Old DB Scheme - sanity check required

stevedresden

It says nothing about the fixed pension increasing, but there are calculations about how the main deferred pension will increase in deferment and payment. 2.5% or RPI whichever is lower

As for my state pension, yes checked that and it says I need to pay NI for 2 more years to get the full state pension. Not sure how many years you have to pay? When I click the link to see my NI record it says "full year" for 36 years

xylophone

As for my state pension, yes checked that and it says I need to pay NI for 2 more years to get the full state pension. Not sure how many years you have to pay? When I click the link to see my NI record it says "full year" for 36 years

You are in the transition group because you started your working life in the old scheme but will reach SPA in the new.

It appears that you had at least 18 years in a Defined Benefit Scheme - if so it is virtually certain that you were "contracted out" of

Additional State Pension (SERPS/S2P). Contracting out finally ended 5/4/16.


Your "Starting Amount" for NSP was calculated at 6/4/16 as the higher  of 

Old Scheme 

NI Qualifying ("Full") Years (max 30) x Full Basic State Pension (£119.30) + (Additional State Pension - Deduction for Contracting Out)

New Scheme

[NI Qualifying ("Full") Years (max 35) x Full NSP (£155.65)] - Contracted Out Pension Equivalent.


Your starting amount was under a full NSP.  Full years since then have improved your starting amount and will do so until you

reach full NSP.

Once that point is reached, while if you are working and earning the relevant amount you will continue to pay NI up to SPA, this

will not improve your SP - this will increase each year under the terms of (at the moment) the "triple lock"

What does your forecast show at

Estimate based on your NI record to 5/4/23 (4)?


With regard to the revaluation in deferment of your main DB pension, this looks like the statutory minimum.

And a cap of 2.5% in payment is not generous but better than nothing!

Do come back and clarify the situation on the "paid up" pensions.

stevedresden

xylophone said:

As for my state pension, yes checked that and it says I need to pay NI for 2 more years to get the full state pension. Not sure how many years you have to pay? When I click the link to see my NI record it says "full year" for 36 years

You are in the transition group because you started your working life in the old scheme but will reach SPA in the new.

It appears that you had at least 18 years in a Defined Benefit Scheme - if so it is virtually certain that you were "contracted out" of

Additional State Pension (SERPS/S2P). Contracting out finally ended 5/4/16.


Your "Starting Amount" for NSP was calculated at 6/4/16 as the higher  of 

Old Scheme 

NI Qualifying ("Full") Years (max 30) x Full Basic State Pension (£119.30) + (Additional State Pension - Deduction for Contracting Out)

New Scheme

[NI Qualifying ("Full") Years (max 35) x Full NSP (£155.65)] - Contracted Out Pension Equivalent.


Your starting amount was under a full NSP.  Full years since then have improved your starting amount and will do so until you

reach full NSP.

Once that point is reached, while if you are working and earning the relevant amount you will continue to pay NI up to SPA, this

will not improve your SP - this will increase each year under the terms of (at the moment) the "triple lock"

What does your forecast show at

Estimate based on your NI record to 5/4/23 (4)?


With regard to the revaluation in deferment of your main DB pension, this looks like the statutory minimum.

And a cap of 2.5% in payment is not generous but better than nothing!

Do come back and clarify the situation on the "paid up" pensions.

Thanks for all that

My current state pension forecast at April 2024 is £210.98 as opposed to the £221.20 maximum if I contribute two more years. So it's not far off now

The cap of 2.5% on my deferred pension is certainly better than my rate of pay rises since it closed at the end of 2017 (which is 0%!), so as you say - better than nothing. 

stevedresden

Finally had a reply from my pensions administrator on this one
Yes the two "paid-up" pensions which were transferred in are in addition to the main pension in this scheme

A) £5,932pa from NRD (transferred in from the Money Purchase scheme I was in for 3 years between 1998 and 2001. This figure has been set since transfer in 2001 and does not change)
+
B ) £16,486pa paid from NRD (transferred in from Equitable Life DB scheme which I'd paid into for 7 years from 1991 to 1998. The figure has been set since 2001 when it was transferred in and doesn't change. 
+
C) £15,170pa paid from NRD (paid into this from 2001 to 2016 when the scheme closed. It increases by 2.5% per year until NRD)

Once in payment,
pension A) will increase by 3% per annum
pension B ) will increase by 5% per annum or RPI if less
pension C) will increase by 2.5% per annum or RPI if less

xylophone

Thanks for coming back to clarify.