Deferred Defined Benefit Pension

itzeazy21

I like the post on retirement 

hyperhypo

As others have commented an annual deferrred private db statement will ofter only cite the amount of annual db provision at NRA calculated at the time one left the scheme.

This same number in cash terms will  appear  on successive  annual statements  they may (or may not) provide, ie it won't necessarily include any RPI or CPI indexation , whatever being appropriate to the particular scheme.

Easy enough to work out using an RPI calculator though, or a request to the Trustees to provide same, to check your own maths.

The really important thing is knowing what scheme documentation was appropriate to the deferred scheme, ie when one started work and when finished, as the same nominal scheme may have undergone various date ordered changes since a member first started working...such as different NRAs, differing inflation indexation (RPI 10 chaning to RPI 5% for example)..an so on...which would be applicable to newer entrants.

Having access to the original docs (or copies) relevant to term of employment  is necessary to check for any errors when NRA is reached and payments commence.

Snowwhale78

Hi All,

Just as a follow up I called my pension provider and they confirmed I can only get an update pension quote (i.e what my defined benefit would be) from the age of 55.  This coincides with the early retirement date if I was to go down that route.

Regarding calculating myself does anyone have any good website links to do this?

Thanks

NedS

Here are the tables for revaluation published by the Government each year:

https://www.legislation.gov.uk/uksi/2021/1308/made

Applying these will give you the minimum revaluation required by legislation. Your scheme rules may allow for higher revaluation (e.g, using RPI instead of CPI, or a higher cap or uncapped indexation), but this will at least give you the minimum amount and is a sensible approximation to work off (any quote will vary depending when in 2011 you left the scheme and the exact date you choose to start taking your pension)
Using the tables, you would note the revaluation for a leaving date in 2011 to 2021 is 25.3%, so that is the factor you would apply to the valuation you were given in 2011 upon leaving the scheme.