Pension query section 50 adjustment

[Jonny bravo]

I'm trying to help my uncle with his pension after he just retired. He's been working in the same job for 40years and just retired. He's entitled to a db pension.

The issue is the size of pension. He had thought he'd get around 5k a year or option of lump sum plus reduced annual pension (per his annual pension statement last one received Nov 17) but on retirement the companies pension advisor is saying that he only has the option of lump sum plus lower pension. He said that they had notified staff in 2014 that the scheme was in deficit and they had applied to the pensions board for section 50 change of terms. Uncle says he didn't receive it but he might have and not understood what it was. Union are useless and just said to contact the pension regulator.

I suppose I'm just asking is there anything else that can be done or just accept it and move on?

 

[Homer]

It's quite possible that they moved from a pension with a commutation option to a lower pension plus a lump sum as part of a Section 50 order. Your uncle should ask them to send him a copy of the communication that was issued at the time of the Section 50 order. One of the requirements for trustees seeking a Section 50 order is a 30 day consultation period, so there should be paperwork relating to the change. If they are not prepared to provide this information, your uncle should contact the Pensions Authority directly.

Having said this, I'm surprised that he received a statement in Nov 2017 showing a pension or lower pension with lump sum option if a change was implemented in 2014. Something doesn't quite add up. Send me a pm if you want to discuss further.