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My pension lump sum was paid out but not to me
Comments
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redofromstart said:Hi,
its all fairly speculative at the moment. I'd ask them to confirm your entitlement and any benefits in writing.
Is it a defined benefit or a defined contribution scheme? The lump sum sounds to me like an offer to buy out benefits because they wanted to close a defined benefit scheme. Would you (and the person who shared your DOB) have been over 55 at the point the lump sum payout occurred?
I have been involved with TUPE and company takeovers and It isn't uncommon to buy a company with a DB scheme and then go through a process to encourage the DB members to take a lump sum into another pension scheme to lose the unknown liability for the company. It was usually a limited time opportunity and no obligation on the employer to offer it again.
the key thing for me would be to establish the type of pension you had previously, and what it was worth either in terms of total pot or in annual income. The provider should maintain that and ensure that you still got what you should have done based on the original scheme rules. Do you have any original paperwork? Roughly how much is the pot worth - 'trivial' amounts under a certain value etc.0 -
FIREDreamer said:LHW99 said:That would be the normal reason - it's not uncommon for people to have small pensions of a couple of hundred pounds a year if they were in a low paid job and did not stay in it very long.
And in my case £6 per year. I got a small pot lump sum of something like £109 to close it down
This was a tiny private sector DB that had been in payment for over 10 years. He had originally taken the maximum 25% tax free cash option, and the remaining pension - although index linked and with 50% spousal benefits - was just over £20 per month after tax.
The offer was over £8K before (20%) tax.
He filled out the claim form and I sent off for a Rhino greenhouses brochure.
4 -
Silvertabby said:
He filled out the claim form and I sent off for a Rhino greenhouses brochure.
1 -
Flugelhorn said:Silvertabby said:
He filled out the claim form and I sent off for a Rhino greenhouses brochure.
And my old Halls went to a good home, so win-win all round.1 -
Silvertabby said:FIREDreamer said:LHW99 said:That would be the normal reason - it's not uncommon for people to have small pensions of a couple of hundred pounds a year if they were in a low paid job and did not stay in it very long.
And in my case £6 per year. I got a small pot lump sum of something like £109 to close it down
This was a tiny private sector DB that had been in payment for over 10 years. He had originally taken the maximum 25% tax free cash option, and the remaining pension - although index linked and with 50% spousal benefits - was just over £20 per month after tax.
The offer was over £8K before (20%) tax.
He filled out the claim form and I sent off for a Rhino greenhouses brochure.
Unfortunately there was no index linking and the annual amount offered was the same as predicted in 1975 when I left the job. Thankfully I have been able to build up provision since.
1 -
I have a tiny deferred CARE pension currently worth 79p a year plus lump sum of £2.37. Will be interesting to see what they offer at NRD (over 20 years to go yet) in the way of trivial commutation.0
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susssy said:redofromstart said:Hi,
its all fairly speculative at the moment. I'd ask them to confirm your entitlement and any benefits in writing.
Is it a defined benefit or a defined contribution scheme? The lump sum sounds to me like an offer to buy out benefits because they wanted to close a defined benefit scheme. Would you (and the person who shared your DOB) have been over 55 at the point the lump sum payout occurred?
I have been involved with TUPE and company takeovers and It isn't uncommon to buy a company with a DB scheme and then go through a process to encourage the DB members to take a lump sum into another pension scheme to lose the unknown liability for the company. It was usually a limited time opportunity and no obligation on the employer to offer it again.
the key thing for me would be to establish the type of pension you had previously, and what it was worth either in terms of total pot or in annual income. The provider should maintain that and ensure that you still got what you should have done based on the original scheme rules. Do you have any original paperwork? Roughly how much is the pot worth - 'trivial' amounts under a certain value etc.
Be interesting if the person who got your payment in 2016 also received one in their own right.0 -
Eldi_Dos said:susssy said:redofromstart said:Hi,
its all fairly speculative at the moment. I'd ask them to confirm your entitlement and any benefits in writing.
Is it a defined benefit or a defined contribution scheme? The lump sum sounds to me like an offer to buy out benefits because they wanted to close a defined benefit scheme. Would you (and the person who shared your DOB) have been over 55 at the point the lump sum payout occurred?
I have been involved with TUPE and company takeovers and It isn't uncommon to buy a company with a DB scheme and then go through a process to encourage the DB members to take a lump sum into another pension scheme to lose the unknown liability for the company. It was usually a limited time opportunity and no obligation on the employer to offer it again.
the key thing for me would be to establish the type of pension you had previously, and what it was worth either in terms of total pot or in annual income. The provider should maintain that and ensure that you still got what you should have done based on the original scheme rules. Do you have any original paperwork? Roughly how much is the pot worth - 'trivial' amounts under a certain value etc.
Be interesting if the person who got your payment in 2016 also received one in their own right.1 -
artyboy said:Eldi_Dos said:susssy said:redofromstart said:Hi,
its all fairly speculative at the moment. I'd ask them to confirm your entitlement and any benefits in writing.
Is it a defined benefit or a defined contribution scheme? The lump sum sounds to me like an offer to buy out benefits because they wanted to close a defined benefit scheme. Would you (and the person who shared your DOB) have been over 55 at the point the lump sum payout occurred?
I have been involved with TUPE and company takeovers and It isn't uncommon to buy a company with a DB scheme and then go through a process to encourage the DB members to take a lump sum into another pension scheme to lose the unknown liability for the company. It was usually a limited time opportunity and no obligation on the employer to offer it again.
the key thing for me would be to establish the type of pension you had previously, and what it was worth either in terms of total pot or in annual income. The provider should maintain that and ensure that you still got what you should have done based on the original scheme rules. Do you have any original paperwork? Roughly how much is the pot worth - 'trivial' amounts under a certain value etc.
Be interesting if the person who got your payment in 2016 also received one in their own right.1 -
Eldi_Dos said:artyboy said:Eldi_Dos said:susssy said:redofromstart said:Hi,
its all fairly speculative at the moment. I'd ask them to confirm your entitlement and any benefits in writing.
Is it a defined benefit or a defined contribution scheme? The lump sum sounds to me like an offer to buy out benefits because they wanted to close a defined benefit scheme. Would you (and the person who shared your DOB) have been over 55 at the point the lump sum payout occurred?
I have been involved with TUPE and company takeovers and It isn't uncommon to buy a company with a DB scheme and then go through a process to encourage the DB members to take a lump sum into another pension scheme to lose the unknown liability for the company. It was usually a limited time opportunity and no obligation on the employer to offer it again.
the key thing for me would be to establish the type of pension you had previously, and what it was worth either in terms of total pot or in annual income. The provider should maintain that and ensure that you still got what you should have done based on the original scheme rules. Do you have any original paperwork? Roughly how much is the pot worth - 'trivial' amounts under a certain value etc.
Be interesting if the person who got your payment in 2016 also received one in their own right.0
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