Deferred Pension help please.

DT2001

JAG61NZ
As you had the figures for pension increases year on year did you do your own calculation?
I only ask as we know WTW replies as to why/how a figure is produced isn’t necessarily correct as there are glitches in the system.

xylophone

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…

Yes - Barclays applied the change when Mike  drew his pension (deferred 1994) aged 60 and I remember that it was also applied in your case (deferred 1995?) when you took the actuarially reduced pension at the age of 51 in 2011.

https://forums.moneysavingexpert.com/discussion/5865725/gmp-and-deferred-pension/130,000 Metro Bank customers to get overdraft refunds

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

No, as far as I can see, on the quotes she has, the GMP has been revalued at a fixed 7% but she has two quotes for the excess, one at Scheme Rate one at statutory rate.

https://forums.moneysavingexpert.com/discussion/6275266/deferred-pension-help-please/p3

https://forums.moneysavingexpert.com/discussion/comment/78411049/#Comment_78411049

JAG61NZ

Hi DT2001, yes I did work out the percentages applied manually I have posted it on here. I was always under the impression that when they told me my deferred pension had increased that was what had happened. My manual figure was higher than the Statutory figure so I wanted to know could they take something away from me which had already been given. I have not heard back on that and dont expect to. The Preserved benefits Report no longer runs for me it is not available the last time I ran it was 27 May which gave me the higher excess figure. The explanation being given that it uses the scheme revaluation figures. 

JAG61NZ

I have just pulled out all my old paperwork from conversations I had in 2014 with TW .

I actually enquired about early retirement ( I had forgotten this) as well as a QROPS move.

I was told the following - if I took my pension before NRD that the calculation would include an element of presumed future increases. A reduction factor would then be applied to the assumed amount.

They also confirmed the equivalent to my GMP would be put into payment on my Early retirement date and that when I reached 60 my benefits would then be split into GMP and GMP excess.

This information concurs with the Early retirement figures given from the Reports. 

I now just require TWT to confirm nothing has changed and if the Early Retirement option is still open to me.

I would like to go Early as it helps with sorting the Tax out.

Apologies for not finding this sooner.

JAG61NZ

The reduction factors are quite large which was probably why this was never even thought of taking back then and dismissed and forgotten. Figures given 6/11/2014.

Year early        Reduction factor
0                             1.0
1                              0.917
2                              0.842
3                              0.774
4                              0.712
5                              0.656

JAG61NZ

This is so embarrassing as I was also told - but in my defence laws and rules can change and my memory is not as good as it was.

The SPD will be applied to my benefits on my Birthday 2028 - state Pension date.

JAG61NZ

So I think that is me all sorted out if I can take an Early Retirement I will if TWT can confirm everything works as they explained in 2014 and the option is still open or I take the Normal Retirement in December.

xylophone

Let us know what the final result is.

JAG61NZ

Will do Xylophone thanks again for your help. I am going to relook over your QROP Pru link not for this but for my existing one.
The funny thing is the last thing the PRU wrote to me was please get in touch with us if you decide to return. Your link had a lot of QROPS transfer information, it would be good to know the situation if I returned and also what a BCE is and the lifetime allowance. It pays to be informed and have Knowledge 

DT2001

Good luck, we just await WTW’s confirmation. All of this is more difficult than it ought to be.
The reductions for early drawdown change. I was lucky compared to your figures as I got about 61-62% 9 years early. Even then the theoretical break even point was only mid 70’s however I took a punt on paying little tax on it before SPA and then luckily have been able to invest some of it.