Pension Illustration Error?

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There seem to be various DB Sections

 The purpose of this guide is to provide members of a BAE Systems’ UK Defined Benefit (‘DB’) pension scheme (‘the Schemes’) with an explanation of the options available to them at retirement. The BAE Systems’ UK DB pension schemes are listed below. 

• BAE Systems Pension Scheme – ‘BAESPS’ - Levels 125, 167, 187 and 200 Benefits; Level 100+ Benefits; Aircrew Benefits (pre 2003 joiners); Passport Benefits; 2000 Plan Benefits; Alvis Benefits; Shipbuilding Industries Pension Scheme (SIPS) Benefits 

• BAE Systems Executive Pension Scheme – ‘EPS’ 

• Royal Ordnance Pension Scheme – ‘ROPS’ 

 Scheme Administration 

Mercer Limited (‘Mercer’) became the pension administrator for members with BAESPS SIPS Benefits in June 2023 (replacing Capita) and all other DB members from August 2023 (replacing Equiniti). Please refer to the list of schemes above. 

Indication of benefits – How do I obtain a quote? 

If you are an active or deferred member (i.e. you have left the Company or opted-out of active Scheme membership and have benefits which are not in payment) and would like an indication of what your benefits will be, most members will be able to generate these quotes instantly themselves via OneView. Members were provided with details of their user ID and website passcode to enable access to OneView shortly after the time the DB scheme administration moved to Mercer. 

There will be a few exceptions where OneView cannot provide self-service benefit quotes, such as members of the EPS and those with complicated benefit histories. If you are unable to generate a quote via OneView then please contact Mercer and they will be happy to assist you. If you don’t recall receiving OneView registration details or have mislaid these, please also let Mercer know. You can contact Mercer via the website at www.contactpensionsadmin.com/BAES by using the ‘Raise a Request’ facility. You can also telephone, lines are open Monday to Friday, 8am to 8pm+44 (0) 3308 187 282. The postal address if you prefer to write is: BAE Systems Pension Scheme, c/o Mercer Limited, Maclaren House, Talbot Road, Stretford, Manchester, M32 0FP. 

I suppose that with a change of administrator, there may have been scope for glitches with a change over to a new computer system.

You indicate however that you have been obtaining quotes for several years - if these tallied up to just a few weeks ago with the  

One View illustration, it would seem that the root of any error doesn't lie in the changeover.

With several sections within the scheme, it may well be that the NRD varies across the sections and that somehow your details  

were misallocated.

Presumably next week all will be revealed.

Bodovlov

Thanks for all of the feedback from the group. I now, finally, have a reply from Mercer on this issue...

It seems that my pension is comprised of 2 parts; the first is the usual amount accrued whilst employed by BAE, the  second is from another pension that I transferred to BAE back in the 90's. This second (transferred in) part is guaranteed to increase when I hit age 65.

Apparently the Mercer Online Illustrator is using an incorrect multiplier for the second part when calculating retirement before the Normal Retirement Date (NRD).

This explains the huge discrepancy between the formal quote and any figures provided by the Online Illustrator going back years.

Personally; I think this is highly misleading. The Mercer Online Illustrator is not fit for purpose (I can't be the only person who has transferred funds in from another pension) and, in this scenario, it is providing totally inaccurate information - it's not an estimate, it's just plain wrong!

Mercer also does not provide an annual statement to deferred members so people in my situation really are in the dark until we get close to retirement - and then it's too late to make up a shortfall.

Hoenir

Bodovlov said:

Mercer also does not provide an annual statement to deferred members so people in my situation really are in the dark until we get close to retirement - and then it's too late to make up a shortfall.

With potentially many thousands of deferred members. Who do you think should bear the cost of providing such a service? Not as if the figures are materially going to change in real terms. Easy enough to apply a notional inflation uplift using a calculator. 

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Mercer also does not provide an annual statement to deferred members 

This is not uncommon.

https://www.pensionfundsonline.co.uk/articles/how-to-get-ready-for-the-annual-pension-benefit-statement-iorp-ii

Defined benefit schemes, however, find themselves in a different situation, having never been compelled to send deferred members a personalised annual statement.

(I can't be the only person who has transferred funds in from another pension) and, in this scenario, it is providing totally inaccurate information

Because of the complicated benefit history (see link cited in previous post above)?