Forum for former BBC staff

Forum for former BBC staff
http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl >> Pensions >> The PIE plan has now been published. http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl?num=1447366099 Message started by ianpollock on Nov 12^th, 2015, 10:09pm

Title: The PIE plan has now been published.
Post by ianpollock on Nov 12^th, 2015, 10:09pm

I received today my personalised "quote" from the BBC under which I may, if I am interested, forego inflation proofing on some of my pension in exchange for a higher level of pension from April next year. I was surprised at the size of the immediate uplift I am being offered - nearly £3,000 a year extra, for abandoning inflation proofing on just 20% of my pension (the bit that is eligible for this exercise). However as I plan to live long enough to make a loss by taking up the offer, I shall ignore it. What about you?

Title: Re: The PIE plan has now been published.
Post by JohnW on Nov 13^th, 2015, 10:01am

Just so you don't feel that you're the only one Ian, I too received my personal quote yesterday. My, but it's a confusing set of figures and words.

Very surprised that my 'immediate uplift' seemed to be rather more (~£8K), and it's certainly tempting, but one needs to bear in mind that the Odious Mr Osborne is also holding his hand out as well - and personally I don't want to play his game!! He's doing enough on my savings as it is!

For the moment therefore, like Ian, I'm not biting on this particular offering - just hope I live long enough not to regret my wife's decision!!

Title: Re: The PIE plan has now been published.
Post by John on Nov 13^th, 2015, 2:40pm

John W,
You may not like Mr Osborne but there is no need to be so offensive.

Title: Re: The PIE plan has now been published.
Post by JohnW on Nov 13^th, 2015, 5:09pm

And there I was being 'polite'! [I could certainly have used a very different word to describe him but that would have got me into trouble with the Admins for this forum.]

Besides I don't think you really want to know what I actually think of Camoron and the rest of his Tory gang ... including the aforementioned personage.

Title: Re: The PIE plan has now been published.
Post by Kirkdale1 on Nov 14^th, 2015, 4:57pm

Ok, I've had my personalised quotation and I've been wrestling with the figures and possible future scenarios for days and sleepless nights!!! >:(

So many ifs, buts and maybes. I'm coming to the conclusion that to accept the offer is obviously a punt as there are so many variables in play.

But to fully round my discussions out, can anybody tell me what happens to the current index linking if deflation occurs and RPI goes into negative territory ?

Ggggggrrr wish I'd never been sent the damn thing.

Bob

Title: Re: The PIE plan has now been published.
Post by Knocking On on Nov 15^th, 2015, 2:42pm

Hi Kirkdale 1,

I asked the exact same question while speaking to someone at BBC Pensions, the answer was that if the inflation figure was negative or 0% then there would be no pension rise. Certainly no reduction should the figure be negative.

If inflation rose above 5% it would be at the discretion of the Trustees if they would allow payment above 5%.

It wasn't clear though if the rate was negative or 0% if a discretionary payment would be allowed.

The way things are going with inflation at the moment maybe we will get the answer in next Aprils payment!.

Title: Re: The PIE plan has now been published.
Post by Kirkdale1 on Nov 16^th, 2015, 8:53am

Thanks for the reply. Something else to add to the mix.

I've been offered a 26% uplift from April on my current pension. It's tempting but I keep factoring in all the "unknown variables" and I'm wobbling like jelly on a plate.

I'm 63 and probably at the younger end of the spectrum of the Old Benefits club ;) so with any luck I could go on for quite some time :D Which is why I'm sure the Scheme would love me to sign up.

Decisions, decisions !!!

Title: Re: The PIE plan has now been published.
Post by apcwmwl on Nov 21^st, 2015, 5:46pm

Having spent 1.5 hours on the phone to my Chase de Vere "adviser", I would only comment that I stand to gain £5000+ per year from next April. At 71, my Break-even point @3.25 is 86 & Cross-over is 79. However was was not factored in was that since I opted for a levelling option originally (pension taken at 50 following redundancy package), at 75 there is an increase of in excess of £2000 on that basic pension since levelling adjustments will have been refunded.
I have decided to accept the offer not only after the details have been forwarded to me, but after discussion with my spouse, who stands to gain a substantial increase in dependant income through this process. Haven't signed on the dotted line yet, but the extended cruise next year is beckoning! ;)

Title: Re: The PIE plan has now been published.
Post by V Meldrew on Nov 24^th, 2015, 1:23pm

I too spent about an hour talking to Chase de Vere this morning. I also had done some maths before the talk. They couldn't really advise me, I discovered. It was really down to advising me on the risks.

I stand to get about a £5300 lift on the pension, but about half of my existing pension would still be eligible for the annual rise. I don't get my state pension until next year (at the new rate, whatever that might be in my case).

I had worked my maths on 2% inflation, which gave me a "cross over" point in about 12 years time. But by that time I would have "accumulated" about £35,000 more over that period compared to the "standard" BBC pension. That is the compound difference between the existing pension and taking the PIE option.

So it really boils down to, do I want extra money to enjoy now while still fit and active?

I could also take the PIE option and save the money to have a lump sum available for the future.

Not an easy decsion, when nobody can know the future!!