Deferred defined benefit pension increase after NPA

doggiebrain01

I have a public sector pension that I have deferred and it’s now 4 years past my NPA for this pension.

since NPA the value has not increased with inflation. 

just curious if this a common feature. I know they will pay (taxable) the yearly amount  when I opt to take it but it does seem strange that there has been no yearly increase in the meantime.

Cobbler_tone

It is possible that it won’t increase until in payment but it should increase each year based on the fact that you’ll be taking it later than the NRA.

doggiebrain01

Thanks but it seems not. There’s not an explicit statement but some that allude to the freezing of the value after NPA if not in service. 


It’s a Teachers Pension NPA 60 and unfortunately the deferred benefit statement is exactly the same amount for the past three years at 61,62,63 years. 

Think I have found details saying it does increase each year when taken but seems increase will be on the deferred value which won’t have changed. It’s looking like it has missed each of last three years annual increase, probably cumulatively with this coming April increase about 25%

this does seem punitive when other pensions actually offer a bonus if defer after NPA like the state pension. 

Marcon

doggiebrain01 said:

Thanks but it seems not. There’s not an explicit statement but some that allude to the freezing of the value after NPA if not in service. 


It’s a Teachers Pension NPA 60 and unfortunately the deferred benefit statement is exactly the same amount for the past three years at 61,62,63 years. 

Think I have found details saying it does increase each year when taken but seems increase will be on the deferred value which won’t have changed. It’s looking like it has missed each of last three years annual increase, probably cumulatively with this coming April increase about 25%

this does seem punitive when other pensions actually offer a bonus if defer after NPA like the state pension. 

You don't say whether you are talking about final salary or CARE benefits, or a mixture of both. I'm not sure what you are looking at, but I wonder if you've spotted this on the TPS website - could it be a simple misunderstanding:

 

doggiebrain01

No not seen that post .. thankyou. I was talking about my final salary pension btw. 

doggiebrain01

Update is the Late Retirement Benefit is appropriate if you have carried on with active service in TPS employment after your NPA. I’m not in service so does not apply to me. 

DRS1

doggiebrain01 said:

Update is the Late Retirement Benefit is appropriate if you have carried on with active service in TPS employment after your NPA. I’m not in service so does not apply to me. 

Is Late Retirement Benefit the same as Late Retirement Enhancement?

xylophone

https://www.teacherspensions.co.uk/members/planning-retirement/types-of-retirement/normal-age-retirement.aspx#:~:text=If you delay making your,will be subject to tax.

Once you reach your Normal Pension Age (NPA) and provided you’re out of service you should claim your benefits. If you continue in pensionable service after you reach your NPA your benefits will be paid from the last day of pensionable service. If you delay making your claim then your benefits will be backdated to your last day of service or when you reached your Normal Pension Age, whichever is the later. Any backdated payments will be paid as a lump sum and will be subject to tax.

Is it the case that in the Final Salary NPA 60 there is no late retirement increase?

You receive an automatic  tax free lump sum  and then the pension you should have received in each year (presumably inflation adjusted) as a taxable lump sum?

https://www.litrg.org.uk/pensions/pension-withdrawals/tax-pension-income#:~:text=If you receive a payment,the process is not automatic.

LHW99

Is it the case that in the Final Salary NPA 60 there is no late retirement increase?

This was my understanding, and the reason I took my (small) FS TP benefits at NPA, even though still working.