TVC Help - State Pension Adjustment

Colin1980

Hi All,

Looking for some help if possible.

Our client has a deferred pension at date of leaving of £15,326.

Broken Down as follows:

Pre 88 GMP - £87.36 Fixed Revaluation & 0% escalation
Post 88 GMP - £849.68 Fixed Revaluation and Escalation - CPI capped 3%
Pre 1997 Non GMP - £5972.12 - Revaluation - CPI capped 5% - Escalation - RPI capped 5%
97-05 - £4725 - CPI capped 5% - Escalation - RPI capped 5%
05 to 09 - £2362.89 - CPI capped 5% - Escalation - RPI capped 5%
09 to 11 - £1329.11 - CPI capped 2.5% - Escalation - RPI capped 5%

There is a State Pension Adjustment which is included within the pension and kicks in when accessing benefits and will the income reduce at State Pension Age (67). I was only alerted to this when I ran illustrations on the Mercer Oneview site, as the scheme information said N/A to Bridging Pension!

I am using O&M profiler. There is an option to select a Segment called State Pension Reduction, however, it is asking for revaluation and escalation?

I am bit unsure how to correctly complete the analysis on this basis?

Thanks

Colin

benjaminfabi

Hi Colin

By far the easiest way is to call O&M support desk, as they know the software inside out 👍

Colin1980

Hi Benjamin, I am probably more mean where would the State Pension Adjustment would fit in? If £15326 was the deferred pension at date of leaving - do you think I would need to find out what the State Pension Adjustment as at date of leaving as well as what revaluation and escaltion is applicable to it?

Northface

agree with the posters, O&M have a factsheet on this from memory, the scheme should give a value at dols of say £500 pa as an example, the scheme should tell you if this is a fixed figure at dols or one that revalues, normally at non gmp rates. in my experience it will be revaluing. it is added as a new slice at 67 (or spa) as a deduction. so on the actual income graph the tvas report shows the income spiking then reducing due to the state pension deduction.

Andy_Schleider

I missed this on here the other day - we got it all sorted yesterday