Basic State Deduction and impact on DB scheme

segovia

Dazed_and_C0nfused said:

Our main gripe is she has been in the scheme for 44 years and 6 weeks before she is due to take it we only just discover this deduction.  

You mean she has been in the scheme for 44 years and 6 weeks and has never once thought to look at the scheme rules to see how her pension is calculated?

You should make this a priority as some schemes have a maximum accrual so it's not impossible that 44 years and 6 weeks service might only equate to say 40 years for pension purposes.

See my last post, she left CU after 14 years. She does not have 44 years service

xylophone

See my last post, she left CU after 14 years. She does not have 44 years service

But in your earlier post you said

Our main gripe is she has been in the scheme for 44 years and 6 weeks before she is due to take it we only just discover this deduction.  We have also had about 5 IFA's look at it during the past 5 years when she was considering a transferring out of the scheme. All of their forecasts DIDN'T mention and reduction at state pension age.   

so that it is no wonder that confusion has crept in.

The scheme is the old Commercial Union scheme, now Aviva

  https://microsite.ehr.com/Portals/357/Documents/aviva-scheme-booklet_db_gacu.pdf?ver=2019-09-27-011848-170

Your future, your money, your choices – a guide to your pension scheme

for members of the final salary section of the Aviva Staff Pension Scheme (the Scheme) who were members of the former GA and CU schemes 

Page 16 covers the state pension deduction. There is an example which may be helpful.

The state pension deduction as described above has nothing to do with HMRC.

What did have to do with HMRC was the calculation of the Contracted Out Deduction as applied to those who reached SPA before 6/4/2016.

See https://microsite.ehr.com/Portals/357/Documents/aviva-ex-cu.pdf?ver=2019-09-27-011828-823

The COD would also have been used when your wife's starting amount for new state pension was calculated on 6/4/16.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

https://www.gov.uk/government/publications/new-state-pension-if-youve-been-contracted-out-of-additional-state-pension/the-new-state-pension-transition-and-contracting-out-fact-sheet