Obligations of pension company

Hoenir

Tommyjw said:

Indeed we have a whole team of coders etc ready to get a DB Scheme up and running online to run pension projections, all we are waiting is for the Trustee's to decide to pay for it, my experience is admittedly overwhelmingly with 'small' Schemes (less than 5000 members) and they are very reultant to pay for it

Majority will be considering buy-outs than expending money on a  service with a limited shelf life. 

MarkCarnage

Hoenir said:

Tommyjw said:

Indeed we have a whole team of coders etc ready to get a DB Scheme up and running online to run pension projections, all we are waiting is for the Trustee's to decide to pay for it, my experience is admittedly overwhelmingly with 'small' Schemes (less than 5000 members) and they are very reultant to pay for it

Majority will be considering buy-outs than expending money on a  service with a limited shelf life. 

Agree. The CETV ship has sailed too. I'm not sure that having a CETV online projections service is actually that good a thing either. Projected benefits - these shouldn't really be needed that frequently either. It's basically accrual or revaluation of deferred pension, neither of which should be that difficult to estimate forward once you have one projection. 

QrizB

My DB closed to new accrual several years ago. I know my accrued benefits at leaving and (at least in principle) can inflate it to date.

However, the platform also lets me get estimates for early or late retirement. Since they don't seem to publish their actuarial reduction tables, this is quite useful. I'd miss it if they took it away.

ChrisBristol88

Thank you to those who answered and confirmed that this is acceptable / normal policy. 

MarkCarnage

QrizB said:

My DB closed to new accrual several years ago. I know my accrued benefits at leaving and (at least in principle) can inflate it to date.

However, the platform also lets me get estimates for early or late retirement. Since they don't seem to publish their actuarial reduction tables, this is quite useful. I'd miss it if they took it away.

I would suggest that if you assume 4-5% p.a. for actuarial reduction that won't be far wrong. Enhancement for late retirement tends to be slightly higher.