Pensions

NEGU: I need the Never Ever Give Up thought today. Over ten years ago, R had an agreement with his company, EDS, that laid out the rules for the pension scheme. Part of the agreement was that if he died before retirement, as he did, then a pension would be paid to his children while they were in full-time education, up to the age of 25. However, now we learn that a regulation changes this agreement, and the pension will be up to the age of 23. The EDS pensions people have written to P asking him if he is still in full-time education, but telling him that the pension must stop at 23.

I do not see how it can be changed retrospectively, unless we agree. If someone can take away my children’s right to a pension, then someone could take away the pension that I receive, and could take it at any time, maybe when I’m 79, 84, when ever. It’s too late for me to do much to improve my pension prospects now.

I rang EDS to ask. JB told me that new regulations to simplify pension arrangements mean that anyone who receives a pension and is 18 after 6th April 2006, can receive the pension only until they are 23, not 25. I looked up the Inland Revenue web site http://www.hmrc.gov.uk/pensionschemes/draftregs.htm that refers to this simplification, but I can’t see where it says anything about being 23 and losing your pension.

P is so cross that he's already written and posted his letter to our MP.