Posted by A Palmer on 04 December 2000 at 19:54:51:
Several of us whose pension was capped because we joined young and left in out mid 50s have been wondering why we lost up to 10% of our pension. I have tried the same route as others -to get Pension Dept to re-look at it all - with no success yet. But I now realise that I'd forgotten that IBM always said that execess money would be returned over time. The following is the latest state as far as I am concerned.......
Kevin Waller recently sent me MIL 582 which gives an example showing that those whose pension is capped by the 66.7% x final earnings x (actual service to retirement/potential service to 60) formula, will get it back over time. The MIL says "the excess is held in credit.......this amount will be used to increase the pension in payment in line with Inland Revenue guidelines"
At least those who were in the N plan from an early age and who left around 50-58 are likely to have had their pension capped.
I await the outcome of a review of my particular case.