New Pension rules for 2006

adminannie

Hi New here so please be patient with me if this has been asked before.

I have a Kingfisher pension as I work for B & Q Plc. I could have had my pension last year but as I chose to carry on working they wouldn't pay me, I was a bit miffed becasue if I had left and joined another company at a later date I could have claimed by pension, seems silly rule to me as I have been with my employer 18yrs and obviously at my age I dont want to be looking for another job.

I have heard that the rules for this might be changing in 2006 I have looked around and phoned Kingfisher but they wont tell me yet what is happening to the pensions. Has anyone any idea what is going to happen, as I feel that as I have paid this I should be able to have it. I can get my governmemt pension but not the one I have paid into in my wages, seems abit silly this rule to me. Any advise please Annie

dunstonh

The trustees will still have final say if you can take your pension before the scheme retirement date.

Once you hit the scheme retirement date, you are entitled to take retirement benefits with no penalty and the trustess wont intervene.

Now, are you currently under the scheme retirement age or over it?

EdInvestor

There is currently a rule that you can't take a company pension and go on working for the same company.AFAIK this rule is being changed next year, as part of the Government's efforts to help people "phase in" retirement so they can claim their pension but keep on working (full or part time) at the same company.

[IIRC this was one of the recommendations made in the Pickering review, so I'm not sure if it is part of the A-day measures or a separate move, perhaps from the DWP.]

adminannie

Hi I was 60 last year so if I had left I would have been able to claim my pension, as Kingfishers retirement age is 60. My statepension is very small and I would have liked to cut my hours (fulltime) and claim my works pension, but at the minute Kingfisher will not pay it to me. My feelings are, years not claimed will never be recovered. Annie

EdInvestor

Annie

Suggest you ask these people if they can clarify

http://www.opas.org.uk

Debt_Free_Chick

Editor wrote:

There is currently a rule that you can't take a company pension and go on working for the same company.AFAIK this rule is being changed next year, as part of the Government's efforts to help people "phase in" retirement so they can claim their pension but keep on working (full or part time) at the same company.

[IIRC this was one of the recommendations made in the Pickering review, so I'm not sure if it is part of the A-day measures or a separate move, perhaps from the DWP.]

Part of simplification, but I think it will still be a trustees' decision. Currently, the Inland Revenue will not allow pensions to be paid whilst employees are in the pension scheme to which the employment relates (except they can always be paid at NRA). Post 2006, the Inland Revenue will allow the pension to be paid, whilst still in the relevant employment .... but this doesn't mean that all schemes will have to give this flexibility.

HTH

Debt_Free_Chick

adminannie wrote:

Hi I was 60 last year so if I had left I would have been able to claim my pension, as Kingfishers retirement age is 60. My statepension is very small and I would have liked to cut my hours (fulltime) and claim my works pension, but at the minute Kingfisher will not pay it to me. My feelings are, years not claimed will never be recovered. Annie

If you first joined the Kingfisher scheme before 1.6.1989 then you should have been able to take your pension when you reached age 60.

If you joined after 1.6.1989 it's the Inland Revenue rules that do not allow Kingfisher to pay your pension until you actually retire.

Have you been in touch with Kingfisher Group Benefits Department?

adminannie

Hi Thanks for all the advice, I joined after 1988 so Kingfisher have told me that I cant have my pension. I have also phoned Kingfisher about the new rules but as yet will not give me an answer to what is happening. I suppose it is going to be a case of "Wait and see" Annie

EdInvestor

Annie


I understand that after 2006 any pension including a company pension can be taken at any time after age 55 and it can be taken in part, not "in full" - part of the pension can be paid e.g. to supplement lower earnings as a result of moving to part-time work.

But, it's still likely to be at the trustees' discretion in an occupational scheme. That said, trustees would need to have a good reason to refuse to pay. Such a reason might be cost. Another reason might be administrative complexity.

Basically, the company will need to see the new regulations first before deciding on policy. So as you say, at present, it's a matter of "wait and see".

adminannie

Thanks for the explanation, I am prepared to cut hours if I get my pension as thats what I wanted to do Annie