BT Pension Scheme Review: Help please.
Comments
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They say that nothing in the review will affect deferred Scheme B members. What they don't say is that early payment options and Actuarial reduction rates are totally discretionary already.
The last time the Actuarial reduction rates changed a year or so ago if memory serves they surprisingly changed in our favour. So let's hope nothing untoward happens.
What age were you thinking about taking your pension ? If it's 60 then the only thing that can be impacted with the reduction rates would be your post 2009 service.0 -
madeinireland wrote: »
In summary they appear to be looking at the usual things - more contributions from members, increasing the age of retirement, capping salary increases (what are those) so that only a certain amount is pensionable. They are also looking to improve the benefits of the BTRSS and covering both schemes in the review.
If I was betting I would suggest they are likely to close the scheme and move everyone to a slightly improved BTRSS. The only thing that makes me think they maybe won't close the scheme is that everyone would be they deferred and get CPI increases whereas as the moment is based on salary increases that are non existent so surely that would cost them more?
I agree. They've already increased the NRA to 65, switched to CARE and increased contributions in 2009.
My money is on them closing the DB scheme and future benefits will be via the BTRSS maybe on slightly improved terms. Divide and conquer and all that. I hope I'm wrong of course but with the amount of time I have left it shouldn't make a massive difference to me.0 -
They've already increased the NRA to 65, switched to CARE and increased contributions in 2009.
My money is on them closing the DB scheme and future benefits will be via the BTRSS maybe on slightly improved terms. Divide and conquer and all that. I hope I'm wrong of course but with the amount of time I have left it shouldn't make a massive difference to me.
Hmm, you do have a rather ironic signature in this context
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Are they allowing active and deferred members to take early retirement on the current terms or are they not allowing early retirement during the review / consultation period?0
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LOL. Yeah maybe but I still like Mrs T.Hmm, you do have a rather ironic signature in this context
Actually if I have to work a year or so with the DC scheme instead I'll put as much as I can in and use that to help to defer my DB scheme when I retire early. Every cloud and all that.0 -
When I was 52 and just after I took release, I asked for my actuarially reduced figures. Remember, they said that we COULD take pension as early as 50. They refused to even send me a quote because my post 2009 benefit would not be enough to live on!!! Some nonsense about it being a separate pension for GMP purposes. That's in spite of 30 years under my belt in pre 2009 contributions.
The CWU rep just laughed and said something like 'we did warn you not to accept the 2009 changes'
In subsequent years, I did get quotes ok. But it made me wary of unwritten rules and arbitrary discretional changes.
One example that concerns me is that they may decide to impose a 'no early payment' restriction, in which case the 'take them at the same time' rule would mean our locked in nra 60 pension might be locked in and stagnating till 65 in spite of the long intention to have it draw-able at 60.
These ideas would be extreme dirty tricks, and hopefully I'm being absurdly pessimistic, but if the company does look for extreme cost saving, we can't rule out such shenanigans.
Incidentally, there was once a poster here who mentioned actuarial enhancement for taking the BT pension after its NRA. Has anyone any knowledge of that? E.g take pension at 62 where pre-2009 benefits ought to get enhancement and post 2009 benefits being reduced as per current AR schedule. That could make it worth deferring past 600 -
With most of my service pre 2009, I'm inclined to start drawing in 2 years when I'm 60 and just take the AR hit on the post 2009 service. That is unless I can get confirmation that there is actuarial enhancement for taking the NRA60 pension later than its NRA.What age were you thinking about taking your pension ? If it's 60 then the only thing that can be impacted with the reduction rates would be your post 2009 service.
I've heard it rumoured but not confirmed that such enhancement might be applied.0 -
Well the way I understand it is that there is legislation in place protecting existing benefits. The pre 2009 service has a NRA of 60. When they changed it last time only the post 2009 service was changed to age 65.
I didn't see the post about enhancement for deferring past the NRA. That's just plain wrong.0 -
With most of my service pre 2009, I'm inclined to start drawing in 2 years when I'm 60 and just take the AR hit on the post 2009 service. That is unless I can get confirmation that there is actuarial enhancement for taking the NRA60 pension later than its NRA.
I've heard it rumoured but not confirmed that such enhancement might be applied.
Yes definitely. There is no point whatsoever deferring your pension past age 60. You would never live long enough to make up for the pension you have missed out on if you deferred just to avoid the hit on the post 2009 service.
There are no enhancements for your pre 2009 service so make sure you take it when you are 60.0
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