Cope

Silvertabby · 8 October 2017 at 1:50PM

“ It's just the way it goes. Someone currently in their 50s who has always been contracted out would have a 2016 foundation amount of at least £120 per week (the old basic State pension). If they carry on working for a least 9 years, they will get the full Single Tier pension of £160 per week plus their full contracted out pension.

However, they will pay FULL NI for the post 2016 years. I know people say the NI rebate is peanuts - but it's actually about £25 per month (plus £75 per month employer's rebate) for someone earning £25K.
Originally posted by Silvertabby ”

So an extra £40 per week on paying £25 a month, tough life. Posted by bigadaj

Yes, it's a brilliant deal - but you should have heard the complaints from some LGPS members when we (pensions department) published details of the changes, including the removal of the NI rebate. We tried to make out what a great deal it was - but some people were so angry at having to pay this extra money they actually opted out of the LGPS, claiming they couldn't afford 2 pensions!

bigadaj · 8 October 2017 at 4:10PM

Silvertabby wrote: »

Yes, it's a brilliant deal - but you should have heard the complaints from some LGPS members when we (pensions department) published details of the changes, including the removal of the NI rebate. We tried to make out what a great deal it was - but some people were so angry at having to pay this extra money they actually opted out of the LGPS, claiming they couldn't afford 2 pensions!

Well some saving for the hard pressed taxpayer then.

GunJack · 8 October 2017 at 4:20PM

Silvertabby wrote: »

Yes, it's a brilliant deal - but you should have heard the complaints from some LGPS members when we (pensions department) published details of the changes, including the removal of the NI rebate. We tried to make out what a great deal it was - but some people were so angry at having to pay this extra money they actually opted out of the LGPS, claiming they couldn't afford 2 pensions!

Jeez, did they really not understand it that badly??

Perhaps employers should have a legal obligation to save their employees from gross stupidity :rotfl:

Silvertabby · 8 October 2017 at 4:30PM

Jeez, did they really not understand it that badly??

Perhaps employers should have a legal obligation to save their employees from gross stupidity :rotfl:Posted by GunJack

It's illegal not to allow people to opt out. LGPS administrators just administer the pension scheme, and are not allowed by law to offer actual advice. I used to tell people what they would be giving up by opting out, but most couldn't see past the extra money they would have to spend now.

GunJack · 8 October 2017 at 4:47PM

Sad... in the CS dept. I was in, no-one at all would've ever considered opting out. In some ways the LGPS is even better, as transfers out are possible....

datlex · 8 October 2017 at 5:32PM

badmemory wrote: »

Translation. I have paid full NI for many years to get my pension as have many others, you have not. The new changes mean you can get as much as us after paying in less AND you have the benefit of another pension which we do not (well certainly no where near as good).

Actually I didn't pay less National Insurance. What happened is that a portion (rebate) went to a private pension. This would have gone towards the Second State pension had I not contracted out. It is unfortunate for you that the government has effectively stolen from you the second state pension that you have contributed to. Also for information I only will get a state pension due to enough qualifying years same as everyone else.

Silvertabby · 8 October 2017 at 6:25PM

Sad... in the CS dept. I was in, no-one at all would've ever considered opting out. In some ways the LGPS is even better, as transfers out are possible.... Posted by GunJack

Were you in uniform in the 1980s, during the private pensions mis-selling debacle? Even though the Armed Forces pension scheme was (notionally) non-contributory, private pensions sellers still tried to pursuade members of the Armed Forces to opt out in favour of a private plan. If anyone had insisted on opting out, then the RAF couldn't have legally stopped them. However, we had a cunning plan...... First step would be to speak to a Cpl or Sgt in PSF, who would tell them that if they did opt out then their take-home pay would actually drop as they would have to pay more NI. That nipped most of them in the bud. Second step would be an interview with an old school Warrant Officer, Third step would be an interview with a Junior officer, and final step would be signing the opt out forms in the presence of a Senior officer.

No one got past the Warrant Officer, who loudly explained to them in basic barrack room language exactly why they shouldn't opt out.

GunJack · 8 October 2017 at 9:30PM

Silvertabby wrote: »

Were you in uniform in the 1980s, during the private pensions mis-selling debacle? Even though the Armed Forces pension scheme was (notionally) non-contributory, private pensions sellers still tried to pursuade members of the Armed Forces to opt out in favour of a private plan. If anyone had insisted on opting out, then the RAF couldn't have legally stopped them. However, we had a cunning plan...... First step would be to speak to a Cpl or Sgt in PSF, who would tell them that if they did opt out then their take-home pay would actually drop as they would have to pay more NI. That nipped most of them in the bud. Second step would be an interview with an old school Warrant Officer, Third step would be an interview with a Junior officer, and final step would be signing the opt out forms in the presence of a Senior officer.

No one got past the Warrant Officer, who loudly explained to them in basic barrack room language exactly why they shouldn't opt out.

No, hun, never in uniform, always CS...but there were still plenty of THAT type of WO's around so know exactly what you mean

Cope

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free