GMP revaluation at age 65 for men

Marcon

Jacklob said:

Yes this  is all correct. I have all the paperwork but none of it mentions a “state pension deduction”. How do I find out if this applies or not? May he not get his full new state pension, as shown on his state pension forecast or is any “state pension deduction” taken from his Barclays pension?

Have you asked the scheme....? It would be a lot simpler than ploughing through some of the mega-essay replies, which can only be based on wholly inadequate knowledge of the rules and your husband's particular benefits.

xylophone

The SPD relates to the Barclays Pension NOT to the State Pension.

It is mentioned by Mike Floutier/DT2001/Snowwhite 69/Minette (all members of the Barclays 64 Scheme)

See https://forums.moneysavingexpert.com/discussion/comment/62875440/#Comment_62875440

The Barclays situation, from their "Post 06 DIP Guidance notes 64" says:

"In the scheme a deduction is made to the Barclays pension once a member reaches SPA. The maximum SPD is 50% of the single person's Basic State Pension in force when you leave the Scheme. The maximum will only apply if you have completed more than 40 years of service. The maximum in any individual case is 12.5% of total gross pension entitlement before any reduction for early payment. The amount of the deduction, as shown on your pension quotation, is fixed and does not increase over your retirement.

hyubh

Marcon said:

Jacklob said:

Yes this  is all correct. I have all the paperwork but none of it mentions a “state pension deduction”. How do I find out if this applies or not? May he not get his full new state pension, as shown on his state pension forecast or is any “state pension deduction” taken from his Barclays pension?

Have you asked the scheme....? It would be a lot simpler than ploughing through some of the mega-essay replies, which can only be based on wholly inadequate knowledge of the rules and your husband's particular benefits.

Tough crowd! Obviously you'd want to add in scheme specifics, but I thought GMPEqCommenter's account of the general principles of GMP equalisation was excellent.

xylophone

Unfortunately the link you provided is “beyond my  brain’s capacity” 

 Like your husband, the poster (Mike F) was a deferred member of the B1964 FSS and was seeking information from WTW (which he eventually received  as per the link I posted  and set out below). At the date he posted, he was six months away from his 60th birthday.

Like your husband, he had an SPD (abatement) at State Pension Age.

https://forums.moneysavingexpert.com/discussion/comment/62809417/#Comment_62809417

And yes, Barclays do impose the Abatement which in my case is £672.49 pa.

And see my post above concerning this.


Mr Floutier’s pension at date of leaving membership of the Scheme
Annual Pension
Designated GMP portion………………………………………£1,802.84
Non-GMP portion…………………………………………………£5,476.71
Total deferred pension……………………………………… £7,279.55


Mr Floutier’s estimated pension at Normal Retirement Age (age 60)

Designated GMP portion…………………………………… £1,802.84
Non-GMP potion (including annual pension increases since leaving active membership)………………………………………….......................... £9,496.61
Total pension in payment from age 60 from Scheme
..............................................................£11,299.45


Mr Floutier’s estimated total pension on the day before his 65th birthday (2 February 2019)

This assumes that Mr Floutier’s total pension has been increased
by 2.5% since his Normal Retirement Age (ie 4 years, 8 months – the first pension increase would be pro-rated for 8 months.)
…………………….............................................£12,679.50#


Mr Floutier’s estimated pension at GMP payment date (3 February 2019)

GMP portion (£1,802.84 revalued by 7% for each complete tax year since
Mr Floutier left active membership………………....£8,546.20
Non-GMP portion*……………………………………………… £9,496.61
Estimated total pension in payment from age 65 from the Scheme
................................................................£18,042.81


*Increases to Mr Floutier’s pension since Normal Retirement Date are offset against his GMP revaluation; therefore, Mr Floutier’s non-GMP portion reverts to the value at age 60. This is also known as a’ step up’ and for this purpose the amount of ‘step up’ is this example is £5,363.31.

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You will note that estimates are provided as he had not yet reached GMP age.

Presumably you could insert your husband's figures in the above except that you do actually know the exact figure for his

pension at age 60 and the exact figure for his pension on the day before his 65th birthday.

Has he received a calculation from WTW?

Jacklob

Thankyou for all your comments we will contact WTW for more information. We keep getting locked out of his online account, I think due to inactivity so need to sort this out.

I still don,t understand why his Barclays pension increases at GMP date but his Lloyds doesn’t. We haven’t received anything regarding Lloyds since his April annual increase but he was 65 in June. We have emailed them twice with no reply.

xylophone

but his Lloyds doesn’t

It is possible that Lloyds uses a different method.

I know somebody who took the occupational pension pre GMP age.

Up to the PI before GMP age, the whole of the starting pension (which included GMP revalued to that point) increased under Scheme 

Rules (unrestricted RPI).

GMP age was reached in January and the next PI was in July.

At that point, the GMP revalued to GMP age (all pre 88) was split out from the pension and only the excess over GMP increased 

under Scheme Rules.

It may be that in your husband's case, next PI (April?), his revalued GMP will be split out from his total pension and only the 

excess over GMP increased under Scheme Rules?

It may be that the revalued BP will be deducted at that point  as he will be only a few weeks short of his SP.

However, you will need to request (again!) a full explanation from the Administrator of the Scheme to be sure of the facts.