Old DB Scheme - sanity check required

stevedresden

I was a member of a Company DB scheme for nearly 20 years, before they closed it. The last statement I had (last year) says the estimated total annual pension at age 65 will be £15k

But then it also says that in addition I transferred in 2 other old pensions from previous employees and the statement describes them as a "paid-up pension of £5k" and a "paid up pension of £16k"

Does this mean at 65 I would be looking at an annual  pension of £15k + £5k +£16k = £36k pa?

xylophone

 in addition I transferred in 2 other old pensions from previous employees

Hope you didn't!

the statement describes them as a "paid-up pension of £5k" and a "paid up pension of £16k"

You have never seen these amounts on any previous statements?

Could this indicate the CETVs of the pensions transferred in?

Presumably when you transferred in your pensions, you were told what benefits you would be buying in the new scheme?

When the transfer in was agreed with the new scheme, did you receive a letter giving these details?

Otherwise, contact the Administrator and ask.

stevedresden

Thanks - I did transfer them in. Or at least in some fashion. Sadly memory and documentation is scant

1 was an old Equitable Life pension that had gone bust and I don't think I had any choice to move it to my current employers DB scheme. The other was the Money Purchase scheme that I'd been in at the same employer, as you couldn't join the DB scheme until you were 30, so again - there wasn't a choice as I recall, it just happened automatically when I turned 30

I've seen these 2 numbers referenced in all my statements, but as retirement wasn't really on my agenda I didn't really think about what they meant - hence my question here.

I seem to remember them saying that the pensions transferred in would give me a guaranteed pension of £x - in addition to the main DB pension - so that's why I'm asking if that seems "normal", or if I'm best to just contact the Administrator and ask

Only problem there is that, because the scheme is !!!!!! - you have to wait months for anyone to answer you!

Marcon

stevedresden said:

Thanks - I did transfer them in. Or at least in some fashion. Sadly memory and documentation is scant

1 was an old Equitable Life pension that had gone bust and I don't think I had any choice to move it to my current employers DB scheme. The other was the Money Purchase scheme that I'd been in at the same employer, as you couldn't join the DB scheme until you were 30, so again - there wasn't a choice as I recall, it just happened automatically when I turned 30

I've seen these 2 numbers referenced in all my statements, but as retirement wasn't really on my agenda I didn't really think about what they meant - hence my question here.

I seem to remember them saying that the pensions transferred in would give me a guaranteed pension of £x - in addition to the main DB pension - so that's why I'm asking if that seems "normal", or if I'm best to just contact the Administrator and ask

Only problem there is that, because the scheme is !!!!!! - you have to wait months for anyone to answer you!

But you've waited years to ask the question...

stevedresden

Marcon said:

stevedresden said:

Thanks - I did transfer them in. Or at least in some fashion. Sadly memory and documentation is scant

1 was an old Equitable Life pension that had gone bust and I don't think I had any choice to move it to my current employers DB scheme. The other was the Money Purchase scheme that I'd been in at the same employer, as you couldn't join the DB scheme until you were 30, so again - there wasn't a choice as I recall, it just happened automatically when I turned 30

I've seen these 2 numbers referenced in all my statements, but as retirement wasn't really on my agenda I didn't really think about what they meant - hence my question here.

I seem to remember them saying that the pensions transferred in would give me a guaranteed pension of £x - in addition to the main DB pension - so that's why I'm asking if that seems "normal", or if I'm best to just contact the Administrator and ask

Only problem there is that, because the scheme is !!!!!! - you have to wait months for anyone to answer you!

But you've waited years to ask the question...

Yes, as I said. I was young, and only now starting to contemplate my pension options
Who spend the ages of 20-40 thinking about their pension? Apart from really boring people obvs

artyboy

stevedresden said:

Marcon said:

stevedresden said:

Thanks - I did transfer them in. Or at least in some fashion. Sadly memory and documentation is scant

1 was an old Equitable Life pension that had gone bust and I don't think I had any choice to move it to my current employers DB scheme. The other was the Money Purchase scheme that I'd been in at the same employer, as you couldn't join the DB scheme until you were 30, so again - there wasn't a choice as I recall, it just happened automatically when I turned 30

I've seen these 2 numbers referenced in all my statements, but as retirement wasn't really on my agenda I didn't really think about what they meant - hence my question here.

I seem to remember them saying that the pensions transferred in would give me a guaranteed pension of £x - in addition to the main DB pension - so that's why I'm asking if that seems "normal", or if I'm best to just contact the Administrator and ask

Only problem there is that, because the scheme is !!!!!! - you have to wait months for anyone to answer you!

But you've waited years to ask the question...

Yes, as I said. I was young, and only now starting to contemplate my pension options
Who spend the ages of 20-40 thinking about their pension? Apart from really boring people obvs

You really know how to make friends on this board 

theoretica

So 20 years in the one pension gave you £15k a year.  Does it seem about right given your work history that your other pensions should be one about equal to this and the other about 1/3? 

JoeCrystal

stevedresden said:

Yes, as I said. I was young, and only now starting to contemplate my pension options
Who spend the ages of 20-40 thinking about their pension? Apart from really boring people obvs

Nowadays, everyone mostly gets auto-rolled into their work pension, which generally means they must consider their pensions! Unfortunately, most people don't appreciate how insufficient their contribution rate is.

Marcon

stevedresden said:

Marcon said:

stevedresden said:

Thanks - I did transfer them in. Or at least in some fashion. Sadly memory and documentation is scant

1 was an old Equitable Life pension that had gone bust and I don't think I had any choice to move it to my current employers DB scheme. The other was the Money Purchase scheme that I'd been in at the same employer, as you couldn't join the DB scheme until you were 30, so again - there wasn't a choice as I recall, it just happened automatically when I turned 30

I've seen these 2 numbers referenced in all my statements, but as retirement wasn't really on my agenda I didn't really think about what they meant - hence my question here.

I seem to remember them saying that the pensions transferred in would give me a guaranteed pension of £x - in addition to the main DB pension - so that's why I'm asking if that seems "normal", or if I'm best to just contact the Administrator and ask

Only problem there is that, because the scheme is !!!!!! - you have to wait months for anyone to answer you!

But you've waited years to ask the question...

Yes, as I said. I was young, and only now starting to contemplate my pension options
Who spend the ages of 20-40 thinking about their pension? Apart from really boring people obvs

I don't think that many people, whatever their age, would go to the trouble of transferring a pension without having an idea of what the impact would be if they did so.

xylophone

I don't think that many people, whatever their age, would go to the trouble of transferring a pension without having an idea of what the impact would be if they did so.

The OP clarified

1 was an old Equitable Life pension that had gone bust and I don't think I had any choice to move it to my current employers DB scheme.

 The other was the Money Purchase scheme that I'd been in at the same employer, as you couldn't join the DB scheme until you were 30, so again - there wasn't a choice as I recall, it just happened automatically when I turned 30

It is just odd that there appears to be no information regarding what benefits these transfers purchased in the DB scheme.

I suppose it is possible that these "paid up" pensions might act as a sort of AVC such that benefits in the DB pension can be 

purchased at scheme NRA.

My relative was a member of a  non contributory DB scheme with Equitable Life AVCs offered on the side as it were.

When EL hit problems, the scheme Trustees arranged a transfer deal with Standard Life such that at age 60 (Scheme NRA or 

retirement if earlier) the member could use the SL AVCs to take PCLS/buy benefits in the main DB scheme.

The OP is going to have to bite on the bullet and engage with the Administrator to get the answers.

stevedresden

The OP is going to have to bite on the bullet and engage with the Administrator to get the answers.

Thanks yes, I'll request further information from them. As I stated up front I just wanted a sanity check really to see if those that know a lot about pensions thought the wording on my statements about the additional "paid-up pensions" was something standard that could be easily explained

theoretica said:

So 20 years in the one pension gave you £15k a year.  Does it seem about right given your work history that your other pensions should be one about equal to this and the other about 1/3? 

Not entirely. I had 18 years in the DB scheme (with no AVCs but the maximum % contribution I was allowed) and they closed it in 2016. So although no further contributions have been made, it is still supposed to be being increased by 5% per year (or RPI if lower) so I guess by the time I retire it will be a bit more

The additional pensions - the £"5k" one is the Money Purchase scheme I was in for 3 years between 1998 and 2001, so that does seem quite high in comparison

The "16k" one is the old Equitable Life one which I'd paid into for 7 years from 1991 to 1998

I have kept all the paperwork, so I'll also dig it out and see what it says. Might post again if there is anything I don't understand