Classic Pension Deferred Lumps Sum interest rate??

ssealy150

Hi, would appreciate some help from anyone who has access to the scheme rules. So I am 62. Just drawing my pension. My pension has been I think correctly calculated by adding to my original pension the appropriate multiplier for CPi inflation.. The lump sum which was calculated when I was 60, does not accrue the multiplier after 60. I think that’s the case, but does it go up at all by way of any interest. Say if you did not draw it till 70, does it still stay the same figure as it was at 60?? Anything in the rules? I have been given a very small amount of increase, which to me doesn’t tally with anything? It’s not the base rate, clearly not the multiplier. Any help appreciated. 

hugheskevi

Hi, would appreciate some help from anyone who has access to the scheme rules.

Scheme rules are published at this link.

So I am 62. Just drawing my pension. My pension has been I think correctly calculated by adding to my original pension the appropriate multiplier for CPi inflation.. The lump sum which was calculated when I was 60, does not accrue the multiplier after 60. I think that’s the case, but does it go up at all by way of any interest.

Your pension was calculated and due for payment at age 60. As you did not claim it, it sits there waiting until you do. The pension that would have been paid reflects the annual increases that would have applied had the pension been in payment. The lump sum would not have increased, as it is a one-off payment. No interest is due for either pension or lump sum.

Say if you did not draw it till 70, does it still stay the same figure as it was at 60?? Anything in the rules?

The lump sum never escalates. The only interest in the scheme rules relates to repayment of widows pension contribution made to unmarried members when they commence their pension, and to compensation payment for members affected by the McCloud judgment.

ssealy150

Hi, thank you, the lump sum has gone up from the figure I was given when I was 60. Which I assume was interest.  But it’s an odd figure which I can’t reconcile with any kind of rate, not cpi, not base rate. So was wondering what it is based on, thanks