Back-indexed pension at "retirement age"?
Discussion
Most schemes use fixed rate revaluation so the GMP is a known amount. Some link it to national average earnings but that's quite rare.
Mercer are terrible. Most DB administrators are slow and under resourced but Mercer are about the worst along with Capita. However, even within each one it varies scheme by scheme as to who is actually allocated to look after it and their experience.
Mercer are terrible. Most DB administrators are slow and under resourced but Mercer are about the worst along with Capita. However, even within each one it varies scheme by scheme as to who is actually allocated to look after it and their experience.
PistonHead007 said:
Most schemes use fixed rate revaluation so the GMP is a known amount. Some link it to national average earnings but that's quite rare.
Mercer are terrible. Most DB administrators are slow and under resourced but Mercer are about the worst along with Capita. However, even within each one it varies scheme by scheme as to who is actually allocated to look after it and their experience.
Why do you think Mercer "are terrible"...."about the worst" ?Mercer are terrible. Most DB administrators are slow and under resourced but Mercer are about the worst along with Capita. However, even within each one it varies scheme by scheme as to who is actually allocated to look after it and their experience.
R.
Thanks for all the replies. Re-reading the paperwork from Mercer 12 years ago, after reading the replies on here, I finally understand (I think) what the score is:
I will effectively have 4 pensions (or, amounts that are treated differently) once I reach state retirement age in 12 months.
A pre-1988 GMP income of £5140 which will never increase
A post-1988 GMP income of £3348, which will increase by up to 3% with CPI
A further DB pension, currently £3216, which will increase by up to 5% with CPI
The maximum Basic State Pension, currently projected to be £9660, which will increase by whatever the government see fit.
Oh, and there's another DC pension, currently valued at around £10k, that will probably get left alone until I need to cash it in.
That's a total gross income of £21364, 75% of which is protected to an extent against inflation.
Not too shabby, especially if I continue with a bit of self-employment.
The reason why I'm trying to find out my exact position is because I'm considering releasing some equity from my house. That's a real minefield!
I will effectively have 4 pensions (or, amounts that are treated differently) once I reach state retirement age in 12 months.
A pre-1988 GMP income of £5140 which will never increase
A post-1988 GMP income of £3348, which will increase by up to 3% with CPI
A further DB pension, currently £3216, which will increase by up to 5% with CPI
The maximum Basic State Pension, currently projected to be £9660, which will increase by whatever the government see fit.
Oh, and there's another DC pension, currently valued at around £10k, that will probably get left alone until I need to cash it in.
That's a total gross income of £21364, 75% of which is protected to an extent against inflation.
Not too shabby, especially if I continue with a bit of self-employment.
The reason why I'm trying to find out my exact position is because I'm considering releasing some equity from my house. That's a real minefield!
The Leaper said:
PistonHead007 said:
Most schemes use fixed rate revaluation so the GMP is a known amount. Some link it to national average earnings but that's quite rare.
Mercer are terrible. Most DB administrators are slow and under resourced but Mercer are about the worst along with Capita. However, even within each one it varies scheme by scheme as to who is actually allocated to look after it and their experience.
Why do you think Mercer "are terrible"...."about the worst" ?Mercer are terrible. Most DB administrators are slow and under resourced but Mercer are about the worst along with Capita. However, even within each one it varies scheme by scheme as to who is actually allocated to look after it and their experience.
R.
The problem with Mercer, first and foremost, is that they pay peanuts. This means that they generally attract poor quality or uncommitted staff. Those who are good tend to leave quite quickly and those who remain generally aren't in any danger of setting the world alight with their ambition and intellect. The business then tries to compensate for this by making as much as possible automated, which in itself isn't a bad idea, but they don't seem to get that right half the time either.
So you end up with an under-resourced business, employing mildly incompetent staff, using sub-standard systems. Which they then charge their clients a small fortune for whilst telling you that they're the best employee benefits firm in the world.
But then you deal with the total and utter clusterf
k that is Capita and you realise that Mercer could be worse. lauda said:
So you end up with an under-resourced business, employing mildly incompetent staff, using sub-standard systems. Which they then charge their clients a small fortune for whilst telling you that they're the best employee benefits firm in the world.
Even in the article I read complaining about Mercers, the advisors, or whatever they were, seemed to think that they and their clients were Mercers customers. The reality is that its the companies whose schemes they're handling that are their customers and so as long as they keep them happy (I presume by being the cheapest way of dealing with pensions admin) then why would they care what advisors and their customers think?
PistonHead007 said:
The Leaper said:
Why do you think Mercer "are terrible"...."about the worst" ?
R.
Like lauda says, work in the industry and you'll know... Trying to get accurate information in a timely manner is often far more difficult than it should be. R.
Clockworks, yes that's it.
R.
The likes of Willis Towers Watson, Aon etc aren't perfect but they respond to queries more swiftly and accurately. Simple as that.
As for members not being customers that's nonsense. The administrators are fundamentally there to serve the members. Advisers are middle men but only working for the interests of the members.
The sponsoring employer and the DB scheme are linked but separate entities. Whilst the employer pays into the scheme, the scheme assets may at least partly fund the administration cost.
As for members not being customers that's nonsense. The administrators are fundamentally there to serve the members. Advisers are middle men but only working for the interests of the members.
The sponsoring employer and the DB scheme are linked but separate entities. Whilst the employer pays into the scheme, the scheme assets may at least partly fund the administration cost.
clockworks said:
Had a phone call from Mercer just before 5pm.
Pension will be 8629 from 1st June, but I won't actually get the increased payment until 1st July because they have already processed the June payments.
And there we see the incompetence of Mercer in action. It’s not like they didn’t know this was coming, they were too useless to actually schedule the update to your pension before the payroll cutoff. Pension will be 8629 from 1st June, but I won't actually get the increased payment until 1st July because they have already processed the June payments.
lauda said:
clockworks said:
Had a phone call from Mercer just before 5pm.
Pension will be 8629 from 1st June, but I won't actually get the increased payment until 1st July because they have already processed the June payments.
And there we see the incompetence of Mercer in action. It’s not like they didn’t know this was coming, they were too useless to actually schedule the update to your pension before the payroll cutoff. Pension will be 8629 from 1st June, but I won't actually get the increased payment until 1st July because they have already processed the June payments.
R.
The Leaper said:
Mercer will be paying 1 month's arrears, of course. This arises because like all the major administrators, they have a cut off date about 2 weeks ahead of the date of the pensioner payroll run.
R.
I know that but they’ve also known for the last 12 years that this change to the OP’s pension was coming and they’ve still managed to be late in applying it. R.
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