Private Pensions?

[Pink Frog]

My hubby used to work for the Ford Motor Company a number of years ago, until he gave up work through ill health. He has arthritis in his spine.

Last November he turned 60 and he was told he had to transfer to Pension Credit. So we put in the application and he became entitled to Pension Credit from the beginning of May this year.

Before the PC went through, he received a letter from Ford Motor Company saying they had received a request from PC about his pension fund. This was something he had never thought about and had forgotten he had paid into it.

Today he received a letter saying he was entitled to a sum of money when he reaches the age of 65 years. The sum in question is £2,000
This was a contributory pension fund. The letter also confirms that this is a Guaranteed Minimum Pension and he is not eligible for early retirement.

Can anyone advise if the £2,000 is per annum and this will be received weekly/monthly. So approx £40 pw.

If this is a £40 weekly payment, will this £40 pw amount be deducted from our PC?

Or is this a one off payment? Can this pension be cashed in now?

Typical that the letter arrives on a weekend and no one to answer our questions.

[andypandy]

I would imagine you would have to speak to FORD Chris as they will give you most of the answers. Why is it these kind of letters arrive on a weekend ? A couple of weekends ago I had an awful letter from my solicitor, yes on a Saturday - I am sure the postman keeps hold of them.

Perhaps someone will be around later to give you more advice that I can.

I hope everything works out okay for you and your hubby, I am sure it will

Andy

[Carneucopia]

Yes any regular pension payment is counted as income when calculating the Guarantee Pension Credit. At the age of (currently) 65 Pension Credit can be calculated differently as a kind of reward for having made private pension provision, and this is called the PC Savings Credit.

But this doesn't help unless your husband knows the terms and conditions of his Ford pension. He should have been given those at the start of his contributions. If they have been lost he does need to contact Ford for info because these 'occupational pensions' don't all follow hard and fast rules.

[Pink Frog]

Thanks for the replies, will give Ford Pension Department a ring tomorrow.

[Pink Frog]

Rang Ford Pensions this morning and the £2,000 private pension is an annual award and split into monthly payments.
It is not payable until my hubby reaches age 65. It can be cashed in as a lump sum at age 65, but they couldn't give us any idea of how much that payment would be.

[Carneucopia]

So your present PC award should be OK until he reaches 65, because the Ford pension won't pay out until then.
Nearer the time they should be able to give an idea of the 'lump sum' option and, at that stage, I would suggest taking advice from CAB or another Benefits Advisor in your area to help decide which option to take. He will also need to have a State Pension Forecast at that point so that your total pension and other income for when he turns 65 can be as accurate as possible.