In Reply to: Re: Immediate vs deferred pension - pros and cons posted by Grumpy Guts on 22 August 2002 at 15:49:12:
Sorry. What I mean is that the deferee has to take account of the fact that the RPI calc is or was done based on Sept figures. So in my case for example:- I retired in June and took pension in a July more than a year later. The age calc etc was done based on the July date but the RPI increase was to the PREVIOUS SEPT. So, RPI to Sept 02 will be actioned for pension taken ON or AFTER Jan 03. If the RPI at Sept 02 is 1.5, that figure is used from Jan 03 to Dec 03. So, other things being equal, a good time to take a deferred pension is any Jan. I did NOT know that when I selected July. When I found out I challenged IBM (as the pre-retirement paperwork simply said RPI). IBM said they couldn't possibly detail EVERYTHING! Since they would only have to add "RPI is calculated once per year in Sept then used ALL the following year", I was furious. As you can guess that IBM just (metaphorically) shrugged!!!