Pension transaction negative adjustment

pensionproblems

Can anyone explain what an adjustment transaction on my pension fund is, i noticed that my fund had dropped around 25% last week and when i looked at the pension scheme there was a transaction listed as an adjustment and my fund dropped around 25%. I have been in the process of getting a final settlement for my pension and had completed the paperwork two weeks prior to this adjustment so was not expecting such a drop, i understand that pensions have dropped some due the middle east problems but not 25%.

Aylesbury_Duck

https://forums.moneysavingexpert.com/discussion/6660938/pension-transaction-negative-adjustment

Without knowing any details of the fund, people can only guess. I'll have a guess: That it's a with-profits fund and they've applied a market value reduction to reflect the current (modest) volatility in the markets.

pensionproblems

the fund is Aegon Black Rock DC life path flexi 2025-2027, i understand market fluctuations but usually that is reflected in the value of the fund displayed without any transaction associated with the reduction. i am trying to understand the reasons for it, especially as i have initiated a settlement and this drop in fund value and associated trade happened two weeks after i had signed the settlement paperwork

Aylesbury_Duck

Have you asked them? They'll know a lot more than we do.

Edited to add: There isn't a with-profits element, so my guess was wrong.

pensionproblems

I am unable to communicate with them directly, i can only deal with Aptia who seem to administer the company pension which is invested in Aegon. i have a trade listed in the Aptia website for a number of units with a value equivalent to the drop in fund value, Aptia tell me its market value but that cannot be as the number the of units in the fund have been reduced not the unit value.

dunstonh

Can anyone explain what an adjustment transaction on my pension fund is, 

it can be used for a range of things.

I have been in the process of getting a final settlement for my pension and had completed the paperwork two weeks prior to this adjustment so was not expecting such a drop, i understand that pensions have dropped some due the middle east problems but not 25%.

There is no final settlement you can get in advance for a DC pension (bar some older With Profits funds)

 i understand that pensions have dropped some due the middle east problems but not 25%.

The 25% figure seems to be a possible indicator.

DRS1

When you talk about a final settlement do you mean you are taking the pension - putting it into payment? Would this be the sort of pension which has a 25% tax free lump sum? If so is the adjustment simply the assets being sold to give you the 25% tax free lump sum? Are you expecting to receive that lump sum shortly?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81934311#Comment_81934311

My instinct also. It is just part of the process of paying the tax free lump sum.

pensionproblems

yes i am taking a lump sum from this pension fund, i really do hope that it is part of the process to cash, it would make sense as its a unit transaction trade and not a change in unit value. However Aptia ( who are useless) were unable to confirm that this was the case and said that funds do alter due to market fluctuations. Also i am due an enhanced tax free lump sum, which should be in the region of 40% not 25%.. its all very frustrating that Aptia are unable to give me details and that i cannot talk to the pension administrators directly.

Aylesbury_Duck

Aptia aren't great in my experience. I have a small DB pension with them and they've reduced functionality on the website and if I want anything like a statement or projection I have to write to them to request it.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81934387#Comment_81934387

It sounds to me as if someone has processed this as if you were on a standard lump sum. I am afraid you may need to speak to Aptia again to explain that you have the enhanced lump sum and want to be sure that is what they will be paying you. Presumably there is something about it in the paperwork which you can point them to if they query it.