Pension Changes

[Digimon]

For those of you in the 'old' Defined benefit pension scheme', did you notice that once again the pension deficit has increased by a further £300+ million in the last 6 months. Perversely, this increase almost mirrors Dave's 300 million deliverance of profit (one of his key measures enabling the Tesco flag waving PR exercise).

If you're over 55 and in a position to downdraw some of that pot, I would recommend doing it while there is something left to make use of, otherwise keep a close eye on the deficit in the next couple of years or so. In twenty years time, or less, there could be bugger all left.

[burns2015]

Is the 1 wks pay not to the old pension pot.

[silver surfer]

For those of you in the 'old' Defined benefit pension scheme', did you notice that once again the pension deficit has increased by a further £300+ million in the last 6 months. Perversely, this increase almost mirrors Dave's 300 million deliverance of profit (one of his key measures enabling the Tesco flag waving PR exercise).

If you're over 55 and in a position to downdraw some of that pot, I would recommend doing it while there is something left to make use of, otherwise keep a close eye on the deficit in the next couple of years or so. In twenty years time, or less, there could be bugger all left.

Once again let me state in the Defined Benefit scheme there is not such a thing as a "pot" and it is not possible to draw down something that does not exist. If you are over 55 you can take the full pension monthly pension for the rest of your life or you can take a reduced monthly lifetime pension and tax free lump sum up to 25% of the value of your pension. If you choose the latter they will be set up at the same time. If you take the 25% tax free you have to take the rest as a monthly pension at the same time - you cannot leave the balance to draw down later.

[silver surfer]

Is the 1 wks pay not to the old pension pot.

No - it is an inducement to join the new scheme and can be seen as a kick start to your pension pot.

[Loki]

Introduction to Tesco's New Retirement Scheme

Further to Tesco's recent decision to introduce a new Retirement Scheme, the Tesco Retirement Savings Plan ("the Plan"), outlined below is a brief introduction to Tesco's Pension Scheme:

What is the Tesco Retirement Savings Plan?

This is the new retirement savings plan available to employees of Tesco, which is being provided by Legal & General. If you are currently participating in the Tesco Defined Benefit scheme you will shortly receive a letter confirming the details of the new plan.

Information about the new plan can also be accessed on Tesco's new website at:
https://www.thecolleagueroom.com/login

Posters will be put up in stores and workplaces, a dedicated pension helpline number is available on 0345 070 1113 and People Managers will be provided with copies of the forms.

Usdaw's Pension Team will also be on hand to take any of your queries.

When will the Tesco Retirement Savings Plan be available?

The new Plan will commence with effect from 22 November 2015.

How do I join?

Individuals will automatically be put into the new scheme including:

* current members of the Defined Benefit scheme;

* anyone who has opted out of the Defined Benefit scheme in the past;

* new employees between the ages of 22 and 75 who have completed 3 months' service.

If you do not fall into one of these categories you can apply to join the Plan at any time, by using the new Tesco website, by phoning the Pensions Helpline number or by talking to your personnel Manager.

Once you have joined the Plan you will receive a confirmation letter from Legal & General.

A workplace savings scheme is still the best way to save for your retirement and Usdaw would encourage all of our members to join the new scheme. However, if you do wish to opt out and receive a refund of your contributions, you must do this ONLINE within 30 days by using the code provided in the joining letter from Legal & General.

Contact Usdaw for more information

Usdaw members can contact the Union's Pensions Section on 0161 224 2804 or email pensions@usdaw.org.uk.

Usdaw Factsheet:

http://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=a846b3eb-6a1a-4d0a-a6a4-56c17c40befe

[bobbywm]

so basically.  if i'm in the current pension scheme,  i need do nothing. ?

[Hammer10]

Tried to register it don't work rang them up as usual next to bloody useless .

[burns2015]

so basically.  if i'm in the current pension scheme,  i need do nothing. ?

if you want to pay in more than the 4% you will need to change it.

[Mickymouse1962]

as the old pension would be frozen I am going to transfer it to my standard  life pension

[Mickymouse1962]

as for the new one no thanks company won't be around for me to get it I hope

[picktocube]

as the old pension would be frozen I am going to transfer it to my standard  life pension

Hope you get full advice ,before doing that ,because I believe the transfer value will be substantially less than if you leave it where it is. In most cases you would be worse off.

[mexicopete]

as the old pension would be frozen I am going to transfer it to my standard  life pension

Any Financial Adviser who advises you to transfer your Tesco pension into the Standard Life policy is only doing it for his own financial gain as it most certainly bad advice. There are all sorts of guarantees built into the Tesco Defined Benefit scheme that you will lose by transferring it. You will most definitely be worse off by doing so.

[usualsuspect]

I was advised by a personal friend , who is an established IFA that it would be a definite no no to even consider moving out of the scheme. He stated it's a no brainer no private scheme can get anywhere that which you have... lucky lad he said.

US

[oliver]

Usualsuspect. The pension is not as good as it was but better than a private one with all the extras that you wouldn't get with a private one.read the pension fact sheet.

[lackofinterest]

Introduction to Tesco's New Retirement Scheme

...............

A workplace savings scheme is still the best way to save for your retirement and Usdaw would encourage all of our members to join the new scheme. However, if you do wish to opt out and receive a refund of your contributions, you must do this ONLINE within 30 days by using the code provided in the joining letter from Legal & General.

Contact Usdaw for more information

Usdaw members can contact the Union's Pensions Section on 0161 224 2804 or email pensions@usdaw.org.uk.

Usdaw Factsheet:

http://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=a846b3eb-6a1a-4d0a-a6a4-56c17c40befe

how do i optout BEFORE i'm automatically put in?

[Nomad]

https://www.gov.uk/workplace-pensions

'Automatic enrolment'

A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:

   

• are aged between 22 and State Pension age
• earn more than £10,000 a year
• work in the UK

I can find no mention of a prior opt out being possible, except if you already have a pension pot of £1.25m

[lackofinterest]

therefore it looks like i have to opt out AFTER  being forced to join? what happened to freedom of choice??

[oliver]

The government took that away where have you been ?

[GAIL75]

I had heard a rumour we were going  to be offered a buy out of old pension? Any one heard anything?

[Loki]

Absolute bovine

[silver surfer]

I was advised by a personal friend , who is an established IFA that it would be a definite no no to even consider moving out of the scheme. He stated it's a no brainer no private scheme can get anywhere that which you have... lucky lad he said.

Well get a second opinion. Your transfer value will almost certainly be less than leaving it where it is. If you are married and have young children you need to factor in the potential value of a spouse or dependents pension if you snuff it. You would have accrued those  in the DB scheme. You are unlikely to get those benefits in any standard private scheme.

[AlexM]

Got my letter yesterday telling me how to register for the colleague room website. I noticed, tucked away in the small print at the back, that I'll now be paying more national insurance. They never told us about that bit when they were talking about tax relief on our pension payments, did they?

[Denzil]

I thought once registered I would be able to access my own personal plan stating how much would be transferred across.
I can't find this information anywhere, is it available does anyone know?

[Hammer10]

Statements are coming out in January to let you know what you currently have in old plan.

[Denzil]

Thanks Hammer