Levelling pension calculation

Mozza001

xylophone said:

No, long gone

Get one from link above?

Had a look but can't understand it.

It's the DB before 2002.

Hell have to wait for his statement.

Mozza001

Just seen his statement from this year, says " before state pension retirement age £31000, After state pension age 23,500..

This is the only figures on the statement.
Is it a case of the levelling has already been done and is built into the scheme, compulsory?

xylophone

I am assuming that this was the statement received before he asked for an early retirement quotation (ie pre age 60 which was his NRA).

 If so, with regard to the two figures shown, I don't think that this has anything to do with a "levelling option" but 
 rather with the integration (clawback/abatement/state pension reduction)  which according to page 3  of the scheme guide for pre 2002 entrants is applied to the scheme pension at state pension age.

See under

 Integration

Pension reduced by (1.5 x LEL) x  years of service/47 for 47ths accrual

Pension reduced by single state pension x years of service/42 for 42nds accrual.

Your friend should check with the administrator.

See also https://researchbriefings.files.parliament.uk/documents/SN01121/SN01121.pdf


There will certainly be an actuarial reduction for taking the pension pre age 60.

Was he a member of the scheme pre 1997? If so, he should read the information concerning the GMP.

Has he obtained a state pension forecast?

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

Mozza001

Thanks.
Joined 93.
Full state pension.
Don't understand the above, waaaay over my head.

He's got it in his head he will lose 5% per year, so 25% at 55.

Still no clue what it will make him at 55, when he rang git told can't advise untill next statement, next year.

He's got a transfer value and is trying to compare it against drawing early, but so many ifs and buts.

Mozza001

Don't understand how his private pension affects state pension.

xylophone

Don't understand how his private pension affects state pension.

Do you mean the GMP?

Or how his starting amount for New State Pension was calculated?

Or integration?

With regard to the actuarial reduction if he takes his Scheme Pension pre  Normal Scheme Pension Age, the Guide does not provide 

details of how this will be calculated (percentage reduction). It simply  states that the reduction will be applied on terms 

prescribed by the Scheme Actuary.

If you provide your friend with the link to the Guide, after reading through he could put any queries to the Administrator. He 

should note that the information on how the GMP increases in payment after SPA is not wholly accurate as this Guide was 

produced pre introduction of the New State Pension.

He might wish to ask the Administrator if any updated guidance has been produced.

Has he made a formal request for an early retirement quote?

xylophone

Your friend may be interested.

https://www.impac.org.uk/