Final salary pension

muswellblue

xylophone said:

My final salary pension was frozen in 2015.

You mean that the pension was closed to future accrual and all existing members became deferred members?

Was there no written communication to all members at the time?

Were you all given statements of deferred benefits?

Were you a member of the scheme between 1978 and 1997?

Have you obtained a new state pension forecast?

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

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

MallyGirl

muswellblue said:

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

The above is based on what it says on the forecast for you - not on a belief that you need 35 years?

muswellblue

MallyGirl said:

muswellblue said:

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

The above is based on what it says on the forecast for you - not on a belief that you need 35 years?

MallyGirl said:

muswellblue said:

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

The above is based on what it says on the forecast for you - not on a belief that you need 35 years?

The state pension forecast just says I need another 5 years to get the full pension. 

Doglegger

muswellblue said:

xylophone said:

My final salary pension was frozen in 2015.

You mean that the pension was closed to future accrual and all existing members became deferred members?

Was there no written communication to all members at the time?

Were you all given statements of deferred benefits?

Were you a member of the scheme between 1978 and 1997?

Have you obtained a new state pension forecast?

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

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

My FS pension went into payment last month and the same happened to me. They changed the actuarial reduction for early payment factors to the detriment of the pensioner. They did this exactly 1 month before mine started in payment. I've lodged an internal dispute as there was no notification that there would be a reduction in the value they had given me in the pack sent at the end of May. I won't have a leg to stand on as they have it sewn up in the scheme booklet's small print.
Having said that, the reduction value went up by a fraction of a percent.....your's looks devastating!

Albermarle

muswellblue said:

xylophone said:

My final salary pension was frozen in 2015.

You mean that the pension was closed to future accrual and all existing members became deferred members?

Was there no written communication to all members at the time?

Were you all given statements of deferred benefits?

Were you a member of the scheme between 1978 and 1997?

Have you obtained a new state pension forecast?

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

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

Can you clarify how many years taking the pension early you are talking about. As you are 55, are you taking it about 5 years early from a normal retirement date of age 60?
If so 15.8% still seems rather low and 7.3% abnormally low,
Usually it is something around 4% per year taken early.

MallyGirl

muswellblue said:

MallyGirl said:

The above is based on what it says on the forecast for you - not on a belief that you need 35 years?

The state pension forecast just says I need another 5 years to get the full pension. 

That is good. I asked because we get people coming on with the mistaken idea that they need 35 years and this is rarely the case. If yours says that you will get the full amount if you contribute for another 5 years then that is great

muswellblue

Albermarle said:

muswellblue said:

xylophone said:

My final salary pension was frozen in 2015.

You mean that the pension was closed to future accrual and all existing members became deferred members?

Was there no written communication to all members at the time?

Were you all given statements of deferred benefits?

Were you a member of the scheme between 1978 and 1997?

Have you obtained a new state pension forecast?

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

This pension provider has been awful for providing statements and information. 

I have checked my state pension forecasts, I will have completed the amount of years required by the time I’m 55, even though I won’t get it until I’m 67. 

My pension provider has replied today. The reason it was lower was because the scheme providers changed the early reduction from 7.3% last year to 15.8% this year. Hope they don’t do this every year. 

I became a member of this scheme in 1995.

Can you clarify how many years taking the pension early you are talking about. As you are 55, are you taking it about 5 years early from a normal retirement date of age 60?
If so 15.8% still seems rather low and 7.3% abnormally low,
Usually it is something around 4% per year taken early.

No I’m almost 51 and I’ve been getting forecasts for when I’m 55. The last 3 years forecasts have the 25% tax free sun going up by £4000 each time. This year it dropped £4000 because of their change in the early reduction 

xylophone

The last 3 years forecasts have the 25% tax free sun going up by £4000 each time. This year it dropped £4000 because of their change in the early reduction 

Partial eclipse?

Presumably the scheme was contracted out - if so as a member 1995/7 you will have a small GMP as part of your pension.

https://techzone.abrdn.com/public/pensions/Tech-guide-guaranteed-min-pen

Your pension should be revaluing in deferment, at least on the statutory basis - your scheme may be more generous.

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

There is an example of how early retirement factors operate here

https://www.gmpf.org.uk/members/retiring/early-retirement-factors

Is  your normal scheme retirement age 60?

muswellblue

xylophone said:

The last 3 years forecasts have the 25% tax free sun going up by £4000 each time. This year it dropped £4000 because of their change in the early reduction 

Partial eclipse?

Presumably the scheme was contracted out - if so as a member 1995/7 you will have a small GMP as part of your pension.

https://techzone.abrdn.com/public/pensions/Tech-guide-guaranteed-min-pen

Your pension should be revaluing in deferment, at least on the statutory basis - your scheme may be more generous.

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

There is an example of how early retirement factors operate here

https://www.gmpf.org.uk/members/retiring/early-retirement-factors

Is  your normal scheme retirement age 60?

The scheme retirement age is 65. 

Albermarle

Normally  a pension with a retirement age of 65 would reduce by about 40% if you wanted to take it at 55.
So I am a bit confused about these figures of  15.8% and 7.3 %.