Revisions to pensions in payment
The Scheme Administrator has recently carried out an exercise to revise a number of pensions in payment. This exercise commenced in 2018 and was completed by the end of June 2019. Robust processes are now in place to ensure that going forward any revisions to payments for retiring members benefits are carried out on a timely basis, which is expected to be, within a few months of retirement.
What is a revision?
A revision is an amendment required to a pension payment, due to an update or change to the information/data, used to calculate a member’s benefits.
What is likely to cause a revision?
Revisions can be caused by new or corrected information being provided, or if it was found that the original payment was calculated incorrectly.
For example, one scenario could be that a member was in receipt of a pensionable allowance on their retirement date which was then included in the calculation of their pension.
However, if it subsequently came to light that the payment of the allowance should have stopped a few months earlier, then this would lead to a revision needing to be carried out on the member’s pension payment. This would in all likelihood result in a reduction to the member’s pension.
What could have caused the late notification of the change to the allowance stopping?
This could have been due to a delay in the processing of payroll information or no notification being sent through to the payroll department.
Alternatively if a period of service was once deemed to be ‘non-reckonable’ (that is, it doesn’t count towards your pension award), but then is subsequently found to be ‘reckonable’ after the member has left the service, then this would lead to a revision of the member’s award, which would in all likelihood result in an increase to their pension.