Where did that go then?
Discussion
I have a very small residual pension from a couple of years employment in the 1980s. It's managed by Broadstone.
In March they wrote to me stating that it would be worth £284pa, or that I might be able to take it as a trivial lump sum (which I assume would be about 20x £284)
Yesterday they sent me an e-mail saying I can now see the pension online. So I did - and apparently it's now worth just £86pa.
How do we think it managed to lose 70% of its value in under 9 months? I've asked them, but it will be interesting to compare answers.
In March they wrote to me stating that it would be worth £284pa, or that I might be able to take it as a trivial lump sum (which I assume would be about 20x £284)
Yesterday they sent me an e-mail saying I can now see the pension online. So I did - and apparently it's now worth just £86pa.
How do we think it managed to lose 70% of its value in under 9 months? I've asked them, but it will be interesting to compare answers.
Badda said:
I can only think you’ve misunderstood something somewhere as it won’t have fallen that much. Maybe the greater figure was if you continued with contributions now or something?
It hasn't had a contribution since 1988! In fact I didn't even know I had it until about 10 years ago (when it was run by Capita) as I thought I'd cashed it in whilst still an employee. IIRC I got a cheque for about £400.xeny said:
The way you're quoting per annum figures makes me think this presumes taking an annuity. Have annuity rates fallen that much this year?
Maybe, we'll see what they say. I'd prefer to get the lump sum out when I can, as £86 a year or even £284 isn't worth a jot.
devnull said:
Terminator X said:
Edit - impressive posting, over 73k!
An average of ten posts a day for about 18ish years. Jesus.Simpo Two said:
devnull said:
Terminator X said:
Edit - impressive posting, over 73k!
An average of ten posts a day for about 18ish years. Jesus.
BoRED S2upid said:
Poorly invested could easily loose 70% in 9 months.
Sure, but not a company pension scheme. I'll find out. Anyway, on the plus side, even if they did invest it in Birmingham Wine Futures, there's not much difference between three-quarters of f
k all and one-quarter of fk all!trickywoo said:
rfisher said:
Simpo Two said:
I remember when it was just a TVR-themed Yahoo group.
Yep me too.A reply just arrived which I think solves the case:
letter said:
As an occupational defined benefit pension arrangement, benefits under the Plan are determined using your pensionable service and salary at the point you leave the Plan. Please refer to the Statement of Deferred Benefits you should have received when you left the Plan on which provides details of how your benefits are increased between your date of leaving and your Normal Retirement Date. Please also refer to the Plan booklet or the Bayer Group Pension Plan website at www.bayerpensions.co.uk for information.
The pension quoted in March was your pension at the date you left the Plan of £86 increased as shown above to 2021. As mentioned in our letter your pension may be at a level where it can be taken as a lump sum at age 60, however we would be unable to establish this until much closer to your 60th birthday. Please contact us nearer to that date if you would like us to provide a quotation.
So it looks like £86 was actually the value in 1988, and that's grown to £284 now. Does that make sense?The pension quoted in March was your pension at the date you left the Plan of £86 increased as shown above to 2021. As mentioned in our letter your pension may be at a level where it can be taken as a lump sum at age 60, however we would be unable to establish this until much closer to your 60th birthday. Please contact us nearer to that date if you would like us to provide a quotation.
Yes, DB pensions not in payment for leavers get increased each year by a fixed factor depending on when you left.
https://www.pensionsadvisoryservice.org.uk/about-p...
https://www.pensionsadvisoryservice.org.uk/about-p...
Simpo Two said:
So it looks like £86 was actually the value in 1988, and that's grown to £284 now. Does that make sense?
It sounds plausible - maybe slightly higher than expected but that depends on the terms of the scheme. It's never as simple as just using RPI or CPI especially for ones as old as that.When I look at the website for my DB pension, it shows me the annual pension at the time I stopped contributing in 2012. Since then it has increased about 20%.
FYI most DB pensions offer a transfer value of 30-40x your annual pension, so I wouldn't be surprised to see a transfer value of £10k in your case.
LeoSayer said:
FYI most DB pensions offer a transfer value of 30-40x your annual pension, so I wouldn't be surprised to see a transfer value of £10k in your case.
Wow, I was working on 20x... Me rich!Not bad for something I thought I'd moved out of completely in 1988. I only contributed for two years!
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