Pay plus Pension?

Hercules_Grytpype-Thynne

I am still working passed retirement age, but am now thinking of working part-time doing the same job (it has changed somewhat with modern technology) for the same council, but draw my pension out with them that I have been paying into for the last 20 years to make up the money. This they are quite happy to arrange but have warned me that IF the pension plus the money I will earn in the part-time position EXCEEDS what I am earning now full-time, then they will dock the pension back down to my current earnings
Can they do that? And what happens to that ‘lost’ money? Also if I was to take some of the pension in a lump sum, which I am entitled to do, would their calculation take that into account?
Thanking you

Andy_L

Hercules_Grytpype-Thynne wrote: »

Can they do that? And what happens to that ‘lost’ money? Also if I was to take some of the pension in a lump sum, which I am entitled to do, would their calculation take that into account?

Yes, it is in the scheme rules.
It goes back into the pension fund
Don't know

Hercules_Grytpype-Thynne

Andy_L wrote: »

Yes, it is in the scheme rules.
It goes back into the pension fund
Don't know

Thank you for your reply Andy L - just one query from that:-

"It goes back into the pension fund"

Their fund or mine?

Loughton_Monkey

Hercules_Grytpype-Thynne wrote: »

Thank you for your reply Andy L - just one query from that:-

"It goes back into the pension fund"

Their fund or mine?

There is only one fund. It is neither theirs nor yours. It is held in trust and is subject to rules, which the trustees are legally obliged to follow.

Perhaps you should try to get hold of a copy and bone up. It might be best simply not to draw anything, but live off savings for a while.

jamesd

You'd have to ask them about the effect of taking a lump sum. You should carefully consider the amount of lump sum you get per Pound of income given up. It's common for the exchange to be a very bad deal that could cost you more long term than any saving from having the pay cut while working part time.

mjm3346

If it is anything like the civil service classic scheme the "excess" is forever lost to you (abatement) and the size of the lump sum does not make any difference as they calculate the figures based on what the pension would have been before taking a larger lump sum (pre-commutation).

You should be able to find out how much pension you will receive and you can then look to work just enough hours so the new pay and pension equal your present pay or if you know how many hours you want to work then only take part of your pension to stay within the limit.

System

It's a a swindle in other words. You pay into it but they are free to pocket the money.

I bet it doesn't apply to those highly paid staff who retire one day and come back as "consultants" the next.

Hercules_Grytpype-Thynne

Clifford_Pope wrote: »

It's a a swindle in other words. You pay into it but they are free to pocket the money.

I bet it doesn't apply to those highly paid staff who retire one day and come back as "consultants" the next.

AMEN to that! And thank you everyone for your contribution - certainly opened my eyes.
Pension eh? What a mine field, and certainly not what they're cracked up to be.

atush

I bet it doesn't apply to those highly paid staff who retire one day and come back as "consultants" the next.

if it applies to you, then it applies to them. They aren't taking your money, they are taking what the govt/taxpuers paid in and redistributing.


And anyway, isn't that what you propose to do? Retire then keep your same job? Double dipping I beleive?

Honkycat

atush wrote: »

if it applies to you, then it applies to them. They aren't taking your money, they are taking what the govt/taxpuers paid in and redistributing.


And anyway, isn't that what you propose to do? Retire then keep your same job? Double dipping I beleive?

Almost every GP in the country does it or plans to do it.

atush

Half the teachers in my kids primary school were at it.

Retire one day, return the next as a 'supply' teacher.