How do I calculate the value of a Deferred workplace pension

Diana26

I have 2 deferred Pensions from my employment with Midland Bank/HSBC. I have notification from 2006 and 2021 of the value of them both at my date of leaving, which is the same. How do I find out how much they are now worth as they are both index linked. I am now 62 so would like to have some idea as to how much their current value might be. I cannot find a calculator anywhere. 

QrizB

If you want a very rough guide, rather than an exact figure, try putting the date of leaving and the value into the BoE inflaation calculator:
https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

Albermarle

It is a good idea to get a copy of the scheme rules at some point, so you are sure exactly how it is revalued and what will happen after you take the pensions, as 'Index linking' can be different from one DB pension to another.

JoeCrystal

And don't forget the fact HSBC do the state pension clawback as well I believe?

Marcon

Albermarle said:

It is a good idea to get a copy of the scheme rules at some point, so you are sure exactly how it is revalued and what will happen after you take the pensions, as 'Index linking' can be different from one DB pension to another.

It should say on the benefit statements how revaluation is done - otherwise ask the administrators of the scheme. You could also ask for an early retirement quotation which will enable you to see what you would get if you retired early, and also what you would get if you waited until the scheme's Normal Retirement Age (bearing in mind your pension will continue to increase in deferment if you don't take it now).

xylophone

https://futurefocus.staff.hsbc.co.uk/-/media/project/futurefocus/information-centre/deferred-db/guides/midland-member-guide.pdf

may be of interest. However, it is dated before the introduction of the new state pension .

See https://futurefocus.staff.hsbc.co.uk/-/media/project/futurefocus/information-centre/pensioner/other-information/hsbc-pension-increase-2019.pdf

Have you obtained a new state pension forecast? If not, see

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

 I am now 62 

Should you already have claimed your deferred pension? See Guide.


Deferment is covered on page 21 but details of  what revaluation factors are applied are not given.

Statutory rules here but the Scheme rules will apply.

https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/

Was any part of your employment between 1978 and 1997?

If so, you will have a GMP.

You should note the information in the Guide concerning the state pension deduction.

Below may be of interest

https://committees.parliament.uk/writtenevidence/9758/pdf/

https://www.pensions-expert.com/Law-Regulation/Unite-campaigners-plan-pensions-clawback-protest-at-HSBC-AGM


I'd suggest you contact

HSBC Administration Team, Willis Towers Watson, PO Box 652, Redhill, Surrey, RH1 9AL.

Telephone: 01737 227575
Email: hsbcpension@willistowerswatson.com 

Diana26

Thanks xylophone, I will contact the administrators but will have to wait until after 30/5/22 as they are changing from Willistowerswatson to someone else. I have to admit that I do find it all very difficult to understand, it’s a minefield. I intend to get an appointment with Pension wise to get advice, I haven’t taken it yet so I might ask for figures. I was working for HSBC from 1994 to 2004.

xylophone

I intend to get an appointment with Pension wise to get advice, 

Pension wise cannot advise on a defined benefit pension.

I would suggest that you read through the Scheme Guide referenced in my previous and also the links in my previous.

I was working for HSBC from 1994 to 2004.

For the period 1994 - 1997 you have a Guaranteed Minimum Pension. This is explained in the Guide.

I haven’t taken it yet so I might ask for figures. 

As you are already 62 and Scheme pension age was 60 (which is also GMP age for a female) is there a reason why you have not claimed your deferred pension?

And have you obtained a state pension forecast? Link in previous.

With regard to the State Pension Deduction, note that the Guide states

Please note: for women the pension built up before 17 May 1990 will have the deduction applied at age 60, and the pension built up after 17 May 1990 but before 30 June 2009 will have the deduction applied at your new State Pension age.

xylophone

Thanks xylophone, I will contact the administrators but will have to wait until after 30/5/22 as they are changing from Willistowerswatson to someone else.

They are changing to Equiniti.

Have you seen this?

https://futurefocus.staff.hsbc.co.uk/-/media/project/futurefocus/information-centre/deferred-db/guides/information-guide---changing-your-db-and-hybrid-scheme-administrator.pdf

You need to read it carefully.

You will note that there will be a new on line portal through which you will be able to access pension details.

Diana26

Xylophone, I have downloaded the document and will await my correspondence from Equinti. Thanks for your help

Diana26

Xylophone, the reason I haven’t taken it yet is because I’ve had a lot going on with my parents since I turned 60 and haven’t really thought about it, but I will look into maybe taking it soon. When I can speak to Equinti I will ask them. You say I should read through the scheme guide, in reference to GMP do you have a link. Sorry to ask.