Preserved benefits

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rheinie

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166
What would be the estimated value of a 16000 euro pension in 2014 if a person were to retire now in 2005 under a defered pension scheme.
 
It would depend on the underlying assumptions, however, if we were to assume 6% growth per annum for 9 years with additional contributions it would amount to €27,031 in 2014.
 
There will be no additional contributions ,this is a redundancy situation ,its a company DB scheme
 
Is this a deferred pension of €16,000 per annum or the transfer value of your pension rights built up in the scheme?

If it is the former, then there is a statutory revaluation of up to 4% max CPI, per annum until NRD on the pension. The acutal increase will depend on the rate declared each year.
 
Thanks for reply 16000 is the amount of pension receivable now in2005 per annum but as this is a deferred pension it will not be available until 2014,also just a short question what happens to AVC contributions in event of death before NPD .thanks
 
Hi rheinie,

Are you sure that this is a DB Defined Benefit scheme? Have a look at the key posts at the top of the forum if you are unsure.

ajapale
 
In the event of death before NPD the usual payment is the actuarial value of the pension payable,subject to a maximum of 4 times final remuneration at your leaving date. Depending on the scheme rules, the value of the AVCs and your oridinary employee contriobutions may be payable in addition, with or without interest. In any case AVCs can be returned.


Also the deferred pension may be provided in the form of a spouses pension, instead of a lump sum, which can be enchanced by the AVCs.
 
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