Surrender meaning

Mozza001

Friend got thus recently,  hasn't a clue what it means and asked me.
Could someone explain?

Dies it mean taking a lower amount, and in return he MAY get a higher yearly increase in the future? I'm guessing on the off-chance we get a massive inflation year?

p00hsticks

I think we need a bit more context.... 

Marcon

Mozza001 said:

Friend got thus recently,  hasn't a clue what it means and asked me.
Could someone explain?

Dies it mean taking a lower amount, and in return he MAY get a higher yearly increase in the future? I'm guessing on the off-chance we get a massive inflation year?

What's he been asked to surrender - and in exchange for what? Rather than asking a friend who admits they don't have a clue, perhaps contacting whoever sent him the letter would be a better idea, not least to highlight the confusion - others might be in the same boat.

Mozza001

Ahhh sorry, thought I'd attached screen grab

Mozza001

Marcon said:

Mozza001 said:

Friend got thus recently,  hasn't a clue what it means and asked me.
Could someone explain?

Dies it mean taking a lower amount, and in return he MAY get a higher yearly increase in the future? I'm guessing on the off-chance we get a massive inflation year?

What's he been asked to surrender - and in exchange for what? Rather than asking a friend who admits they don't have a clue, perhaps contacting whoever sent him the letter would be a better idea, not least to highlight the confusion - others might be in the same boat.

He's tried, they are notorious for being difficult to get hold of, was on hold for an hour.
,

Albermarle

Mozza001 said:

Ahhh sorry, thought I'd attached screen grab

It says if he accepts a lower pension income to begin with, then the cap on annual increases will be higher. So it might grow bigger eventually.
However what appears to be the normal rule of 'up to 10%' is already generous by most private sector DB standards.

xylophone

Is the Imperial Tobacco Pension Fund?

https://myimperialpension.com/library/itpf-booklet-for-members-joining-before-01042002/


https://myimperialpension.com/retired-members/pension-increases/

For pensioners and dependant's of pensioners who joined the Fund prior to 1 April 2002

Increases to deferred pensions and pensions in payment

 

Your pension (excluding any GMP) will be increased each year on 1st April by the rise in the Retail Price Index over the 12 months to the preceding December subject to a maximum increase of 10% per annum.

 

From age 80, increases to pensions in payment will be subject to a maximum increase of 15% per annum.

If so, it  would appear that the OP's friend (about to reach Normal Scheme Pension Age of 60 ?) is being told that he could 

choose to  take a lower pension  ( calculated on an age related basis) when he retires in return for his pension in payment 

benefiting from annual increases of up to  15%  (RPI) rather than the standard up to 10% for a pensioner under age 80?

The sliding scale is covered on page 19 of the Scheme Booklet in the first link.

It may be that there is a more up to date version of the booklet - the OP's friend should check.

The OP's friend should also check his State Pension Forecast if he is indeed under state pension age.

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

Marcon

Mozza001 said:

Ahhh sorry, thought I'd attached screen grab

He can choose to reduce the starting level of his pension in exchange for receiving bigger increases in future - but that assumes we are going to see inflation of more than 10% a year. Depends what his views are on how bad things are going to get!