DB Pension Increase in Payment - Choices?

BennyBrownBoy

xylophone said:

Well yes, but this seems to imply that the information and quotes given to the OP by Mercer were incorrect.

Certainly incomplete.

I agree - incomplete. One would assume that two figures should be routinely provided in forecasts: one for the Capped option and one for the Uncapped option.

I can only assume that the forecasts I have been provided with are for the Capped scenario - which seems to be the default position.

If this was not the case and my forecasts are for the Uncapped scenario, then if choosing the Capped option ultimately, my pension starting figure would be higher than than previously quoted.

The unknown for me is "exactly how much pension would I be expected to give up in order to receive Uncapped future increases and what is the calculation/assumptions that would underpin this?"

Clearly I need to establish this detail with Mercer, but would anyone care to hazard a guess?

For example - if my forecasts are indeed for the Capped scenario and they were, for arguments sake, £10,000 per annum at commencement, what would the likely commencement figure be in an Uncapped scenario?

Pat38493

I would tend more towards at lease misleading rather than just incomplete - if a document is incomplete to the point that it implies something that’s incorrect, to me that’s misleading.

xylophone

The unknown for me is "exactly how much pension would I be expected to give up in order to receive Uncapped future increases and what is the calculation/assumptions that would underpin this?"

See your Scheme Guide.

Details will be provided by the Pensions Officer on request.

It would be pointless for anybody to hazard a guess because this will be scheme specific.