Reduced pension

squirrelpie

It does seem particularly unfortunate to have a scheme where the rules haven't been updated to match the change in state pension age. It will leave the OP, and any others like them, short of income for a year which could come as quite a shock if you weren't previously aware.

winkey_2

Thanks all i should have read the documentation but unfortunately I didn't 

FIREDreamer

winkey_2 said:

Thanks all i should have read the documentation but unfortunately I didn't 

Always RTFM 😂😂😂

One of my DB has a state pension age reduction which I assume is 67 for me as an actual age was not shown on my early retirement schedule, just “from your state pension age”.

The reduction is under 4% of the pension which is minuscule. The offset must have been removed shortly after I joined the scheme.

EDIT: yes, it was removed for all service after 30 June 1998 so only 30% of my service has this deduction.

So my deduction if calculated today would be 3 / 80 x 169.50 x 52 = £ 330.52

kempiejon

I have often said I wish my 50 year old self could borrow from the 70 year old me as at 70 I'll have more capital and income than at 50 and could enjoy it more at 50. I was just messing about but it appear M&S had this baked into a non contribitory pensions. What a wheeze.
I'm going to have a read about bridging pensions.

FIREDreamer

winkey_2 said:

Hi my occupational pension is being reduced a year before I receive my state pension what can I do about this, I was in a non contribution pension scheme with marks and spencer, I will be getting my pension reduced by half is there any way around this, I will get the full state pension 

Are sure it is that large? Were you a very low earner whilst a member of this scheme?

xylophone

Relative is in receipt of a non contributory DB, no clawback and excess over GMP fully RPI linked.

Apparently clawback was originally a feature of the Scheme but was abolished at some point in the eighties.

MeteredOut

I'm currently updating my retirement planner spreadsheet to add in my DB pension, which has a State Pension Reduction.

Am i right in saying that the reduction in pension from State Pension Age is

pensionable service / 80 * basic state pension * 52

ie. It is based on £176.45 for the basic state pension, and not the new full state pension of £230.25?

The paper work I have is not clear on this point. I've asked the scheme administrators but I expect they'll take weeks to respond.

I also see the thread above talks about dates this is applicable from.

My original paperwork stated this deduction would start at State Retirement Date, and contains that date (which at that time is when I will be 65), but the scheme paperwork I received a couple of years back (after I'd misplaced my now-found original paperwork) stated  it would be applicable from State Pension Age. This paperwork is not specific to me, so does not give a date, but I'm expecting the reduction kicks in at the new SPA and not the original 65 years old.  I've asked the administrators for confirmation on that too.

Marcon

MeteredOut said:

I'm currently updating my retirement planner spreadsheet to add in my DB pension, which has a State Pension Reduction.

Am i right in saying that the reduction in pension from State Pension Age is

pensionable service / 80 * basic state pension * 52

ie. It is based on £176.45 for the basic state pension, and not the new full state pension of £230.25?

The paper work I have is not clear on this point. I've asked the scheme administrators but I expect they'll take weeks to respond.

I also see the thread above talks about dates this is applicable from.

My original paperwork stated this deduction would start at State Retirement Date, and contains that date (which at that time is when I will be 65), but the scheme paperwork I received a couple of years back (after I'd misplaced my now-found original paperwork) stated  it would be applicable from State Pension Age. This paperwork is not specific to me, so does not give a date, but I'm expecting the reduction kicks in at the new SPA and not the original 65 years old.  I've asked the administrators for confirmation on that too.

I'd expect there to be a definition in the rules, so probably best to wait for the administrators to confirm the position.

MeteredOut

Marcon said:

MeteredOut said:

I'm currently updating my retirement planner spreadsheet to add in my DB pension, which has a State Pension Reduction.

Am i right in saying that the reduction in pension from State Pension Age is

pensionable service / 80 * basic state pension * 52

ie. It is based on £176.45 for the basic state pension, and not the new full state pension of £230.25?

The paper work I have is not clear on this point. I've asked the scheme administrators but I expect they'll take weeks to respond.

I also see the thread above talks about dates this is applicable from.

My original paperwork stated this deduction would start at State Retirement Date, and contains that date (which at that time is when I will be 65), but the scheme paperwork I received a couple of years back (after I'd misplaced my now-found original paperwork) stated  it would be applicable from State Pension Age. This paperwork is not specific to me, so does not give a date, but I'm expecting the reduction kicks in at the new SPA and not the original 65 years old.  I've asked the administrators for confirmation on that too.

I'd expect there to be a definition in the rules, so probably best to wait for the administrators to confirm the position.

Yes, I guess it could easily be scheme specific. The wording in the Scheme Rules I got in 2023 was:

Changes at State Pension Age (SPA) 

Supplementary pension payable to SPA known as State Scheme Deduction (SSD). Calculated as 1/80 x £3,510 of member’s Pensionable Service (up to a maximum of 40 years), and increased in line with the above from date of retirement to SPA.

The accompanying documents mention the SPD/SSD but no specific details.

The £3510 above is 52 * the weekly basic state pension as it was when i left the employment in 2000, but I think I'm right in saying there was no new state pension then so I cannot assume it would be the basic state pension.

I did notice FireDreamer's example above used the basic state pension amount from the last tax year.

So my deduction if calculated today would be 3 / 80 x 169.50 x 52 = £ 330.52

and the photo explicitly states it is based on the basic state pension. But, again, I guess i can't assume that would be the case with my scheme.