Defined Benefit Pension...buyout in 2001. Compensation received but query of terms on lump sum.

Davethebox1

Hi...I had a company DB Pension during the 1980's that I transferred to a Buy out when I changed jobs. I then received a letter from the Pension company saying they might have missold and do I want to claim. I did and the Pension company transferred the pension scheme into one that had the same rights as the original company . I had received a letter with the offer with an Appendix of Details and Assumptions .  As I couldn't remember the original DB details ( youth!!!) I just signed it.

I am now at a point of wanting to take the annuity and have received various letter of what I could get, including enhanced tax free lump sum. However this would reduce my annuity.

When I delved back into my paperwork ( my wife made me keep all Pension stuff in a folder) I found the original Offer of Compensation with the Appendix.  Half an down the table of Details/Assumptions is the following:

Additional tax free cash at retirement.         3 x total pension.

This would match the tax free lump sum offered by the pension company BUT I would lose some annuity.

I feel the word ADDITIONAL is important in that it means on top of the annuity not in lieu.

I have retained all pension correspondence since the new pension started and there is nothing about the 3 x total pension anywhere apart from on the original offer of compensation. 

I have asked the pension company for their comments but would appreciate your thoughts on the above.

 Many thanks for reading.

Dazed_and_C0nfused

Davethebox1 said:

Hi...I had a company DB Pension during the 1980's that I transferred to a Buy out when I changed jobs. I then received a letter from the Pension company saying they might have missold and do I want to claim. I did and the Pension company transferred the pension scheme into one that had the same rights as the original company . I had received a letter with the offer with an Appendix of Details and Assumptions .  As I couldn't remember the original DB details ( youth!!!) I just signed it.

I am now at a point of wanting to take the annuity and have received various letter of what I could get, including enhanced tax free lump sum. However this would reduce my annuity.

When I delved back into my paperwork ( my wife made me keep all Pension stuff in a folder) I found the original Offer of Compensation with the Appendix.  Half an down the table of Details/Assumptions is the following:

Additional tax free cash at retirement.         3 x total pension.

This would match the tax free lump sum offered by the pension company BUT I would lose some annuity.

I feel the word ADDITIONAL is important in that it means on top of the annuity not in lieu.

I have retained all pension correspondence since the new pension started and there is nothing about the 3 x total pension anywhere apart from on the original offer of compensation. 

I have asked the pension company for their comments but would appreciate your thoughts on the above.

 Many thanks for reading.

Having 3x the pension as a standard TFLS/PCLS is not unusual with a final salary DB pension.

Are you absolutely certain you have understood what are being told you are entitled to as standard?

Marcon

Davethebox1 said:

Hi...I had a company DB Pension during the 1980's that I transferred to a Buy out when I changed jobs. I then received a letter from the Pension company saying they might have missold and do I want to claim. I did and the Pension company transferred the pension scheme into one that had the same rights as the original company . I had received a letter with the offer with an Appendix of Details and Assumptions .  As I couldn't remember the original DB details ( youth!!!) I just signed it.

I am now at a point of wanting to take the annuity and have received various letter of what I could get, including enhanced tax free lump sum. However this would reduce my annuity.

When I delved back into my paperwork ( my wife made me keep all Pension stuff in a folder) I found the original Offer of Compensation with the Appendix.  Half an down the table of Details/Assumptions is the following:

Additional tax free cash at retirement.         3 x total pension.

This would match the tax free lump sum offered by the pension company BUT I would lose some annuity.

I feel the word ADDITIONAL is important in that it means on top of the annuity not in lieu.

I have retained all pension correspondence since the new pension started and there is nothing about the 3 x total pension anywhere apart from on the original offer of compensation. 

I have asked the pension company for their comments but would appreciate your thoughts on the above.

 Many thanks for reading.

I'm sorry to dash your hopes, but (without seeing the full documentation) it sounds like a bit of sloppy wording rather than something giving you an entitlement to extra loot. You appear to have been put into an arrangement which offers the same benefits as your original scheme i.e. put in the position you would have been in had the mis-selling not occurred. You don't get 'extra' on top of that.

Davethebox1

Thanks for the comments so far. 

I have no other information apart from what is on the Appendix. I know some DB pensions had similar so I would like to think that mine is the same.

In terms of possible sloppy wording I can understand BUT as this is the only document I agreed the new pension against it become a form of legal document (I guess). I would have signed seeing that additional lump sum. If it was a sloppy error then I have been missold .. ..again. Something to challenge ?

Davethebox1

Sorry...me seeing the lump sum as an additional was something I was not expected so it is not part of any budgetting for retirement.

However, having spent about 20 years doing quality documentation where may, shall, must and should have real meanings this find is like dog to a bone.