BTPS State Pension Offset

Ddat

I am in the BTPS Section B scheme. I have been looking at quotes to retire at 57 and take my pension straight away. I realise when I reach SPA a state pension offset will be deducted. The current amount quoted is around 10% of my annual pension. The annual pension increases each year with inflation and the offset figure increases 'broadly in line with National Average Earnings (known as section 148 orders)' So my questions are as follows:
1) How is the state pension offset originally calculated?
2) In the next 10 years up until SPA, could the offset increase at such a rate that it takes a large chunk of my annual pension or will it likely to remain around 10%? I realise no one has a crystal ball but looking to gauge worst case scenario.

Thanks for your time.

xylophone

How is the state pension offset originally calculated?

https://www.btps.co.uk/MediaArchive/PensionGuides/BTPS Pension guide (with AVC) - V0.1.pdf

If you were an active member of Section B or Section C of BTPS from 6 April 2009, the State Pension Offset will reduce your BTPS pension once you reach your State Pension age.

What is the State Pension Offset?

A permanent reduction to your annual BTPS pension when you reach State Pension age. It’s important to look at the figure we provide in your Pension Quote, or on your portal quote, for your State Pension Offset. Be aware though that the figure will rise broadly in line with National Average Earnings (known as Section 148 Orders) each year so it will be higher when you reach State Pension age.

You may be taking your pension several years before you reach State Pension age so it’s important to factor in this future reduction when making your pension choices.

 To calculate the State Pension Offset, we use a fixed formula that’s been prescribed in BTPS Rules since April 2009.

You can ask the Scheme Administrators  for a copy of the relevant section of the Rules.

See also

https://www.btps.co.uk/MediaArchive/SchemeSite/BTPS State Pension Offset factsheet (March 2021).pdf

Have you obtained a State Pension Forecast?

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

Ddat

Thank you for the information, I have obtained a pension quote and will get the full amount. I haven't had a lot of luck with the scheme administrators but will try again.