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Posted: Mon Mar 13, 2017 11:24 am
by dunstable
From the information given in OP's latest post, it appears that there is no mention of a pre 88 GMP on the Statement of Deferred Benefits from CSC.



This could indicate that the Wright Pension was not contracted out but was a CIMP scheme.



This could indicate that in effect, the transfer value of the Wright pension (the so called AVC), is being used to frank the post 88 GMP on the Lucas/CSC pension?



At age 65, the "AVC" will first be applied to securing the revalued post 88 GMP with the balance being treated as the excess?



This would mean that in payment, the CSC scheme would have to index link the revalued post 88 GMP up to 3% CPI and the balance by scheme rules?



Again, this is a best guess because like hyubh, I am not over familiar with private schemes.



There is some information here https://ompensions.co.uk/media/255935/kb-franking.pdf

about franking.



And have you obtained a new state pension statement?





https://www.gov.uk/check-state-pension

Posted: Mon Mar 13, 2017 8:59 pm
by pilot
I've never seen a situation in which a DC transfer in is used to offset the scheme pension accrued under its own right. I would be surprised if this were legal.



That's not to say I won't be surprised, but...

Posted: Tue Mar 14, 2017 1:04 pm
by dunstable
The OP worked for Wright between 83/4 and 1990 and was a member of the pension scheme.



I can't make out whether the Wright Scheme was contracted in or contracted out, (COSR, COMP, or CIMP) and the OP has no record.





At all events, in 1990, he transferred his Wright pension to Lucas (which appears to have provided a COSR scheme) on the terms described in post 5 above in 1990.



If there was a pre/post 88 GMP in the Wright scheme, then one would have expected the Lucas Scheme to have taken on the responsibility for it?



Lucas TUPED to CSC in 1996 and the OP left the company shortly afterwards.



However, the statement from CSC shows no reference to pre 88 GMP.





Although the OP has been told that his Wright pension is separately accounted for as an "AVC" he is also being told that he cannot take it separately from the main pension since it is providing an underpin for the CSC pension.



Therefore it is "franking" the post 88 GMP in CSC and any part of the "AVC" not used for this will be added to the excess and provide standard CSC benefits?



Presumably Mercer will clarify in response to a direct request from the OP.



The OP's NI record might also throw some light?



http://www.plsa.co.uk/PolicyandResearch/DB/GMP-equalisation.aspx

Posted: Wed Mar 15, 2017 3:14 am
by poopspider2
Thanks for further feedback



Its all going over my head a bit now so i will draft an email to Mercer and report back on here.



To xylophone : Yes i have had a pretty recent state pension forecast and on track for full pension, my retirement date is July 2026 when i will be 66 +7 months.

Posted: Wed Mar 15, 2017 8:35 pm
by fur
They seem to be describing a defined benefit scheme with money purchase underpin.



How did you accumulate the AVCs? Additional voluntary contributions by you above what the scheme required to be a member? Contracting out by yourself? As an automatic part of either scheme? By paying into a completely unrelated personal pension yourself and transferring that in? Some other way?