New £140 state pension proposal

jem16

Old_Slaphead wrote: »

If public sector pension schemes change, it is said that all accrued benefits will be preserved - imagine what would happen if they were just cancelled !

Preserving of accrued benefits is the norm with all final salary pensions, both private and public sector.

Old_Slaphead

jem16 wrote: »

Preserving of accrued benefits is the norm with all final salary pensions, both private and public sector.

I know that - the point I was making was that it has been suggested that accruals of Serps/SGP/S2P will be amalgamated into the new £140 pension meaning that many people may not see any benefit from years & years of contributions and may lose significant pension rights.

Of course this is all conjecture - government strategy is that they leak/publicise something with onerous terms and then action something slightly less onerous making everyone relieved that the initial proposals were diluted to something only slightly less unpalatable.

bilbo51

Old_Slaphead wrote: »

I know that - the point I was making was that it has been suggested that accruals of Serps/SGP/S2P will be amalgamated into the new £140 pension meaning that many people may not see any benefit from years & years of contributions and may lose significant pension rights.

Of course this is all conjecture - government strategy is that they leak/publicise something with onerous terms and then action something slightly less onerous making everyone relieved that the initial proposals were diluted to something only slightly less unpalatable.

Here's some more conjecture for you:
http://www.moneymarketing.co.uk/saga-receives-assurances-that-serps-or-s2p-will-not-be-cut-back/1021028.article

dunstonh

I think the daily drip feed of articles offering opinions and assurances from unnamed sources highlights that we really don't know anything other than a very very very basic proposal with no meat on the bone yet.

jem16

Old_Slaphead wrote: »

I know that - the point I was making was that it has been suggested that accruals of Serps/SGP/S2P will be amalgamated into the new £140 pension meaning that many people may not see any benefit from years & years of contributions and may lose significant pension rights.

I realise that.

The point I was making was why you chose to mention only public sector final salary pensions specifically as opposed to all final salary pensions as if it made a difference.

Old_Slaphead

jem16 wrote: »

I realise that.

The point I was making was why you chose to mention only public sector final salary pensions specifically as opposed to all final salary pensions as if it made a difference.

Because public sector schemes come under the auspices of the Government which seems to be creating the rules in this case.

Private schemes are self funded and the government has no control of the individual arrangements (other than setting general taxation rules) which are dictated by directors as the shareholders representitives.

Anyway, private FS schemes are an insignificant issue now as the are virtually extinct.

bilbo51's link seem to suggest that accruals of SSP/S2P etc over the £140 will be preserved. It does mean however with the S2P has been another bad deal for those people without the benefit of the very generous FS schemes.

jem16

Old_Slaphead wrote: »

Bec
Anyway, private FS schemes are an insignificant issue now as the are virtually extinct.

For new members probably. However there are still many who are part of a final salary scheme where their benfits have been conserved.

bilbo51's link seem to suggest that accruals of SSP/S2P etc over the £140 will be preserved. It does mean however with the S2P has been another bad deal for those people without the benefit of the very generous FS schemes.

Did you read the comments under the article?

It appears that those who contracted out into FS schemes will be worse off.

Old_Slaphead

jem16 wrote: »

Did you read the comments under the article?

It appears that those who contracted out into FS schemes will be worse off.

I missed that - thanks. The draft suggestions now seems much more sensible & fair

jem16

Old_Slaphead wrote: »

I missed that - thanks. The draft suggestions now seems much more sensible & fair

If ianyone accrues SERPS/S2P and is still entitled to it then yes it's fair.

However the comment also mentions that the protected rights income would be taken into account first and then the state would top up to £140 if necessary.

Under the new scheme if your protected rights income happened to be £80pw, then you would have £80pw from that and £60pw from the state making £140.

Under the present scheme you would have £97pw from the state pension plus £80pw from your protected rights making £177pw.

Can you tell me how you think this is any fairer and sensible than what you first thought was going to happen?

Old_Slaphead

If that's the way that it eventually pans out and there's not a minimum floor to the pension of £97pw then I agree with you - that's unfair too.