Db Pension Annuity

[Dagman]

Morning ab'ers, does anyone know... I started taking my company db pension three years ago, last year I had a heart attack :( , if I inform the provider of the event now, would I qualify for an enhanced annuity?. Can't find any info on the net other than pre annuity health declarations. Many thanks!

[bobbinwales]

Not 100% sure but allways thought the rate was set at the time you bought the annuity otherwise they after keep reviewing your health every year

[Dagman]

That's my thoughts too bobbinwales, just wondered if there's a possibility it could be done backed up by solid fact, in case it was a straight 'no' from the provider so they wouldn't have to increase my pension. Cheers.

[ubasses]

No, defined pension means you receive an amount defined by the amount you earn on retiring and the amount of years you have been employed/paying into the scheme. Most DB pensions usually offer a reduced pension to spouses/dependents after death.

[Dagman]

Thanks ubasses, I also imagine there'd be some rule where they wouldn't have to increase innuities "after" you sign on the dotted line, protecting themselves. Wouldn't like to develop a serious life limiting condition in that case!

[ubasses]

Depending on your Company they may not even have bought an annuity and it is being funded by current contributors and large top ups from the Company itself. If not the annuity will have been purchased and cannot now been altered. Had you had a defined contribution scheme and bought an annuity yourself and not had any health conditions declared at the time, it could not be changed later.
In most cases the DB is better as it pays an increase every year and pays a spouse pension of 50%. Had you bought an indemnity and asked for a spouses pension and annual increases of a specific % it would greatly have reduced the monthly payments you receive.
Annuity rates have also been very low over the last few years.
When I retired 16 years ago I recall my pension pot being a little over 200,000. My DB pension is now £21,000 pa. If I was buying an annuity with that amount today I would receive around £12000 pa, as a ball park figure.

[Dagman]

Our bd fund ended about 11 years ago and then put on a dc one. We were walked all over despite protests. Unsurprisingly the management all kept theirs though! I did the wise move of avc's which has helped a little.

[ubasses]

That is awful Dagman, my employer closed theirs about 20 years ago, but only to new employees. Everyone in it stayed in it, although I have been told they have since changed the rules so those remaining people now have to contribute and they have moved the goal posts on their retirement date. A lot of unhappy staff.
I am sorry about your heart attack I hope that your life is not too restricted by it. Sadly everything is based on the assessed risk at the date of retirement when the contract is signed.