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Local Authority Pension Question
babyblooz
Posts: 1,122 Forumite
Hello, quick question for anyone who could help.
If someone paid into their pension, on a final salary scheme, and they spent all their working life with the same local authority, would they get aprrox. 2/3rds of their final salary as a pension.
Just checking husbands pension stuff. He transferred in to it mid working life, from a higher paid job into a lower paid job (got made redundant from first job) so we were advised to use his previous pension pot to buy additional qualifying years in local government scheme. He is 55 and his pension projection at the minute is showing as around half of his current salary. As he has another ten years to retirement will this bump up over the years til he retires? He has sixteen years actual service with council, but it shows he has twenty six years service, so I suppose that is the extra years bought by his previous pension pot.
Does that seem right? I can't check with the pension authority until tomorrow and its bugging me!!!
I hope I have explained this properly
If someone paid into their pension, on a final salary scheme, and they spent all their working life with the same local authority, would they get aprrox. 2/3rds of their final salary as a pension.
Just checking husbands pension stuff. He transferred in to it mid working life, from a higher paid job into a lower paid job (got made redundant from first job) so we were advised to use his previous pension pot to buy additional qualifying years in local government scheme. He is 55 and his pension projection at the minute is showing as around half of his current salary. As he has another ten years to retirement will this bump up over the years til he retires? He has sixteen years actual service with council, but it shows he has twenty six years service, so I suppose that is the extra years bought by his previous pension pot.
Does that seem right? I can't check with the pension authority until tomorrow and its bugging me!!!
I hope I have explained this properly
:hello: :wave: please play nicely children !
0
Comments
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Complicated stuff but 16 years of employee contributions is worth 16/80th of council salary in a local government scheme. Ten more years of paying for it would get to 26/80th of council salary. The difference of 14/80th to get to half salary (40/80th of salary) could be the money transferred over from the previous pot
Two thirds salary would take 53 years of employee contribitions (53/80th to get two thirds) under the rules that existed until Apr 09 so I'm not sure were you get that from.0 -
You mention getting a 2/3rds salary pension. Which version is he in:
The "old one" which, as Former Spice says, would accrue at 1/80ths in which case you can't get a 2/3rds pension even with max service, although you do get a 3x lump sum as well or,
The "newer one" which accrues at 1/60ths a year in which case max pension is 2/3rds although to get the lump sum you have to sacrifice annual pension0 -
Oooh right, complicated! I'm not sure which it is to be honest, but thanks for explaining it in a way I can understand. I will have to sort out some more paperwork and get the details.
Thanks all!!!:hello: :wave: please play nicely children !0 -
Babyblooz - doesn't your husband's pension projection show two figures.
One is pension accrued to date and one projected to scheme retirement age, whatever that is. You say projection is half salary so I assume that is what he will get at scheme retirement age.0
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