I worked for Barclays bank for a year or so give or take in 1985/6
I was a member of the following scheme
The Barclays Bank UK Retirement Fund (the UKRF)
The 1964 Pension Scheme
The scheme had a GMP (Guaranteed minimum pension) of 17.68 as of 11 April 1986 and I have been given a total transfer value of 8,916.05
How do I work out if this is fair value? if i try to get the GMP as of todays date on the scheme website it does not calculate it.
I intend to call them about this but what other questions should I ask
Thanks
Paul
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Transfer of benefits
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- Lemon Pip
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- Lemon Half
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Re: Transfer of benefits
PaulBullet wrote:I intend to call them about this but what other questions should I ask
You ask them when is your normal retirement date and what could you take by way of benefits, both in cash form and annual lifetime payment.
Is the GMP figure you quote, per year, per month or per week?
A way of assessing the reasonableness or otherwise of the transfer value could be to recall what you earned at Barclays in that period and what it might be worth today had 10 to 20% of it been set aside in a FTSE tracker conventional or indexed Gilts.
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- Lemon Quarter
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Re: Transfer of benefits
PaulBullet wrote:I worked for Barclays bank for a year or so give or take in 1985/6
I was a member of the following scheme
The Barclays Bank UK Retirement Fund (the UKRF)
The 1964 Pension Scheme
The scheme had a GMP (Guaranteed minimum pension) of 17.68 as of 11 April 1986 and I have been given a total transfer value of 8,916.05
How do I work out if this is fair value? if i try to get the GMP as of todays date on the scheme website it does not calculate it.
I intend to call them about this but what other questions should I ask
Thanks
Paul
Hi Paul
The revaluation rates for GMP prior to 6 April 1988 is a fixed rate of 8.5% p.a. https://assets.publishing.service.gov.u ... nsions.pdf so roughly, this £17.68 pension from 1986 will be re-valued in the region of £240 p.a.. This will increase each year in deferment until drawn (usually age 65). There is no requirement for GMP income to be increased in payment before April 1988 (I think), but State Pension would get amended as compensation for this.
So, you could give up a fixed 8.5% revalued pension, or leave it and transfer out when it's time to draw (if, of course that option is still open!). Currently, it seems that the transfer figure is about 37 times the pension, but I would wait until you hear directly from the Barclays scheme as this is just a rough guesstimate based on the information above. Just ask them to confirm that the revaluation rates are correct, the GMP increase in payment is correct and that you can transfer without the need for IFA authorisation (I expect so as transfer figure is below £30k).
Cheers, OLTB.
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- Lemon Half
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Re: Transfer of benefits
OLTB wrote:The revaluation rates for GMP prior to 6 April 1988 is a fixed rate of 8.5% p.a. https://assets.publishing.service.gov.u ... nsions.pdf
That's only so if the scheme chose to use fixed rate revaluations. They could, as the document you link to points out, have chosen to revalue by National Average Earnings (aka section 148 orders) instead, and there was also a "limited rate revaluation" which also linked to National Average Earnings but was capped at 5%pa over the whole in-deferment period.
While it's most likely that something like the Barclays scheme would use the fixed rate revaluation, the OP should check and ask them.
There is no requirement for GMP income to be increased in payment before April 1988 (I think), but State Pension would get amended as compensation for this.
The first part is so, and that's why you may see "pre-88 GMP" and "post-88 GMP" on a pension statement. The second part is no longer so for anyone reaching state pension age after April 2016. The transition to the new state pension effectively stopped the ASP provided GMP increases.
Currently, it seems that the transfer figure is about 37 times the pension...
That's assuming that the GMP (as calculated) will make up the whole of the pension, which isn't necessarily a good assumption and also needs to be checked.
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Re: Transfer of benefits
thanks for the replies
I have asked the questions and should get an answer in about a week
OLTB - your calculations agree with what I was thinking.
mc2fool - The GMP is the only part of the pension that there is.
Paul
I have asked the questions and should get an answer in about a week
OLTB - your calculations agree with what I was thinking.
mc2fool - The GMP is the only part of the pension that there is.
Paul
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- Lemon Pip
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Re: Transfer of benefits
Got a very useful PDF from the administrator with maybe too much information to digest
however the summary is
I can confirm that your Guaranteed Minimum Pension (GMP) is payable from 65. The value of your GMP at the date of leaving was £17.68 per annum and it receives deferred increases of 8.5% each completed tax year between the date of leaving on 11 April 1986 and 65, in line with the attached guide.
Paul
however the summary is
I can confirm that your Guaranteed Minimum Pension (GMP) is payable from 65. The value of your GMP at the date of leaving was £17.68 per annum and it receives deferred increases of 8.5% each completed tax year between the date of leaving on 11 April 1986 and 65, in line with the attached guide.
Paul
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