Broadstone

[Simpo Two]

Just had a letter from BBS Consultants and Actuaries Ltd saying they have taken over my (very small) pension from Bayer GPP. This is a final salary pension left over from 1988 which is planning to pay me the heady sum of £285pa when I'm old enough. From that I deduce the fund is about £5,700 though I don't think I can get my paws on it.

My question, having never heard of them before, is - is that OK, or are they bandits? The letter says my pension will be looked after in exactly the same way and the Bristol-based team will remain in place to calculate and pay my pension benefits etc etc.

[Simpo Two]

Bump - is it anything to worry about, and even if there is, can I do anything about it?

[CharlesElliott]

Pensions are heavily regulated and such a transfer would have been reviewed and approved by the trustees. Nothing to worry about in my view.

[Zigster]

BBS are a firm of pensions actuaries - small but perfectly legit. Based in Bristol off the top of my head.

They will just have taken on the day to day administration of the pension plan rather than taken on the liabilities. Pensions administrators are a mixed bag - some good ones but too many admin firms underinvested for years and provide a poor service. BBS are relatively new (started maybe 15-20 years ago) so I would guess they will do a decent job as they won’t have too many legacy systems and processes. Either way, they won’t have actually taken on the assets and liabilities of the plan, more that they will be responsible for paying benefits on behalf of the plan trustees (including sending you benefit statements, etc).

Describing your old pension as a GPP is a bit confusing as you also seem to state that it’s a defined benefit plan.

[Simpo Two]

Thanks folks, I didn't realise the investors and the administrators were two different companies.

Zigster said:

Describing your old pension as a GPP is a bit confusing as you also seem to state that it’s a defined benefit plan.

Ah I see; coming from advertising I thought that 'Bayer GPP' was a company name like 'BBS Consultants'... I didn't know I had this pension as I took the money in 1988 when the option arose - a windfall of £400 I seem to remember! it wasn't until Capita contacted me many years later that I discovered there was a residue.

Can I do anything with it or do I just sit back and await my £285pa?

[Zigster]

Might be possible to take a small pension as a lump sum rather than getting a few pounds pm for life. It’s known as “trivial commutation” - see here:
https://www.pensionsadvisoryservice.org.uk/about-p...

[Simpo Two]

Thanks Zigster, very useful. I'll ask them, as I don't recall seeing any paperwork - it was just 'a company pension' paid from pay packet deductions... in the days when life was simpler!

[Simpo Two]

By way of a closure, I got a letter (a real letter, remember those?!) from Broadstone. Relevant bits:

'You may be able to take your pension as a trivial lump sum. However this cannot be estimated at this stage and will need to be calculated when you reach 60.'

'You can transfer your benefits to another pension scheme. Please let me know if you would like a transfer value quotation'.

I have a SIPP which is currently in drawdown. That may preclude me from adding to it. If not, is there likely to be any plus or minus in consolidating them?