and cons, he is over here but they have someone in the UK aswell who would do the other side of things. He ran ideas past me when moving the Pru DC. He left it with me to approach him because he cant effectively chase me or appear to be putting on pressure. I had to provide evidence to the Pru that both he as my transfer expert and my Financial Adviser had not cold called or approached me. I pay a fee monthly for my Financial Adviser as I must have one to enter the qROPS, he basically vets what I do to ensure it doesnt effect the schemes qROPS status he also shares half the fees with the transfer agents as the agent has all the QrOPS knowledge and experience and guides my Financial adviser.

I like the scheme I am in, they have just been chosen as one of the government's default providers for the Kiwisaver the saving pension initiative over here.

hyubh

JAG61NZ said:

Ah ha well that has helped no statutory right to transfer if within 12 months of retirement. I wonder why they provided the transfer option. I also managed to produce a transfer quote last week

That means the scheme doesn't have to offer a CETV, not that it can't. You should explicitly raise the question.

JAG61NZ

Thanks hyubh. I believe I will stay with the pension decision. It gives me a more secure future. I have just checked my QROPS account and it has gone down so it highlights how things can change.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/78411924/#Comment_78411924

Ah ha well that has helped no statutory right to transfer if within 12 months of retirement.

The Pru link does point out

 Any scheme wishing to offer a member the right to take a transfer of their DB benefits within 12 months of normal retirement age will need to provide a non-statutory right to transfer.

xylophone

I will post if I hear back from WTW. 

Let us know what you manage to glean from WTW.

JAG61NZ

Hi there Xylophone

Something has been bugging me and I wonder what if anything if it has any impact.

When I queried the Annual review I received this reply.

" The annual 2021 increase will be applied to your pension in October. However as the normal retirement quotation is using statutory revaluation rates the value of your benefits is unlikely to change. If you retire at NRD the increase in 2022 will be 10/12ths of the annual increase amount. If however you elect to take early retirement prior to 1 October 2021 you will receive a pro-rata increase from the early retirement date to 1 October 2021 and then a full annual increase in 2022"

So if I go early what happens??

I can now get back onto the reporting system so I have ran early quotations.

The figures are not a lot less than the Retirement figure. It appears valuations for me increase after the third of the month which could be to do with the fact "calculations are based on a number of underlying actuarial assumptions and investment yield factors" that are updated around this time.

These are the figures
August 8761.59
September 8806.11
Review Cut off period referring to WTW response above.
October 8859.53
November same as NRD 8904.05

So if I went in September I would lose 97.94 per annum ( plus a percentage increase of this annually) and I don't think I would get an increase for October 2021 as its not quite a full month but should get a Full increase in 2022 as per WTW advice. I would also get 3 months or extra payments plus a longer period of time to sort the tax out with HMRC. At GMP date in December now what happens?

I think the August date possibly too early for processing and the October has passed cut off.

Does anyone know what happens at GMP after early retirement?

JAG61NZ

I should add the reports are Excess and GMP rolled into one it does not show what is GMP and what is Excess as a breakdown.

JAG61NZ

I have emailed WTW to ask if Early Retirement is an option for me and how would it change figures at GMP date and when would any increases be applied. 

xylophone

The information we have available on the mechanism (let's not say machinations  ) of the Barclays 1964 Scheme come from Mike F and DT (both of whom are male).

This means that for both GMP age is 65 and therefore does not align with SPA.

DT took his Barclays pension much earlier than either age and suffered an actuarial reduction.

https://forums.moneysavingexpert.com/discussion/comment/74522265/#Comment_74522265

The basic difference between taking the pension at  NRA /before NRA appears to be that if taken before NRA, the GMP is revalued  and paid at the date the pension comes into payment whereas if the pension is taken at NRA (and before GMP age), the GMP is paid at the amount it was at the date of deferment and not revalued until GMP age.

https://forums.moneysavingexpert.com/discussion/4736856/barclays-final-salary-pension-gmp-excess-revaluation-anti-franking/p17

You are so close to both NRA and GMP age that there would be little difference in your quotes?

You'll need to wait for WTW to reply for a clearer picture.

DT2001

Xylophone you are wrong and right! In 2011 I was advised that sometime between August 2008 and June 2011 the treatment of GMP changed. “Revalued GMP would have been paid immediately. This method of revaluation was more generous than the Scheme rules permitted……This means that the amount of GMP accrued when you left the Bank is paid without revaluation when your pension commences. The revaluation is applied instead (in accordance with Scheme rules) when GMP becomes payable in full at age 65”

BUT
The quotes provided by WTW do not comply to that guidance HOWEVER do they take a pragmatic approach as they know there will be a step up at GMP age (60) which is imminent.

The OP’s excess alone should have been increased by RPI so is that the anomaly between her original quotes i.e. does the computer increase the excess + GMP by RPI

So actual retirement figures, say 3 months, before GMP should be excess revalued by RPI since leaving + GMP (as of leaving) all marginally actuarially reduced. At GMP age, step occurs.