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    • westv
    • By westv 10th Jul 18, 3:33 PM
    • 4,620Posts
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    westv
    PPF Annual Increase
    • #1
    • 10th Jul 18, 3:33 PM
    PPF Annual Increase 10th Jul 18 at 3:33 PM
    Just had my latest estimated pension statement from the PPF for pre April 1997 service (claiming from 2023). The increase is around 67 on last year ( 4,334). Increases are based on CPI.
    Does that sound about right? Seems on the low side to me.
Page 1
    • westv
    • By westv 12th Jul 18, 1:41 PM
    • 4,620 Posts
    • 2,218 Thanks
    westv
    • #2
    • 12th Jul 18, 1:41 PM
    • #2
    • 12th Jul 18, 1:41 PM
    I'm surprised nobody knows.
    • Deneb
    • By Deneb 12th Jul 18, 2:34 PM
    • 326 Posts
    • 254 Thanks
    Deneb
    • #3
    • 12th Jul 18, 2:34 PM
    • #3
    • 12th Jul 18, 2:34 PM
    Well, I confess to knowing nothing about it, but intrigued by your question and after a bit of googling, it appears that for a deferred member (which I assume you are from your question) it is more complex than a simple CPI increase and involves calculation of revaluation periods and revaluation factors:

    http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/PPF_Revaluation_Guidance.pdf

    Though as I say, I know nothing about it other than finding that document!
    • xylophone
    • By xylophone 12th Jul 18, 4:09 PM
    • 26,492 Posts
    • 15,733 Thanks
    xylophone
    • #4
    • 12th Jul 18, 4:09 PM
    • #4
    • 12th Jul 18, 4:09 PM
    Do you have a GMP?

    Is it possible that the revaluation is not being applied to that portion of your pension?

    Have you rung the PPF to enquire?

    http://www.pensionprotectionfund.org.uk/Pages/ContactUs.aspx
    • westv
    • By westv 12th Jul 18, 4:30 PM
    • 4,620 Posts
    • 2,218 Thanks
    westv
    • #5
    • 12th Jul 18, 4:30 PM
    • #5
    • 12th Jul 18, 4:30 PM
    Everything I've read before states that, prior to payment, deferred pensions for service prior to April 97 that were under the PPF increase by CPI or 5% (whichever the lower).
    • HappyHarry
    • By HappyHarry 12th Jul 18, 4:49 PM
    • 759 Posts
    • 1,116 Thanks
    HappyHarry
    • #6
    • 12th Jul 18, 4:49 PM
    • #6
    • 12th Jul 18, 4:49 PM
    Everything I've read before states that, prior to payment, deferred pensions for service prior to April 97 that were under the PPF increase by CPI or 5% (whichever the lower).
    Originally posted by westv
    I would expect that to be the case.

    Do you know what date they look at the CPI, and when the increase is applied?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • xylophone
    • By xylophone 12th Jul 18, 4:50 PM
    • 26,492 Posts
    • 15,733 Thanks
    xylophone
    • #7
    • 12th Jul 18, 4:50 PM
    • #7
    • 12th Jul 18, 4:50 PM
    You have statements from previous years?

    To which month in the year does the CPI relate?
    • westv
    • By westv 12th Jul 18, 8:47 PM
    • 4,620 Posts
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    westv
    • #8
    • 12th Jul 18, 8:47 PM
    • #8
    • 12th Jul 18, 8:47 PM
    The increase is around 1.54% but the CPI hasn't been that low at all this year. I'll ask them.
    • westv
    • By westv 14th Jul 18, 3:13 PM
    • 4,620 Posts
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    westv
    • #9
    • 14th Jul 18, 3:13 PM
    • #9
    • 14th Jul 18, 3:13 PM
    I've been able to dig out the following:

    01/10/14 4,184
    01/10/17 4,334
    06/07/18 4,401
    • HappyHarry
    • By HappyHarry 15th Jul 18, 1:51 AM
    • 759 Posts
    • 1,116 Thanks
    HappyHarry
    The increases seem to be lower than CPI.

    If you speak to them, please could you come back and let us know what they say?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • westv
    • By westv 31st Jul 18, 10:11 AM
    • 4,620 Posts
    • 2,218 Thanks
    westv
    I sent an email but haven't had an answer so far.
    • kidmugsy
    • By kidmugsy 31st Jul 18, 10:48 AM
    • 11,594 Posts
    • 8,119 Thanks
    kidmugsy
    I worry about the future of the PPF sometimes. I wonder whether it might be worth their while offering CETVs, in hopes that some people might depart and take their liabilities away with them. Would that need a change in the law?
    Free the dunston one next time too.
    • downshifted
    • By downshifted 31st Jul 18, 6:49 PM
    • 930 Posts
    • 1,968 Thanks
    downshifted
    I worry about it too, because I!!!8217;m in it. They don!!!8217;t pay increases at all on pre 1997 pensions, and most of mine was earned then. It!!!8217;s more than half my pension and it will mean decreasing value over my next 25 years average life expectancy
    Downshifted

    September GC 251.21/250 October 248.82/250 January 159.53/200
    • HappyHarry
    • By HappyHarry 31st Jul 18, 7:51 PM
    • 759 Posts
    • 1,116 Thanks
    HappyHarry
    I worry about the future of the PPF sometimes. I wonder whether it might be worth their while offering CETVs, in hopes that some people might depart and take their liabilities away with them. Would that need a change in the law?
    Originally posted by kidmugsy
    I believe it would need a change in law, and would be extremely unlikely ever to happen. The PPF is a lifeboat. It would be foolish to let people jump out of the lifeboat and drown, or be persuaded to step out by sharks (i.e. cowboy advisers). The whole premise of the safety of the PPF would be compromised.

    The PPF seems to be in fairly good health at present.

    https://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/PPF_annual_report_key_figures_2018.pdf
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • hyubh
    • By hyubh 31st Jul 18, 10:34 PM
    • 2,256 Posts
    • 1,738 Thanks
    hyubh
    I worry about it too, because I'm in it. They don't pay increases at all on pre 1997 pensions, and most of mine was earned then. It!!!8217;s more than half my pension and it will mean decreasing value over my next 25 years average life expectancy
    Originally posted by downshifted
    Surely the fact that PPF compensation increases mirror the statutory minimum for DB pensions rather than the pension increases of the originating pensions themselves is a reason in favour of its sustainability....
    • westv
    • By westv 1st Aug 18, 7:54 PM
    • 4,620 Posts
    • 2,218 Thanks
    westv
    Surely the fact that PPF compensation increases mirror the statutory minimum for DB pensions rather than the pension increases of the originating pensions themselves is a reason in favour of its sustainability....
    Originally posted by hyubh
    True but it would still be nice if there was some sort of increase for those of us with all pre 97 servic.
    • kidmugsy
    • By kidmugsy 1st Aug 18, 9:52 PM
    • 11,594 Posts
    • 8,119 Thanks
    kidmugsy
    The PPF is a lifeboat. It would be foolish to let people jump out of the lifeboat and drown, or be persuaded to step out by sharks (i.e. cowboy advisers). The whole premise of the safety of the PPF would be compromised.
    Originally posted by HappyHarry
    On that feeble argument transfer out from DB pensions would never be allowed.
    Free the dunston one next time too.
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