ICI pension help

scout13

I have an ICI Defined Contribution pension for which I have been getting Retirement Statements since 2018. (I left ICI in 1985). The figures on the statements were:
2018 - £6511 lump sum & £3265 pa
2019 - £12049 lump sum & £3265 pa
I rang and spoke to them in 2019 as I didn't want to take the pension then, but the lump sum of £12k would have come in handy to pay off debts. I was told that all the amounts (lump sum, annual payment and GMP) would increase if I didn't take the pension, so I decided to leave it another year, expecting the lump sum to rise again.
In 2020 I didn't receive a Retirement Statement.
In July I received one for 2021 and was shocked to see that the lump sum available had decreased.
2021 - £7411 & £3750 pa (GMP has increased)

I have spoken to them a number of times since I got the statement.  I asked for an explanation as to why the lump sum has decreased by £4.5. I then received a letter with information about the GMP and nothing about the lump sum figure. Jump forward 6 weeks and numerous phone calls later, and an advisor rang to talk through it with me. I understood some of what was said but not all. They were supposed to send me a letter detailing what we spoke about. I never received it. The advisor said she would ask the trustees to back date my pension to 2019.
I have asked what the figures were in 2020 more than once but I can't get an answer from them. I have now received an updated 2019 statement, and the lump sum has risen to £17k, with the pa amount staying at £3265. When I asked why I hadn't had a statement in 2020, I was told I hadn't requested one, but they have always just sent them - I have never requested one.
So, could anyone help me out here? I am wondering why it has increased by £5k within the same payment year and also wondered how I find out what the figures would have been for 2020. I was told that the trustees would look at backdating it but not to expect them to. Is it possible that the 2020 lump sum would have been even higher? To be honest I don't know if they would even back date to 2020 if the figures were better, I would have to ask again. I obviously don't want to lose out on any extra money that I could be inline for.
To recap, can anyone tell me why the figure changed in the same year, and if I should persevere with trying to get the figures for 2020?  I also need to find out if the annual payment will continue to rise after I start taking my pension. 


As you might have guessed I am struggling to understand how this all works. I'm 61, in recent ill health, which isn't going to improve,  and would like to use this money to pay off debts in case my health fails even further, so any help would be greatly appreciated. I will be speaking to them again but I thought I could probably get a clearer answer here.

Dazed_and_C0nfused

Is it definitely a DC scheme not DB as the way you have set things out (lump sum and set pension) looks more like a DB scheme than a DC one?

scout13

Sorry, it is DB. The letter confused me as it talks about the benefits of having a DC!

xylophone

https://icipensionfund.org.uk/deferreds/

I wonder if the Scheme Booklet would help clarify?

xylophone

And are you male or female?

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

scout13

I'm female and my retirement age for state pension is 66.
I've looked through the booklet and their website and can't find the answers there.

xylophone

my retirement age for state pension is 66.

Yes, but have you checked out your forecast for planning purposes?

As a female, you reached your GMP age at 60. You did not take your pension at this age so that certain statutory  increases would have been applied to this part of your pension.

In addition, while NPA for the scheme was 62, as a female  who joined before November 1993, you were entitled to take your pension from age 60 without actuarial reduction.

Your scheme booklet says

If you are/become a Deferred member and decide to take late retirement, your pension will be increased (using a formula determined by the Actuary) reflecting how long you delay before taking it. 

Are you about to bring your pension into payment?

Details of how the pension and lump sum are calculated are on page 7 of the booklet.

It seems to me that rather than historic statements you need to know

 1.  the maximum lump sum available if you choose to commute up to the 25% mentioned in the booklet.

2.    the annual pension available if you choose not to commute any part of the pension to generate a lump sum.

3.  the total annual pension payable broken down into  the GMP and the excess over GMP.

This is important because once the pension comes into payment, as all your GMP was accrued pre 1988, you will not receive any annual increase on the GMP part of the pension. See page 9 of the booklet.

1. Your pension, including any Supplementary Pension earned for Pensionable Service on or after 6 April 1997 (but excluding any Supplementary Pension earned for Pensionable Service before
   6 April 1997 and any Guaranteed Minimum Pension, as further discussed below), will increase in November each year in line with increases to the Retail Prices Index, subject to a maximum annual increase of 5%. Any additional increases are discretionary and require the consent of both the Company and the Trustee.

2. Any Guaranteed Minimum Pension and any part of the Supplementary Pension earned for Pensionable Service before 6 April 1997 will increase in accordance with statute. (Please note that there will be no increase to any Guaranteed Minimum Pension earned before 6 April 1988.) 

And you should insist on their sending you the promised letter setting out the details of your calculation etc.

scout13

Thanks for the advice. I'm looking at historic paperwork because the trustees have agreed to back date my pension, so it's relevant to me. The statement gives me all the figures for each option that I have; I've already decided to take the lump sum with an annual payment, as due to ill health I want to make sure my debts are paid off.
The booklet doesn't tell you how the lump sump is worked out and this is the information I'm trying to find out about. Why would the lump sum amount change by £5k in the same year? 
I'll chase them for the letter that explains it, but I was hoping someone on here could explain it to me, as their letters are not the easiest to understand.

xylophone

The booklet doesn't tell you how the lump sump is worked out and this is the information I'm trying to find out about Why would the lump sum amount change by £5k in the same year? 

The booklet says

When you take your benefits, you will be given
a one-off opportunity to give up some of your pension for a tax-free lump sum. You can normally take up to 25% of the value of your pension in this way, so long as this doesn’t reduce your pension below a certain level.

The Fund Administrator will send detailed figures to you when you retire.

The "certain level" will be the GMP. 

 From the information available, I don't think that anyone on the forum can explain the reduction to which you refer but help with understanding the letter could probably be offered.

scout13

Thanks again for the info and sorry for the delay in replying.
I have spoken to them again and they said the change in the Lump Sum depends on the factor... but couldn't tell  me what that 'factor' is.
I've asked for the letter with the explanation again but still no sign of it.
I'll keep asking before I sign anything.