Bit baffled by Guaranteed Minimum Pension
Comments
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And in connection with the above, and using my hypothetical figure of 4% CPI , your scheme pension statement would show no increase on pre 88 GMP, 3% on post 88 GMP and 4% on the excess.
I have no recollection of getting a letter along the lines you state. Neither my scheme pension statement nor the DWP state pension statement mentions pre or post 88
is SPA state pension age? reached that before april 20160 -
"Let's suppose that the ASP shown on the DWP in your first SP letter was £100 and your COD was £80, made up of £70 pre 88 and £10 post 88.
Your ASP is therefore £20."
The ASP can't be £100 and £20, do you mean the amount payable is £20?
How did you get to the £10.30 figure?
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I have no recollection of getting a letter along the lines you state. Neither my scheme pension statement nor the DWP state pension statement mentions pre or post 88
The DWP statement refers to pre 97 Additional State Pension.
This amount is the SERPS to which you would have been entitled had you not contracted out of SERPS.
The COD comprises the GMP built up in your scheme 1978 -1988 and 1988-1997.
When exactly were you in the LGPS?0 -
"Let's suppose that the ASP shown on the DWP in your first SP letter was £100 and your COD was £80, made up of £70 pre 88 and £10 post 88.
Your ASP is therefore £20."
The ASP can't be £100 and £20, do you mean the amount payable is £20?
How did you get to the £10.30 figure?
The DWP shows a figure for pre 97 ASP.
From this is deducted the COD.
Your ASP (ie the amount payable to you) is the pre 97 ASP minus the COD.
Thus had the pre 97 ASP been £100 and the COD £80, ( £70 pre 88/£10 post 88) then your ASP (the amount payable to you) would be £20.
I then hypothesised that the CPI for the following year was 4%.
The DWP figure then becomes £104.
The pre 88 figure does not change.
In my example it remains £70.
The post 88 figure (£10) is increased by the scheme up to CPI to a maximum 3% - it therefore becomes £10.30.
The total COD therefore becomes £70 + £10.30 = £80.30.
This is deducted from £104 to give ASP payable with the SP of £23.60.
Have a look at post 45 here
https://forums.moneysavingexpert.com/showthread.php?t=4532605&page=3&highlight=
In this particular case, Howy 22's statement from DWP showed that in the year 2012/13, the pre 97 ASP was £98.83.
His COD for that year was £98.17.
His scheme administrator had provided the GMP split (£60.65 pre 88/ £38.17 post 88).
For that year the ASP payable with his SP would have been £0.66.
In the following year, CPI was 2.2%.
The pre 97 ASP becomes £101.
The pre 88 GMP remains the same.
The post 88 GMP becomes £39.01
The COD becomes £99.66.
The ASP payable becomes £101 minus £99.66.
Howy receives £1.34 pre 97 ASP with his state pension.0 -
Can you say exactly when you were in LGPS?
If it was between 1978 and 1997, have you studied the example of Tim in the link in post 3?0 -
yes I've seen that but I don't know what my pre and post 88 amounts are
But surely your annual statement of pension increase shows this?
Otherwise, ask LGPS to set out your personal situation as it is set out for Tim in the example.
Presumably you can look at your annual state pension statements for 2013 to the present and see what is happening to your COD?0 -
I assure you neither my state nor loc govt pension statements mention 1988 at all
Yes I can see the COD for each year. Having compared the last 2 years I can see that the increase in COD equates more or less to the reduction I perceived in this years increase to my loc gov pension, is that what you are alluding to?0 -
I assure you neither my state nor loc govt pension statements mention 1988 at all
Re State Pension - see post 14. The DWP simply refer to pre 97 ASP.
The pre 97 ASP is the SERPS that would have been payable if the Scheme had not contracted out.
The COD is the sum of pre 88 and post 88 GMP.
With regard to increases on pre 97 GMP, have you understood the information given in my post 15 above about the increase applied to Howy's pension?
You are in Howy's position with regard to your pension increases.
The DWP index links (by previous September CPI) your pre 88 GMP.
Your Scheme index links by previous September CPI (and pays with your scheme pension) your post 88 GMP up to 3% - were CPI higher than this the DWP would index link the difference.
Re LGPS - you say that you worked for LGPS between 1978 and 1994.
Therefore you have pre 88 GMP/post 88 GMP and excess.
Presumably you receive a pension increase letter from LGPS every year.
I have asked my relative (who is in receipt of State pension and DB pension with pre and post 88 GMP) about pension increase letters.
His letter from DB Admin
shows increase (or otherwise)
pre 6 April 88 GMP
post 6 April 88 GMP
Fund pension.
I don't know how LGPS do it.
I am wondering whether Silvertabby who is expert in LGPS can throw some light.
Otherwise, I can only suggest that you ask your LGPS administrator to explain your figures.0 -
There aren't any 'standard' letters in use throughout the LGPS, even for GMP.
The LGPS I worked for certainly didn't split the figures into excess/pre 88 GMP/post 88 GMP in the retirement letters. To be fair, very few people actually queried the pension increase figures if/when they were less than CPI - and the one's who did seemed happy with a quick verbal explanation.
We had more trouble with the NI Modification letters, which explained that the pension had been reduced by a small amount (rarely more than £3 per month) when the State pension included an amount of Graduated Pension - even though the pensioner had paid reduced NI for that period.
As xylophone says, I'm sure OP's LGPS administrators will be happy to confirm his current GMP breakdown.
In the meantime, OP, be glad that you reached SPA before 2016 - the GMP question for those of us who will reach/reached SPA after that date is so much more complicated!0
This discussion has been closed.
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