DB pensions projections - how accurate are they?

DT2001

No is the simple answer.
I took my pension early so it was subject to an actuarial reduction.
I understand, now from following this forum, the subject of GMP is complex and sympathise with the administrators when asked to give figures. GMP equalisation has changed the amount paid and the new SP altered the increases to pre 88 accruals.

My experience was that the interpretation of the rules re GMP changed within the 6 months from my last estimate to drawing. Then with the help of some forumites I understood what would happen at 65 with a GMP  step up and partial franking. Since then equalisation has occurred and I have received £3k as a one off payment.

I have looked at the DB payments as a bonus and estimate a rough figure going forward however it does not vary as much as my pension/investment pots  and the presumed SWR.

Silvertabby

Dazed_and_C0nfused said:

Like this,

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

Yes, but this only applies to public sector pensions, which are CPI uncapped.

Private sector DB's set their own rules, with many being capped at 3% or 5%.

Then we come to the increases to GMP in respect of those who reached SPA post 2016....

 

Pat38493

Dazed_and_C0nfused said:

Like this,

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

For public service pensions I guess - but I was more thinking of this:

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

Pat38493

Silvertabby said:

Dazed_and_C0nfused said:

Like this,

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

Yes, but this only applies to public sector pensions, which are CPI uncapped.

Private sector DB's set their own rules, with many being capped at 3% or 5%.

Then we come to the increases to GMP in respect of those who reached SPA post 2016....

 

Are you sure about that - on a different thread on this forum I was told that private sector pensions are still obliged to follow the "Occupational Pension Revaluation Order" that I linked above ^^

This was actually in the context of a discussion about the timing of retirement - due to the way this order has to be applied by the pension administrators, it's often favourable to retire on a date in the calendar year later than the calendar date when your pension was originally deferred.

I'm only going by what I was told in threads on this forum so if I'm wrong I'm happy to be corrected there.

To be totally clear, I guess this order must be used if the pension rules state that the pension will be increased by RPI or CPI up to the normal date of retirement.  If the scheme has other rules I guess it could be different there.

Edit:  This can be further complicated by various other factors - e.g. if your pension had the GMP equalised, or there may be certain portions of your pension that have different normal retirement dates based on various legal rulings over the years - for example, my DB pension scheme has a portion of the deferred amount with retirement date 60 but the rest is 65 - I still don't know exactly why that is, but they sent me a breakdown of the number.  

Silvertabby

Pat38493 said:

Silvertabby said:

Dazed_and_C0nfused said:

Like this,

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

Yes, but this only applies to public sector pensions, which are CPI uncapped.

Private sector DB's set their own rules, with many being capped at 3% or 5%.

Then we come to the increases to GMP in respect of those who reached SPA post 2016....

 

Are you sure about that - on a different thread on this forum I was told that private sector pensions are still obliged to follow the "Occupational Pension Revaluation Order" that I linked above ^^

This was actually in the context of a discussion about the timing of retirement - due to the way this order has to be applied by the pension administrators, it's often favourable to retire on a date in the calendar year later than the calendar date when your pension was originally deferred.

I'm only going by what I was told in threads on this forum so if I'm wrong I'm happy to be corrected there.

To be totally clear, I guess this order must be used if the pension rules state that the pension will be increased by RPI or CPI up to the normal date of retirement.  If the scheme has other rules I guess it could be different there.

Edit:  This can be further complicated by various other factors - e.g. if your pension had the GMP equalised, or there may be certain portions of your pension that have different normal retirement dates based on various legal rulings over the years - for example, my DB pension scheme has a portion of the deferred amount with retirement date 60 but the rest is 65 - I still don't know exactly why that is, but they sent me a breakdown of the number.  

I was referring to Dazed's link to public sector increase tables, so, yes, I'm sure.  Your link isn't the same thing.