Local Government Pension Scheme

CLAPTON

mjm3346 wrote: »

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.

the current version of the local govt scheme is now a career average one and not a final salary scheme... which version of the prices index will be used to uplift the salary?

m1ntie

CLAPTON wrote: »

the current version of the local govt scheme is now a career average one and not a final salary scheme... which version of the prices index will be used to uplift the salary?

No it isn't

mjm3346

From April 2011 the government will use the Consumer Price Index (CPI) as the measure of prices.
This will change how much public sector pensions and benefits like the basic State Pension will increase each year

The government will set up a commission to investigate the cost of public sector pensions. Its early findings will contribute to the Spending Review on 20 October 2010, with a full report in time for next year’s Budget

http://www.direct.gov.uk/en/Nl1/Newsroom/Budget/Budget2010/DG_188503

PhylPho

Final salary schemes are as rare as hen's teeth in the private sector but as common as rabbit droppings in the public sector. The sooner all that rabbit $hyt is swept away, the better.

mjm3346

PhylPho wrote: »

Final salary schemes are as rare as hen's teeth in the private sector but as common as rabbit droppings in the public sector. The sooner all that rabbit $hyt is swept away, the better.

What PhylPho is saying to you OP is grab it while you can.

jem16

CLAPTON wrote: »

the current version of the local govt scheme is now a career average one and not a final salary scheme...

No it isn't - it's still a final salary scheme.

http://www.lgps.org.uk/lge/core/page.do?pageId=125497

Perhaps you are thinking of the Civil Service scheme?

zarazara

my friend works for her local council. She tells me she pays in £100 a month [ maybe this is £80 her and £20 tax man???]and the council put in £100 also. She is paid £15,000 a year gross. its an admin job. [Most similar jobs in the private sector are about £3,000 pa less than that.] So, I think shes well off, [much better than I am anyway!]. She also has inflation increase everyyear,and was recently moaning about not having had a pay rise for 3 years.
My OH hasnt has a rise , or even a keep-up-with-inflation increase for about 5 years. He has no pension either. I cant get her to see shes doing well. I get depressed at all this.

jem16

zarazara wrote: »

my friend works for her local council. She tells me she pays in £100 a month [ maybe this is £80 her and £20 tax man???]and the council put in £100 also.

On £15k she should be paying 5.9% so approximately £73pm. It's taken off before tax so net result is £58.40. Anything above that is her own choice.

As to employer contribution, it really doesn't matter as it's based on years of service and final salary rather than a total pension pot. However it's accepted that the employer pays about two thirds of the contribution with the employee paying one third.

Old_Slaphead

SALTY69 wrote: »

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

Local Gov't (aka the taxpayer) will pay in 3x as much - for now anyway. It'll probably change fairly soon however as schemes are underfunded and shortfall recovery is to be shared equally between employer/ee.

afc80

my employer (local council/aka taxpayer) put £3600 into my pension last year, i paid in £1200, it is part of the package when working for the greater good of the nation and accepting poverty wages whilst in work.


:beer: