Tesco DB Pension not performing - transfer?

Marcon

Aretnap said:

The "transfer value" doesn't really have anything to do with what's happening with "your own money"; it's basically the amount that the pension trustees are willing to offer you to make you go away and give up your right to recieve a pension of £X per month. That amount changes from time to time depending on factors like long term interest rates, which affect how much it costs the trustees to guarantee your income, and on just how keen they are to get rid of you at a particular moment.

That's a pretty common misunderstanding. The transfer value basis is set by the trustees after taking advice form the scheme actuary. It isn't for them to increase it to 'get rid' of members, even the most tiresome ones! Enhanced transfer value exercises are employer driven; the trustees stay neutral.

IAMIAM

I have an old Tesco DB scheme. Think I have commented on this in the past. I had a cetv value of 140k then it went to 100k then 70k and now around 40k and my gauranteed annual pension of circa 5.5k at age 65 has largely stayed the same.

I was tempted to tansfer it out 10 years ago aged 30ish, now 40ish and I want to cash everything in at 60, I am glad I have kept it within the Tesco DB. All they have done, as have A LOT of large companies. they have made huge profits over the years and filled deficits in pension pots so the CETV value is now low as they can now fulfil their commitments with OLD DB Schemes. 

Dazed_and_C0nfused

IAMIAM said:

I have an old Tesco DB scheme. Think I have commented on this in the past. I had a cetv value of 140k then it went to 100k then 70k and now around 40k and my gauranteed annual pension of circa 5.5k at age 65 has largely stayed the same.

I was tempted to tansfer it out 10 years ago aged 30ish, now 40ish and I want to cash everything in at 60, I am glad I have kept it within the Tesco DB. All they have done, as have A LOT of large companies. they have made huge profits over the years and filled deficits in pension pots so the CETV value is now low as they can now fulfil their commitments with OLD DB Schemes. 

By "largely stayed the same" do you really mean it's increased in line with the inflation protection specified in the scheme rules 🤔

IAMIAM

Dazed_and_C0nfused said:

IAMIAM said:

I have an old Tesco DB scheme. Think I have commented on this in the past. I had a cetv value of 140k then it went to 100k then 70k and now around 40k and my gauranteed annual pension of circa 5.5k at age 65 has largely stayed the same.

I was tempted to tansfer it out 10 years ago aged 30ish, now 40ish and I want to cash everything in at 60, I am glad I have kept it within the Tesco DB. All they have done, as have A LOT of large companies. they have made huge profits over the years and filled deficits in pension pots so the CETV value is now low as they can now fulfil their commitments with OLD DB Schemes. 

By "largely stayed the same" do you really mean it's increased in line with the inflation protection specified in the scheme rules 🤔

No idea....what I have noticed when I request a retirement quote for age 60 every year for the last 10 years, its always 5 point something....don't feel like it has increased much? Does it inflation increase in deferrement or just when it pays out....or both?

Dazed_and_C0nfused

IAMIAM said:

Dazed_and_C0nfused said:

IAMIAM said:

I have an old Tesco DB scheme. Think I have commented on this in the past. I had a cetv value of 140k then it went to 100k then 70k and now around 40k and my gauranteed annual pension of circa 5.5k at age 65 has largely stayed the same.

I was tempted to tansfer it out 10 years ago aged 30ish, now 40ish and I want to cash everything in at 60, I am glad I have kept it within the Tesco DB. All they have done, as have A LOT of large companies. they have made huge profits over the years and filled deficits in pension pots so the CETV value is now low as they can now fulfil their commitments with OLD DB Schemes. 

By "largely stayed the same" do you really mean it's increased in line with the inflation protection specified in the scheme rules 🤔

No idea....what I have noticed when I request a retirement quote for age 60 every year for the last 10 years, its always 5 point something....don't feel like it has increased much? Does it inflation increase in deferrement or just when it pays out....or both?

This is from a trustees report about 6 years ago,

Pension increases

The Scheme increases pensions in payment every year in line with price inflation, up to a maximum of 5% a year.

Price inflation for pensions built up before 1 June 2012 is measured by the Retail Prices Index. Price inflation for pensions built up from 1 June 2012 is measured by the Consumer Prices Index. Increases above this may be awarded at the discretion of the Employer.

The Scheme increases Guaranteed Minimum Pensions in line with statutory requirements.

In April 2018, pensions in payment in excess of the Guaranteed Minimum Pension that were built up before June 2012 were increased by 4.0%. Pensions in payment built up since June 2012 were increased by 3.0%.

dunstonh

I've been looking to transfer my Tesco pension too. It's really annoying not knowing what happening with your own money.

That is a back-to-front statement.  DB pension gives you certainty.  Transferring it out introduces uncertainty.

I haven't worked there for years. Last year it was Worth £19000 to transfer ,this year 17000 to transfer. So is it a different figure again if I wanted 25% tax free ?? Thanks.

You dont get 25% TFC on a DB pension.  You get a calculation that gives a ballpark equivalent, but it has nothing to do with the CETV.

IAMIAM

Dazed_and_C0nfused said:

IAMIAM said:

Dazed_and_C0nfused said:

IAMIAM said:

I have an old Tesco DB scheme. Think I have commented on this in the past. I had a cetv value of 140k then it went to 100k then 70k and now around 40k and my gauranteed annual pension of circa 5.5k at age 65 has largely stayed the same.

I was tempted to tansfer it out 10 years ago aged 30ish, now 40ish and I want to cash everything in at 60, I am glad I have kept it within the Tesco DB. All they have done, as have A LOT of large companies. they have made huge profits over the years and filled deficits in pension pots so the CETV value is now low as they can now fulfil their commitments with OLD DB Schemes. 

By "largely stayed the same" do you really mean it's increased in line with the inflation protection specified in the scheme rules 🤔

No idea....what I have noticed when I request a retirement quote for age 60 every year for the last 10 years, its always 5 point something....don't feel like it has increased much? Does it inflation increase in deferrement or just when it pays out....or both?

This is from a trustees report about 6 years ago,

Pension increases

The Scheme increases pensions in payment every  year in line with price inflation, up to a maximum of 5% a year.

Price inflation for pensions built up before 1 June 2012 is measured by the Retail Prices Index. Price inflation for pensions built up from 1 June 2012 is measured by the Consumer Prices Index. Increases above this may be awarded at the discretion of the Employer.

The Scheme increases Guaranteed Minimum Pensions in line with statutory requirements.

In April 2018, pensions in payment in excess of the Guaranteed Minimum Pension that were built up before June 2012 were increased by 4.0%. Pensions in payment built up since June 2012 were increased by 3.0%.

Exactly. Pensions in payment not defferment

DRS1

IAMIAM said:

Dazed_and_C0nfused said:

IAMIAM said:

Dazed_and_C0nfused said:

IAMIAM said:

I have an old Tesco DB scheme. Think I have commented on this in the past. I had a cetv value of 140k then it went to 100k then 70k and now around 40k and my gauranteed annual pension of circa 5.5k at age 65 has largely stayed the same.

I was tempted to tansfer it out 10 years ago aged 30ish, now 40ish and I want to cash everything in at 60, I am glad I have kept it within the Tesco DB. All they have done, as have A LOT of large companies. they have made huge profits over the years and filled deficits in pension pots so the CETV value is now low as they can now fulfil their commitments with OLD DB Schemes. 

By "largely stayed the same" do you really mean it's increased in line with the inflation protection specified in the scheme rules 🤔

No idea....what I have noticed when I request a retirement quote for age 60 every year for the last 10 years, its always 5 point something....don't feel like it has increased much? Does it inflation increase in deferrement or just when it pays out....or both?

This is from a trustees report about 6 years ago,

Pension increases

The Scheme increases pensions in payment every  year in line with price inflation, up to a maximum of 5% a year.

Price inflation for pensions built up before 1 June 2012 is measured by the Retail Prices Index. Price inflation for pensions built up from 1 June 2012 is measured by the Consumer Prices Index. Increases above this may be awarded at the discretion of the Employer.

The Scheme increases Guaranteed Minimum Pensions in line with statutory requirements.

In April 2018, pensions in payment in excess of the Guaranteed Minimum Pension that were built up before June 2012 were increased by 4.0%. Pensions in payment built up since June 2012 were increased by 3.0%.

Exactly. Pensions in payment not defferment

Deferred pensions also get increased.  See page 4 of this

846636074.pdf

xylophone

I have an old Tesco DB scheme

When you left Tesco, were you given a statement of benefits on leaving the scheme?

What does your scheme booklet have to say about how your benefits revalue in deferment?

Statutory Rules here

https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/

Bostonerimus1

This is a very depressing thread. So many people seem to be confused about some of the most important aspects of their personal finances.