Ex Barclays pension

ginnygold

Hi all, somebody very kindly helped me on here before so looking for some more knowledge:)
My husband worked for Barclays from August 1986 to November 1987, so just over a year. He didn’t think he had any pension rights but has recently been told he has a small gmp pension. Value as of November 1987 was £32.87 per year, from April 2032, when he is 65. Current transfer value is £14,370. I know this is only a very pension, but every little helps! We both have others  so we’re all ok 🙏 Could anyone very kindly work out how much this would be per year if he was to leave it? I know there is an equation but I don’t know how to work it out???? Willis Towers Watson said they can’t tell him until 6 months before his retirement date. Many thanks if anybody could please help????

xylophone

Previous thread here

https://forums.moneysavingexpert.com/discussion/6328992/ex-barclays-gmp-pension/p1

The pension became deferred in November 1987.

He has only GMP.

Barclays use "Fixed Rate" revaluation for GMP, 8.5% per annum in his case.

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

He would have around 44/5 years of revaluation so around £1290 per annum at age 65.

The GMP is all pre 88 so will not increase once in payment.

ginnygold

Thank you, that’s very helpful

Brie

Assuming he was at least 20 in 1987 would mean that he is now 55 and so could take his pension immediately but likely with a reduction.  It may be worth while to get WTW to give a quote for him taking it as of 1st Jan 2023 or his next birthday or similar.  This at least should give you some info.  The alternative would be to ask for his most recent annual benefits statement as he should be getting those and they will also include helpful info.  

One of the things I also suggest he checks is what they have for his normal retirement age.  I'm thinking he may have been in the 1964 scheme and he may well be able to get his full pension at 60 instead of 65.  WTW made mistakes on a couple of my different work pensions so it's always best to check they've got it right.

ginnygold

Thank you for reply:) as far as we know, as it’s all GMP he has to wait until 65? Is it only women that can take it at 60? That was what we understood?

ginnygold

He was in 1964 scheme, yes.

xylophone

The scheme pension age was 60 but your husband has only GMP.

The Scheme is bound to pay the revalued GMP from GMP age.

As far as I understand it, if a male participant is the scheme has left with a deferred pension consisting of GMP and excess, at age 60 his pension will comprise unrevalued GMP and revalued excess.

https://forums.moneysavingexpert.com/discussion/4736856/barclays-final-salary-pension-gmp-excess-revaluation-anti-franking/p17

The whole of this then increases in payment under scheme rules, then at age 65, a fresh calculation is done which sets the Fixed Rate GMP for the period against the increase paid under scheme rules and any necessary "step up" to the pension is given.

If this is the case, then at 60 your husband would only get the tiny unrevalued GMP?

You would have to check this with WTW.

I wonder would a transfer out of the CETV (£14, 370) be a possibility?

It is well under the £30,000 that would require regulated advice from a Pension Transfer Specialist.

It might be worth asking WTW.


https://www.gov.uk/guidance/transfer-your-scheme-members-contracted-out-pension-rights

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

ginnygold

This is this is most helpful, he will call WTW and confirm possible options. Many thanks again

xylophone

This is this is most helpful, he will call WTW and confirm possible options. Many thanks again

Let us know how he gets on as  the information may help other posters. 

Albermarle

ginnygold said:

This is this is most helpful, he will call WTW and confirm possible options. Many thanks again

From other threads, he may find getting responses from WTW quite slow/frustrating.