Local Government Pension Scheme

steviep43

I've been putting off joining my Local Government Pension Scheme as I would struggle paying in the minimum amount of around £100 per month but feel as I'm now 30 I should now have one. What's the general feeling about joining the LGPS now? I don't know much about them to be honest but have been trying to follow the news that they may be shaken up in the future with the benefits reduced. With that in mind should I join it ASAP in order not to miss out on the current benefits e.g. final salary etc.?

Many thanks

Peelerfart

I'm no pension expert but - yes join it. There will come a time when you will be so pleased that you did.

SALTY69

I have paid into my scheme and will be due in 2 yrs time pay in as much as you can asap.

molerat

Join now because you won't get anything as good for the price plus it may all be changing soon (have you not been listening to the news). If £100 is the gross contribution you will not be paying tax on it so you will only lose a maximum £80 out of your pocket.

SALTY69

Also any amount you pay into it the local government pay in just as much.

Spongbong

Was anything announced about the proposed changes to the scheme today? I can't find anything online; is it not part of the budget?

mjm3346

I believe he slipped in something about public sector pensions increasing in line with CPI instead of RPI.

I think the figures for May 2010 were CPI 3.4% and RPI 5.1% so a £6000/year pension would increase by £102/year less under CPI than RPI (if that was the month used to calculate the increase, September is used for at least some of them).

Spongbong

mjm3346 wrote: »

I believe he slipped in something about public sector pensions increasing in line with CPI instead of RPI.

I think the figures for May 2010 were CPI 3.4% and RPI 5.1% so a £6000/year pension would increase by £102/year less under CPI than RPI (if that was the month used to calculate the increase, September is used for at least some of them).

Thanks so much but...um what is CPI and RPI?:o

It's my husband that has the pension so I don't know a lot about it (just that £130 per month goes from his wages).

mjm3346

Different measures of price increases, consumers prices index and retail prices index, this would not change his pension only the amount of any increase on it.

CLAPTON

mjm3346 wrote: »

Different measures of price increases, consumers prices index and retail prices index, this would not change his pension only the amount of any increase on it.

that rather depends upon what sort of pension he is contributing to

mjm3346

CLAPTON wrote: »

that rather depends upon what sort of pension he is contributing to

The change relates to increases in public sector pensions it is not a change to the schemes (still to come), the pension above would seem to be a local govt final salary scheme.