Pension help.

Jessikita1983

Thank you all for your help with my pension situation.

I just have some more questions, if you will. (I have tried the department at work that deal with this, and all I get is "we cannot advice you", I was actually asking for INFORMATION at this point, I have these forums for advice!)

I think I am going to get made redundant in April (long story). I will have 5 years pension at that point. I understand that it will get frozen.

If that's the case, how do they calculate my "final salary", I have been through the mountains of paperwork I have and cannot seem to find an answer.

If/when I am made redundant, if new employer offers a pension scheme, am I much better off joining this one? Or taking a totally private one. (I'm sure I am better off with an occupational one, so I don't know why I am asking, but I like to be sure!)

atush

FS or defined benefit schem have individual rules, and some are Final salary and other are average salary- they have to tell you whihc so ask. I believe you benefit will be indexed until retirement date- but don't quote me. Again it will be in the scheme rules so you should ask and they have to t4ell you.

Stress you are not asking for advice, merely the facts.

Any job you get, where there is an employer penson, and where that employer makes or matches conributions, should be taken up- grabbed in fact. But don't transfer a Final Salary pension to it.

Private pension would be last resort, but worth it if you pay tax (esp higher rate).

hugheskevi

I think I am going to get made redundant in April (long story). I will have 5 years pension at that point. I understand that it will get frozen.

Not frozen - it will increase in line with some sort of link to inflation (CPI if you are in LGPS). Try asking them something like "how will the pension will be revalued once it becomes deferred."

If that's the case, how do they calculate my "final salary"

They apply scheme rules about what your pensionable salary is at the point you exit - probably the best of your last two years of salary based on a quick search of LGPS rules. Try asking them something like "How is final pensionable salary calculated? Is it based on the final year of salary, or the best of the last few years of employment?"

That salary is used along with your years of service to calculate your pension. That amount is then increased by CPI each year until you take your pension.

If/when I am made redundant, if new employer offers a pension scheme, am I much better off joining this one? Or taking a totally private one. (I'm sure I am better off with an occupational one, so I don't know why I am asking, but I like to be sure!)

Take whatever 'free' money the employer is offering. Additional pension saving which doesn't attract an employer contribution may be better off in a totally private scheme.

snowcat53

Put questions to the dept at work in writing, so if you dont get a proper response you can escalate. You are asking for information not advice, as you say