Adjustments to Pensions in Payment

[John Ratsey]

HPA would like to obtain an overview of how many people have been effected by changes to pensions in payment. Forum members are invited to indicate whether or not they have been affected using the anonymous poll.

[philjohnson]

As there are only 4 options, I have chosen to differentiate the problem that I had with the Pensions team being unable to calculate my correct HPS2 pension for over 10 months (and paying me an interim pension until the correct figure was assessed and then payable together with a back interest payment) from those members that have been notified that they have been overpaid (has anyone been underpaid?), some for many past years. As a result, I have answered no change in the poll as the two issues above I have taken to be separate. Both may be all part of the same administrative problems - despite seeking a proper explanation from the Pensions team, we don't know what has gone wrong. 

[Peter_Bates]

Bearing in mind the Pensions Ombudsman’s comments regarding Mr Y......"'But I find that these letters were all written on behalf of the Scheme and not by the employer. The letters may have been on company headed paper but the sender is either the Pensions Manager or a member of the Pensions team.’......I suggest queries should NOT be addressed to the PENSIONS TEAM but directly to the employer, Halcrow Group Limited.

[rodhacker]

I am fortunate in that I received a positive correction to past pension payments.  A few pounds per year compounded and paid with interest last December. The error related to incorrect treatment of the GMP portion after age 65.
 

[meelit]

I understand that HPS2 pensions are adjusted for inflation once a year. Which month's CPI is used to adjust it and in which month do the pensions get increased? Is it the same time frame as the State pension which I believe uses the Sept CPI rate, amongst other things, to adjust the State pensions for the following tax year? Grateful for any clarification. Still a way to go to claim my pension but counting the dosh is an enjoyable pastime!

[John Ratsey]

I've only just noticed this question. See the attached information sheet (for the 2020 pension increase as that's what I could lay my hands on).

[meelit]

Thanks John. So it is the Oct CPI (amongst other factors) used to adjust the pension increases beginning Jan of the following year.

[philjohnson]

Meelit, does you question confirm that as a deferred member you haven't received an annual statement since 2017? Can you confirm this? It appears from ourvrecent enquiries that all deferred members have not received statement since then.

[meelit]

Yes Phil, I can confirm that I have not received a pension statement since the 4th of Oct 2016 statement when the transition was made to HPS2. I have however, received an estimate last year (2020) from the pensions team in a letter in response to my enquiries about early retirement.


I have deduced that the base CPI value used in the pension statement on 4/10/16 was 100.6 and then onwards, I have used the CPI values for estimating the increases in subsequent years from

https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7bt/mm23

The early and late retirement factors have also changed over time and the latest ones I received from the pensions team on 17/8/21 are in the attached file. It is a partial list but may be useful to others in a similar position to estimate their pensions.


Given the numerous components, each with a different rate of increase and normal retirement age (NRA) which make up the total pension in HPS2, it is a challenge but a reasonable estimate can be made.

[philjohnson]

Thanks for confirming what seems to be a lack of proactive support from the Trustee and pension team on keeping deferred HPS2 members informed annually on how their prospective pension stacks up. I'm also talking to another deferred member who, whilst actually working for Jacobs, exactly like you hasn't receive any annual updates since late 2016. I suspect they don't have to send out annual updates to deferred so they only respond to requests, which I strongly recommend deferred members regularly make. Nearly all other DB schemes treat their deferred members with a much greater degree of proactive support, either via user friendly interactive websites where your pension data can be checked each year or with frequent communications - or both. As we have found so many times, communications to the membership is not their forte.