How to understand my 1997 DC Trf into my Employers DB scheme

[Deleted User]

Hi everyone

(As I've bored you all before....im currently trying to plot my retirement glidepath to ascertain if I can retire early at 57/58/59/60.)

Re my DC Transfer into my DB pension....I feel really stupid that I've never understood this before and I would re really grateful if anyone could help:'

BACKGROUND

So back in the 90s I commenced employment  Rover Group  and was immediately enrolled into the DB pension.  By paying high tier contributions (c4.3%) I earnt 1/60 of my final salary for each year of service. Retirement age of scheme is 65.

My IFA advised me to take the opportunity of being able to transfer in a previous DC Pension and so I did:
23 OCT 1996:  IJ DC Pension transfer value = £3,524

I received a statement from Rover Group Pensions Dept in Jan 1997 that the £3,524 Lump sum I was transferring in had secured following benefits:

A.)  Pension at Transfer
GMP  £72.80
Non GMP £993.32
Total   £ 1,066.22

B.)  Est Pension at Normal Retirement Age (65) ....for me that's reached in 2033
Revalued GMP £1,091.28
Non GMP £5,479.17
Total £6,570.45

QUESTION

Does an annual pension addition of £1763 (in 2010) seem very generous for a Trf-In sum of only £3,524?  Or is that the very reason why the option to Trf In into DC schemes were stopped in 1990s?

Should I ask Land Rover Pension Admin (Mercer) to confirm/explain the calcs?

Albermarle

Does an annual pension addition of £697 (in 2010) seem very generous for a Trf-In of only £3,524? 

It depends on the terms of the pension( CPI linked etc) but in nay case yes it was a generous offer/good move on your part.

Should I ask Land Rover Pension Admin (Mercer) to confirm/explain the calcs?

You can ask Mercer, but do not expect any quick answers, or any answers at all........

mark55man

Yes there have been a number of different threads where the common theme is Mercer's poor responses.

But more importantly - although not an expert I would say your younger you made a very good choice for your future