Public Sector Pension 'Value'

DiggerUK

PorkBlonde wrote: »

I'm currently working in the public sector........

It may not mean much to you at present.
But as you have asked the question, have you not already answered it?

The future is not rosey in many peoples eyes. Mine especially. So a "best" guaranteed pension is no bad thing. Stay with the best option, stay as you are.

markr007 gives you some very thought provoking figures, do not go further without studying them.

Jazzyjeff_2

dunstonh wrote: »

The employer contribution on a final salary scheme is irrelevant to the end benefit for the individual. The employer has to factor in a number of things when working out their contribution which can lead to significant amounts being paid in during some periods and a payment holiday in others.

A decent final salary scheme and associated benefits can cost the equivalent of 15-25% if you wanted to match them privately depending on the level of risk you are willing to go by.

Your comments are true but more true in the private sector than in local government. County Councils administer the schemes and set rates that are meant to remain fairly static over the short to medium term. They would be very unpopular with District councils if they varied the %'s in a big way, making budgeting difficult and large swings in Council Tax.

markr007

Jazzy, for NHS, Teachers, Police etc. this is true. However, LGPS is run almost the same as the private sector schemes. The only difference is they can be a bit less prudent in their assumptions and spread any deficit costs over a longer period as they are gov't backed.

I believe pension cost increases are indeed an element of council tax rises.