Public Sector Pensions

lkmartin

I know what some public sector employee's pay into there scheme - these are real %! 1.5% up to 3.5% tops with employer contributions of up to 25%(I Kid you not!) Final salary!

JoeCrystal

That is very good question and according to their website, or rather in forms and guidance sectors of their pension schemes:

The NFPS is a final salary pension scheme which means that your pension will be a proportion of final pensionable pay. The proportion will depend, in part, upon how much pensionable service you have at the time of leaving the Scheme. For each year of pensionable service, you will get 1/60th of final pay. Each day of pensionable service will count as 1/365th of 1/60th. That was back in 2006.

Compared to the older 1992 version:

The FPS is a final salary pension scheme which means that your pension will be a proportion of final average pensionable pay. The proportion will depend, in part, upon how much pensionable service you have at the time of leaving the Scheme. For age and ill-health pensions, a principle of "fast accrual" is used. For each of the first 20 years of pensionable service, you will get 1/60th of average pensionable pay and for each of the following years you will get 2/60ths of average pensionable pay. Each day of pensionable service will count as 1/365th of 1/60th. The maximum number of 60ths that you can count is 40 (after 30 years' service).

Old_Slaphead

CLAPTON wrote: »

in the 80s the government deregulated financial services without creating effective alternative regulation; this lead to massive pension mis-selling which cheated many many people of a decent pension

Sure did - but not those naive enought to transfer out of FS pensions. They, in the main, got their money back. It was us poor suckers who went in with our eyes open into private WP schemes that were forced to bail out their stupidity - that's where most of the mis-selling compensation came from.

caledonia84

jem16 wrote: »

So is the NFPS not a final salary scheme?

Sorry, apparently it is a final salary scheme............my mistake.

I was under the impression we had been moved to an average earnings scheme. I must be getting confused with what is being proposed and what I have.

caledonia84

lkmartin wrote: »

I know what some public sector employee's pay into there scheme - these are real %! 1.5% up to 3.5% tops with employer contributions of up to 25%(I Kid you not!) Final salary!

Is it true MP's only had to do 1 term (4 years) to get a full pension or have I been fed a myth?

JoeCrystal

caledonia84 wrote: »

Is it true MP's only had to do 1 term (4 years) to get a full pension or have I been fed a myth?

... Yes, it IS a myth.

However, their pension scheme is also a final salary scheme with a current accrual rate of 1/40th (if they pay 10% contribution) or 1/50th ((if they pay 6% contribution). But the new members can only opt for 1/50th accrual rate within first three months of getting elected if they want to.

Mind you, it is good deal for MPs if you think about. 4/40 is 10% of salary (which is according to one site is £65,738), meaning an pension of £6,573.80 once you reach retirement age if you only serve for one term. (would be higher since it be index-linked and so on). Considering it would only cost them £26,295.20 over four year. It is pretty good deal!

EDIT: The MP's pension schemes seems to differ somewhat on different sites so, do not take it as 100% accuracy.

CLAPTON

Old_Slaphead wrote: »

Sure did - but not those naive enought to transfer out of FS pensions. They, in the main, got their money back. It was us poor suckers who went in with our eyes open into private WP schemes that were forced to bail out their stupidity - that's where most of the mis-selling compensation came from.

I don't understand what you are saying here.
(what does 'WP' mean?)

JoeCrystal

CLAPTON wrote: »

I don't understand what you are saying here.
(what does 'WP' mean?)

WP could mean "With profit"? :think:

Old_Slaphead

CLAPTON wrote: »

I don't understand what you are saying here.
(what does 'WP' mean?)

I'm agreeing with you but saying those who were mis-sold mostly got their money back at the expense of existing private pension plan holders (they were the 'innocent' ones that actually suffered with many years of dire returns after their with profits funds had been pillaged by the insurance companies to pay mis-selling compensation).

Old_Slaphead

JoeCrystal wrote: »

... Yes, it IS a myth.

Apart from, I believe, The Speaker.

I read somewhere (I think, or I may have been hallucinating) that they only need to do 1 day in post and they get 50% of salary as a pension for the rest of their life.