Pension Issue

Treasurehunter_2

https://forums.moneysavingexpert.com/discussion/comment/82153095#Comment_82153095

The pension is due on my retirement date and there is nothing in the scheme rules to prevent the administrators processing this on my retirement date. It will be simple payments of the tax free element and a monthly pension which will follow in line with payroll dates.

Marcon

Is your retirement date the same as this scheme's Normal Retirement Age?

Treasurehunter_2

https://forums.moneysavingexpert.com/discussion/comment/82153090#Comment_82153090

https://forums.moneysavingexpert.com/discussion/comment/82153090#Comment_82153090

Thank you. The monthly pension will be paid via monthly payroll however my issue is the conflicting information I have been given on when the tax free element will be paid. I have given the administrators three months notice of my retirement. They confirmed over a month ago all documentation was in order.

Thankfully it is not Capita but recent Trustpilot reviews are alarming….

Treasurehunter_2

https://forums.moneysavingexpert.com/discussion/comment/82153106#Comment_82153106

No, there was the option to have a preserved retirement age but the administrators have confirmed all paperwork is in order for them to process.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82153110#Comment_82153110

Well in theory the tax free lump sum doesn't need to go through payroll so could be paid anytime (ie on your NRD whatever day of the month that was - well weekday) but you do hear stories about delays because the scheme needs to get the cash and they may need to ask an insurance company for it (instead of just selling some assets). If all the paperwork is in order you'd think that process (if it was needed) would have started already. But when the scheme gets the cash would be something outside the administrators control which may be why they can't pin down a definite date.

Treasurehunter_2

https://forums.moneysavingexpert.com/discussion/comment/82153130#Comment_82153130

Thank you. There is nothing in the scheme rules to prevent payment on the date requested.

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82153137#Comment_82153137

Yes but that doesn't mean they can guarantee to actually achieve it.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82153137#Comment_82153137

No I dare say there isn't but in order to make the payment they need the money (and we don't know where that is or how they go about getting it. In the good old days a DB scheme would have a shed load of investments and probably a cash float so the money would be pretty much available at the drop of a hat. But if they have introduced an insurance company into the mix (with something called a buy in) things can slow down).

Treasurehunter_2

https://forums.moneysavingexpert.com/discussion/comment/82153141#Comment_82153141

Thank you. I had expected to receive a statement in the same way as you would with a mortgage or loan advising when funds would be credited.

NoMore

A DB pension is not a mortgage or a loan, they are probably more complicated financial product with much more oversight and admin required to get them into payment.

In an earlier post you say you've been told you will be paid within 10 days, so what exactly is the problem ? Yes, they may have not achieved your expected timescale, but I doubt they ever actually offered that, you seem to have just assumed they would do it when you expected.