Direct Benefit Pension & Financial Advisor Fees.

family4tunes

hyubh said:

family4tunes said:

I'm 66, unemployed on state pension. I am not married or have any living relatives. My health isn't that good, I'm a smoker, and currently I have small holding pension fund invested with Pensionbee.

The reason I write is that I have discovered an old direct benefit pension (final salary) that I had forgotten about. I have contacted the old employer for a transfer value and they have quoted £60k. 

Before spending more time thinking about this, double check you can actually have a CETV. Schemes only have to provide one up until a year before the scheme normal retirement age. Doesn't mean they can't do one later, but it's not uncommon to just do the statutory.

PS - what is the scheme's NRA? Later than 65 is relatively unusual for private sector DB. Is there any late retirement factor if it's already been passed...?

I don't see myself living to the point I actually receive all the fund in pension payments (90 yrs old)

What are the pension increases like...?

Yes they did give a CETV back in Oct 23, this was only valid until Nov 24. The company NRA was 60 yrs. Thanks for you help.

xylophone

The company NRA was 60 yrs.

Have you checked on arrears of pension?

On any late retirement increase?

Do you have a statement of deferred benefits from when you left the scheme?

Did you have a GMP?

QrizB

family4tunes said:

hyubh said:

family4tunes said:

I'm 66, unemployed on state pension. I am not married or have any living relatives. My health isn't that good, I'm a smoker, and currently I have small holding pension fund invested with Pensionbee.

The reason I write is that I have discovered an old direct benefit pension (final salary) that I had forgotten about. I have contacted the old employer for a transfer value and they have quoted £60k. 

Before spending more time thinking about this, double check you can actually have a CETV. Schemes only have to provide one up until a year before the scheme normal retirement age. Doesn't mean they can't do one later, but it's not uncommon to just do the statutory.

PS - what is the scheme's NRA? Later than 65 is relatively unusual for private sector DB. Is there any late retirement factor if it's already been passed...?

I don't see myself living to the point I actually receive all the fund in pension payments (90 yrs old)

What are the pension increases like...?

Yes they did give a CETV back in Oct 23, this was only valid until Nov 24. The company NRA was 60 yrs. Thanks for you help.

You said in your opening post that the pension is worth £200 a month, £2400 a year. Was that as of your NRA, or was that also a quote for Oct 2023? Was there also a lump sum? Was there any option to commute some pension and get a larger lump sum?

How does the pension revalue once in payment? By RPI? By CPI? With a cap?

family4tunes

xylophone said:

Before spending more time thinking about this, double check you can actually have a CETV. Schemes only have to provide one up until a year before the scheme normal retirement age. Doesn't mean they can't do one later, but it's not uncommon to just do the statutory.

From the OP's post, it seems that he has only very recently remembered his deferred Defined Benefit pension so presumably the CETV has been provided and is current?

Yes the CETV was done Oct 23 and valid up to Nov 24. The NRA of the pension was 60 yrs.

family4tunes

Apart from one comment box being open, I don't seem to be able to reply to those members that have commented on my thread. Is there an issue with the site, or am I doing something wrong?

Just to be safe, I'll try and answer everyone with one post. 

Yes I did have a CETV done back in Oct 23, this was valid until end Nov 24. Current fund was £70K. I joined the fund in 1998. My NRA was 60yrs. Yearly pension if taken £1,834 (£152 ish a month). The CETV didn't show any cash alternatives that I can recall. Spose pension was mentioned, but I am divorced and have no living relatives.

family4tunes

hyubh, I think the fund is capped when it reached the NRA, so it doesn't accrue anything that I know of.

family4tunes

hyubh, I didn't see an option to commute anything for a larger pension. I did find other documents dating back to 1918 where a part cash, part pension was mentioned, but in the most recent CETV this was not an option given.

xylophone

If you joined the scheme in 1998 you won't have a GMP.

If Normal Scheme Pension age was 60, presumably you are owed arrears of pension?

Have you asked the administrator whether you would be permitted to commute part of the pension for a  tax free pension commencement lump sum?

How much pension per month would you then receive and how would it increase in payment?

NoMore

family4tunes said:

IApart from one comment box being open, I don't seem to be able to reply to those members that have commented on my thread. Is there an issue with the site, or am I doing something wrong?

Just to be safe, I'll try and answer everyone with one post. 

Yes I did have a CETV done back in Oct 23, this was valid until end Nov 24. Current fund was £70K. I joined the fund in 1998. My NRA was 60yrs. Yearly pension if taken £1,834 (£152 ish a month). The CETV didn't show any cash alternatives that I can recall. Spose pension was mentioned, but I am divorced and have no living relatives.

It’s not like Reddit, each thread is just one long continuous linear conversation. Each new message will just be appended to the end. You can quote individual posters to show you are replying directly to them. 

family4tunes

xylophone 3% I believe they quoted. £1,834 a year or £152 approx a month.