Partial retirement from civil service advice
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Thanks for the comments. I have got my line managers support and am going to apply on Monday to cut my hours. If accepted I will be able to apply for my pension to kick in from when the new hours start.
Bear in mind that the normal advice from MyCSP is to apply for your pension 3 to 4 months before you want it to start.0 -
http://www.telegraph.co.uk/news/2016/12/08/uks-pension-apartheid-worst-developed-world-oecd-says/
Read this and tell me im talking out my backside, and the comments about "comparable jobs" please inform me where in the public sector i can go welding and such like. To read that many will see a 6% percent pay increase when they retire and we will see a 50% cut in income in the private sector is to me criminal when its the likes of us paying for it. We had no choice about having the FS pension pulled from under our feet yet the public sector threw the toys out the pram when any talk of changes was made to their gold plated future income.0 -
, a pension firm, said: “The Government has been relentlessly cutting private pension tax breaks, making it harder and harder for ordinary investors to build a decent retirement fund. They claim costs need to be controlled, yet they happily pour tens of billions of pounds of taxpayers’ money into fantastically generous public sector schemes; this pensions apartheid has to stop.”
Couldnt sum it up better0 -
Read this and tell me im talking out my backside
The emphasis in OECD analysis is to get comparisons across countries, not look at a single country in isolation.
To achieve this, the report looks at what a worker entering at age 20 would earn in salary and pension accrual in the first year. The 1-year of pension accrual is then multiplied by a full working life (48 years) and divided by salary. This is a useful simplification which means they can compare across many countries without having to model the evolution of many different systems, some of which can be very complicated. However, it can fail to take into account important differences in the way systems evolve.
For example, if earnings were £25,000 then pension accrual would be 2.32% of £25,000 or £580. Multiply £580 by 48 and that gives a total pension of £27,840. That is 111% of the salary of £25,000 and is similar to the OECD reported replacement rate. The problem is that individual earnings would be expected to increase by a little more than average earnings but the pension will increase in line with prices. Over 48 years this effect is enormous.
Hence it will not be the case that Civil Servants will get a 6% increase between salary and pension at retirement as the article incorrectly states. If accrued pension increased in line with earnings (ie it was a final salary scheme), the OECD calculation would be the same, but clearly the pension would be worth far more than a pension increasing by only CPI for up to 48 years. Similarly, if the Civil Service had a scheme with lower accrual rates but higher in-service revaluation (such as the NHS uses) the result would be lower due to the methodology even though the pension outcome would be the same.
If instead you take the 20 year old earning £25,000 and assume their earnings growth is 4.5% and CPI is 2%, their pension at retirement (aged 68) is 67% of their pre-retirement salary.0 -
Article: "The public sector has long enjoyed the benefit of final salary pensions and these numbers are a reflection of that. Despite the policies put in place to boost private sector workers' pension it is highly unlikely they will ever enjoy the same type of pension benefits as those in the civil service."
This is saying that the OECD is reporting over a long period. The UK Government recognised this and has changed the system a few years ago. Most people in the public sector are no longer on a Final Salary Scheme and those that are approaching retirement. Most are on a Career Average Salary scheme which is used by many large employers. As I said before this is fair."A spokesman for the Cabinet Office said: "The Civil Service Pension Scheme remains an important part of the total remuneration package."
The Cabinet Office is not that fond of civil servants in recent years it has increased pension contribution rates, capped salaries, converted increases from and introduced these new schemes. I agree change was long overdue but it has already happened.
Note also the comment about the remuneration package. It is the Government's policy to use pensions as a key element of total reward. It saves on salaries. Either way it is the Government's choice. In 2012, it could have just stopped the final salary scheme for all existing staff and introduced a DC scheme with a 5% contribution. It chose not to do this and it was not for fear of industrial action.
The OECD report itself may include more details but as far as I know 2.3% of salary would only deliver 100% of FS in unusual circumstances. Maybe a pensions expert might know?Read this and tell me im talking out my backside, and the comments about "comparable jobs" please inform me where in the public sector i can go welding and such like.
I am not saying you are!
There are lots of jobs in the public and private sectors that are comparable. But not all jobs are available in both sectors. The public sector chose to outsource so many jobs, certainly low skilled jobs and skilled industrial jobs. (So 30 years ago there were probably welders in naval dockyards for example) This means the public sector workforce has a higher proportion of professional and higher skilled jobs. Many administrative jobs have been outsourced or automated as well. So I do doubt that there are any welders left in the public sector..To read that many will see a 6% percent pay increase when they retire and we will see a 50% cut in income in the private sector is to me criminal when its the likes of us paying for it.
I do not know where these figures come from. Nobody gets a pay rise for retiring as far as I know in any job. The latest public sector schemes seem to pay about 2.3% of current salary per yearWe had no choice about having the FS pension pulled from under our feet yet the public sector threw the toys out the pram when any talk of changes was made to their gold plated future income.
Overall public and private sector workers both accepted the loss of FS pensions. Alright the public sector unions made a bit more fuss but the workforce were not up for taking on the Government.
The gold plated notion was the case and the current pensions for staff are fairly good, but they are no longer gold plated. Those retiring in the next few years will still benefit from FS pensions but after that the career average salary will become an increasing part of their salary and they too will need to work to SRA (66-70)., a pension firm, said: “The Government has been relentlessly cutting private pension tax breaks, making it harder and harder for ordinary investors to build a decent retirement fund. They claim costs need to be controlled, yet they happily pour tens of billions of pounds of taxpayers’ money into fantastically generous public sector schemes; this pensions apartheid has to stop.”
Couldnt sum it up better
It is true the Government has been cutting the tax breaks for high earners investing in DC schemes. But these rules also mean that those in DB and FS schemes are also limited in the tax breaks they can get. For most people the annual allowance is not an issue.
As I said changes have been to public sector pensions, but you cannot take away benefits that people have earned before the changes were introduced. But even then pay restraint and higher contributions is reducing the value of the pension benefits even there.Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0 -
jamesperrett wrote: »Bear in mind that the normal advice from MyCSP is to apply for your pension 3 to 4 months before you want it to start.
Am looking to September to reduce my hours.0 -
...making it harder and harder for ordinary investors to build a decent retirement fund...
How many ordinary investors are going to be constrained by being pension millionaires? How many ordinary investors can afford to place £40k pa into a pension given that the average salary is around £27k.0 -
Hi
Meant to do this earlier, but having retired early, I just cant find the time...
"It looks to me as if retiring at 60 is another benefit to the public sector whilst us have to wait to access all our pension is for me anyway 65 ...................someone like to enlighten me whats fair about that !! And yet the public sector contribute sweet FA into our pensions whilst we help fund theirs "
Q: What is normal retirement age?
A: Normal retirement age for professional footballers who were in membership of the scheme before 6 April 2006 is 35 years of age. For members who joined after that date, the normal retirement age is 55 years of age.
So Private Sector (Sweet FA) is as early as 35.0 -
Hi
It is about negotiation with the employer.0 -
http://www.telegraph.co.uk/news/2016/12/08/uks-pension-apartheid-worst-developed-world-oecd-says/
Read this and tell me im talking out my backside, and the comments about "comparable jobs" please inform me where in the public sector i can go welding and such like.
The Royal Electrical Mechanical Engineers.0
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