Ex Barclays GMP pension

QrizB

ginnygold said:

Thanks for reply. I’m 60 in 2026, so it’ll be paid from then, not this year.

OK, so using this compound interest calculator - £119 plus 39 years at 8.5%pa gives £2866.

There may be subtleties that this doesn't fully consider (for example, I'm assuming exactly 39 full years) so it could be a bit more or less, but that's the ballpark.

ginnygold

Thank you so much, that’s really helpful! Very kind of you

xylophone

 am aware as it is pre 1988 there won’t be increases once in payment but will still be handy to have  should I defer taking it then??

As I understand it, if  a member of a scheme has a GMP snd the payment of a GMP is deferred  beyond seven weeks  from  60th birthday (women) / 65th birthday (men), their accrued GMP must be increased by at least 1/7% for each complete  week thereafter.

However, I am not sure how this applies to a preserved pre 88 GMP only pension like yours - you'd have to check with TW -  perverse incentive to keep deferring?

With regard to the calculation,  the Fixed Rate for 1987 leavers is 8.5%.

You might wish to confirm  with TW  that this is the rate that has been and will continue to be the revaluation rate used - put your question in writing?

Fixed rate revaluation

Schemes that were COSR schemes before Defined Benefit contracting-out abolition, can revalue a leaver’s GMP rights by a fixed rate as an alternative to section 148 revaluation.

The GMP amount calculated at the date of leaving is revalued by a compound fixed percentage for each relevant tax year after the member has ceased to be an active member of the scheme, up to and including the tax year before GMP payable age, or death if earlier.

For you from the tax year 1988/89  to tax year before you reach age 60 (2026/7)?

so £119.08 revalued at 8.5% compound for 37/38 years? Somewhere between £2436 and £2643?

ginnygold

Gosh, this is all so complicated isn’t it?!
Thank you for all the information, it’s very helpful to me. I do know the rate is 8.5%, as I have this in writing. I will contact TW and hope they can clarify other details. Great to have some help with this, thanks again!

DT2001

WTW, I believe, will not confirm the figure as legislation, theoretically, might change how the figure is calculated. They play it safe. If you do the calculations, send them the figures and ask “if legislations remains the same is this calculation correct”. They might then confirm your understanding (this is the way I checked what would happen to my pension at GMP age after asking, what I assumed were reasonable requests for help calculating).