Will my work pension be backdated when first paid?

Roy1234

DRS1 said:

Roy1234 said:

I have a deferred Final Salary pension with my current employer. The scheme was closed down over a decade ago, and replaced with a Money Purchase one, as so many schemes were.

I am considering retiring soon and drawing this deferred company pension, but not the subsequent money purchase one for now. The work pension adviser thought that (without checking) schemes generally need about 3 months notice for this. I would be retiring after one month's notice not three, so living on savings initially.

My question is, after the (say) three months when the deferred work pension is paid to me, will it be backdated to the date I first applied to draw it, or not?

You really need to check with the pension scheme.  Many have websites and a page describing how to claim your pension.  That will tell you if you need to give 3 months notice to claim and if there will be any backdating to the date of claim (Doubt it - it will probably say give x months notice IN ADVANCE).  

Bear in mind that as @Marcon said just because you have reached age 55 that won't mean you have a right to claim your pension from that age.  The DB scheme will have had a normal pension age (65?) and if you try to claim before then you will probably need someone's consent (employer and/or trustees).  And then there will be a reduction for early payment.  Worth looking to see if you can find out what that will be.

Also are you sure you can take one pension without taking the other?  If it was two different schemes with two different employers then of course you could but it is the same employer and maybe it is the same scheme.

I will try to find the DB scheme info, but as I say it was closed to new members over a decade ago so docs may be old. All the current work rulebook says is that those retiring must resign and work their contracted notice periods, nothing more.

Mulling over early retirement options in one of a few work pension adviser meetings over many months, we did discuss whether I'd be better taking the DB or DC scheme initally, as savings meant I could leave the other for some years. They weren't tied together.

I realise there are reductions in going early. He got me to request illustrations for immediate retirement for both, for ballpark figures to plan ahead.

Realistically, why might the DB scheme refuse me early retirement? They just pay out less for longer, no more in total.

katejo

Roy1234 said:

DRS1 said:

Roy1234 said:

I have a deferred Final Salary pension with my current employer. The scheme was closed down over a decade ago, and replaced with a Money Purchase one, as so many schemes were.

I am considering retiring soon and drawing this deferred company pension, but not the subsequent money purchase one for now. The work pension adviser thought that (without checking) schemes generally need about 3 months notice for this. I would be retiring after one month's notice not three, so living on savings initially.

My question is, after the (say) three months when the deferred work pension is paid to me, will it be backdated to the date I first applied to draw it, or not?

You really need to check with the pension scheme.  Many have websites and a page describing how to claim your pension.  That will tell you if you need to give 3 months notice to claim and if there will be any backdating to the date of claim (Doubt it - it will probably say give x months notice IN ADVANCE).  

Bear in mind that as @Marcon said just because you have reached age 55 that won't mean you have a right to claim your pension from that age.  The DB scheme will have had a normal pension age (65?) and if you try to claim before then you will probably need someone's consent (employer and/or trustees).  And then there will be a reduction for early payment.  Worth looking to see if you can find out what that will be.

Also are you sure you can take one pension without taking the other?  If it was two different schemes with two different employers then of course you could but it is the same employer and maybe it is the same scheme.

I will try to find the DB scheme info, but as I say it was closed to new members over a decade ago so docs may be old. All the current work rulebook says is that those retiring must resign and work their contracted notice periods, nothing more.

Mulling over early retirement options in one of a few work pension adviser meetings over many months, we did discuss whether I'd be better taking the DB or DC scheme initally, as savings meant I could leave the other for some years. They weren't tied together.

I realise there are reductions in going early. He got me to request illustrations for immediate retirement for both, for ballpark figures to plan ahead.

Realistically, why might the DB scheme refuse me early retirement? They just pay out less for longer, no more in total.

I am still paying into my DB scheme but it switched from final salary to career average in 2016. We were then told that we could claim the final salary part with no reductions as long as we continued to pay into the career average part until 60 (no penalty for taking it before 65). 

Roy1234

katejo said:

Roy1234 said:

DRS1 said:

Roy1234 said:

I have a deferred Final Salary pension with my current employer. The scheme was closed down over a decade ago, and replaced with a Money Purchase one, as so many schemes were.

I am considering retiring soon and drawing this deferred company pension, but not the subsequent money purchase one for now. The work pension adviser thought that (without checking) schemes generally need about 3 months notice for this. I would be retiring after one month's notice not three, so living on savings initially.

My question is, after the (say) three months when the deferred work pension is paid to me, will it be backdated to the date I first applied to draw it, or not?

You really need to check with the pension scheme.  Many have websites and a page describing how to claim your pension.  That will tell you if you need to give 3 months notice to claim and if there will be any backdating to the date of claim (Doubt it - it will probably say give x months notice IN ADVANCE).  

Bear in mind that as @Marcon said just because you have reached age 55 that won't mean you have a right to claim your pension from that age.  The DB scheme will have had a normal pension age (65?) and if you try to claim before then you will probably need someone's consent (employer and/or trustees).  And then there will be a reduction for early payment.  Worth looking to see if you can find out what that will be.

Also are you sure you can take one pension without taking the other?  If it was two different schemes with two different employers then of course you could but it is the same employer and maybe it is the same scheme.

I will try to find the DB scheme info, but as I say it was closed to new members over a decade ago so docs may be old. All the current work rulebook says is that those retiring must resign and work their contracted notice periods, nothing more.

Mulling over early retirement options in one of a few work pension adviser meetings over many months, we did discuss whether I'd be better taking the DB or DC scheme initally, as savings meant I could leave the other for some years. They weren't tied together.

I realise there are reductions in going early. He got me to request illustrations for immediate retirement for both, for ballpark figures to plan ahead.

Realistically, why might the DB scheme refuse me early retirement? They just pay out less for longer, no more in total.

I am still paying into my DB scheme but it switched from final salary to career average in 2016. We were then told that we could claim the final salary part with no reductions as long as we continued to pay into the career average part until 60 (no penalty for taking it before 65). 

I'm not sure if you're in the public sector to have had this compromise, but my DB scheme with a private company closed down, initially to new members and then to existing ones. No new payments allowed. Too unpredictably expensive to run as life expectancies rose and investment returns fell, and no longer valued as much by employees who job hop so often now.

Albermarle

Roy1234 said:

DRS1 said:

Roy1234 said:

I have a deferred Final Salary pension with my current employer. The scheme was closed down over a decade ago, and replaced with a Money Purchase one, as so many schemes were.

I am considering retiring soon and drawing this deferred company pension, but not the subsequent money purchase one for now. The work pension adviser thought that (without checking) schemes generally need about 3 months notice for this. I would be retiring after one month's notice not three, so living on savings initially.

My question is, after the (say) three months when the deferred work pension is paid to me, will it be backdated to the date I first applied to draw it, or not?

You really need to check with the pension scheme.  Many have websites and a page describing how to claim your pension.  That will tell you if you need to give 3 months notice to claim and if there will be any backdating to the date of claim (Doubt it - it will probably say give x months notice IN ADVANCE).  

Bear in mind that as @Marcon said just because you have reached age 55 that won't mean you have a right to claim your pension from that age.  The DB scheme will have had a normal pension age (65?) and if you try to claim before then you will probably need someone's consent (employer and/or trustees).  And then there will be a reduction for early payment.  Worth looking to see if you can find out what that will be.

Also are you sure you can take one pension without taking the other?  If it was two different schemes with two different employers then of course you could but it is the same employer and maybe it is the same scheme.

I will try to find the DB scheme info, but as I say it was closed to new members over a decade ago so docs may be old. All the current work rulebook says is that those retiring must resign and work their contracted notice periods, nothing more.

Mulling over early retirement options in one of a few work pension adviser meetings over many months, we did discuss whether I'd be better taking the DB or DC scheme initally, as savings meant I could leave the other for some years. They weren't tied together.

I realise there are reductions in going early. He got me to request illustrations for immediate retirement for both, for ballpark figures to plan ahead.

Realistically, why might the DB scheme refuse me early retirement? They just pay out less for longer, no more in total.

Orobably they will not refuse, but it is just the way the scheme rules were drawn up some decades ago.

Marcon

Roy1234 said:

DRS1 said:

Roy1234 said:

I have a deferred Final Salary pension with my current employer. The scheme was closed down over a decade ago, and replaced with a Money Purchase one, as so many schemes were.

I am considering retiring soon and drawing this deferred company pension, but not the subsequent money purchase one for now. The work pension adviser thought that (without checking) schemes generally need about 3 months notice for this. I would be retiring after one month's notice not three, so living on savings initially.

My question is, after the (say) three months when the deferred work pension is paid to me, will it be backdated to the date I first applied to draw it, or not?

You really need to check with the pension scheme.  Many have websites and a page describing how to claim your pension.  That will tell you if you need to give 3 months notice to claim and if there will be any backdating to the date of claim (Doubt it - it will probably say give x months notice IN ADVANCE).  

Bear in mind that as @Marcon said just because you have reached age 55 that won't mean you have a right to claim your pension from that age.  The DB scheme will have had a normal pension age (65?) and if you try to claim before then you will probably need someone's consent (employer and/or trustees).  And then there will be a reduction for early payment.  Worth looking to see if you can find out what that will be.

Also are you sure you can take one pension without taking the other?  If it was two different schemes with two different employers then of course you could but it is the same employer and maybe it is the same scheme.

I will try to find the DB scheme info, but as I say it was closed to new members over a decade ago so docs may be old. All the current work rulebook says is that those retiring must resign and work their contracted notice periods, nothing more.

Mulling over early retirement options in one of a few work pension adviser meetings over many months, we did discuss whether I'd be better taking the DB or DC scheme initally, as savings meant I could leave the other for some years. They weren't tied together.

I realise there are reductions in going early. He got me to request illustrations for immediate retirement for both, for ballpark figures to plan ahead.

Realistically, why might the DB scheme refuse me early retirement? They just pay out less for longer, no more in total.

There’s rather a lot of guesswork, opinions and speculation on this thread - doubtless well meant but in truth some are serving to obscure the real issue: finding out what the rules of your particular scheme permit and whether you need employer/trustee consent to take your DB benefits before the scheme's Normal Retirement Date. Rather than looking around for an elderly scheme booklet, ask the DB scheme administrators for:

•  an early retirement quote as at your preferred date for actually starting to draw your DB scheme benefits [the word ‘retirement’ has different meanings for different people – this phrasing is unambiguous]
• details of whether employer and/or trustee consent is required
• whether you have to leave the employer’s service to be able to draw your DB pension
• confirmation of how long, in practice, it would take for your pension/any lump sum to actually be paid once you have returned the forms confirming you would like to proceed to take your DB benefits from the date shown on the quote.

 

DRS1

Roy1234 said:

DRS1 said:

Roy1234 said:

I have a deferred Final Salary pension with my current employer. The scheme was closed down over a decade ago, and replaced with a Money Purchase one, as so many schemes were.

I am considering retiring soon and drawing this deferred company pension, but not the subsequent money purchase one for now. The work pension adviser thought that (without checking) schemes generally need about 3 months notice for this. I would be retiring after one month's notice not three, so living on savings initially.

My question is, after the (say) three months when the deferred work pension is paid to me, will it be backdated to the date I first applied to draw it, or not?

You really need to check with the pension scheme.  Many have websites and a page describing how to claim your pension.  That will tell you if you need to give 3 months notice to claim and if there will be any backdating to the date of claim (Doubt it - it will probably say give x months notice IN ADVANCE).  

Bear in mind that as @Marcon said just because you have reached age 55 that won't mean you have a right to claim your pension from that age.  The DB scheme will have had a normal pension age (65?) and if you try to claim before then you will probably need someone's consent (employer and/or trustees).  And then there will be a reduction for early payment.  Worth looking to see if you can find out what that will be.

Also are you sure you can take one pension without taking the other?  If it was two different schemes with two different employers then of course you could but it is the same employer and maybe it is the same scheme.

I will try to find the DB scheme info, but as I say it was closed to new members over a decade ago so docs may be old. All the current work rulebook says is that those retiring must resign and work their contracted notice periods, nothing more.

Mulling over early retirement options in one of a few work pension adviser meetings over many months, we did discuss whether I'd be better taking the DB or DC scheme initally, as savings meant I could leave the other for some years. They weren't tied together.

I realise there are reductions in going early. He got me to request illustrations for immediate retirement for both, for ballpark figures to plan ahead.

Realistically, why might the DB scheme refuse me early retirement? They just pay out less for longer, no more in total.

As to why would anyone withhold consent to early retirement well the obvious reason would be financial.  The "no more in total" bit ain't necessarily so.

But saying you may need someone's consent isn't saying they will withhold that consent.