what should my Dad do? public pension

cypher007

this is the situation:

1) my Dad is 60 and in a public sector job on a final salary pension.

2) his health is getting worse and the Dr has suggested early retirement.

3) hes worried if he takes voluntary early retirment he will loose out due to starting his pension early.

4) but hes also worried that the government will change his pension to an average salary pension soon, so making him loose even more. this is due to him earning alot less earlier in his career.

can someone who knows whats going on with the public sector pensions please give me some advice to give him.

Lokolo

1) OK

2) Maybe the best thing to do.

3) He will lose out on some most likely, but he should check with the pension people as usually there are different rules to those that retire early due to ill health.

4) Final Salary pensions are based on final salary, not what he used to earn.

dunstonh

4) but hes also worried that the government will change his pension to an average salary pension soon, so making him loose even more.

That isnt what the Govt are proposing. Any fears on this front are unfounded.

cypher007

dunstonh wrote: »

That isnt what the Govt are proposing. Any fears on this front are unfounded.

so if he stayed in his current job, and the government introduce average salary pensions to the public sector, how would it affect him? ie: on retiring at 65, would he still get a pension based on his final years salary? or would it be based on his total years worked average salary? or would it be based on final salary upto the change point and the last few years based on average salary?

bigfreddiel

cypher007 wrote: »

this is the situation:

1) my Dad is 60 and in a public sector job on a final salary pension.

so he can retire now public sector retirment age is 60

2) his health is getting worse and the Dr has suggested early retirement.

no need see 1)

3) hes worried if he takes voluntary early retirment he will loose out due to starting his pension early.

no need see 1) and its lose not loose

4) but hes also worried that the government will change his pension to an average salary pension soon, so making him loose even more. this is due to him earning alot less earlier in his career.

not happening until 2014 at the earliest - anything acrued so far isn't affected

can someone who knows whats going on with the public sector pensions please give me some advice to give him.

basically no one knows whats happening or when, its all just proposed changes, but they will happen sometime or other.

cypher007

do these replies still apply to my Dad, as he is only a Head Caretaker?

jem16

cypher007 wrote: »

do these replies still apply to my Dad, as he is only a Head Caretaker?

Assuming he is a member of the LGPS then normal retirement age is 65 so taking it age age 60 would be subject to an actuarial reduction. He may still qualify for the Rule of 85 for membership up till 2008 which may allow unreduced benefits but service after 2008 will be subject to a reduction.

Proposals to change to a career average scheme will not affect accrued benefits.

cypher007

jem16 wrote: »

Assuming he is a member of the LGPS then normal retirement age is 65 so taking it age age 60 would be subject to an actuarial reduction. He may still qualify for the Rule of 85 for membership up till 2008 which may allow unreduced benefits but service after 2008 will be subject to a reduction.

Proposals to change to a career average scheme will not affect accrued benefits.

yes he is an LGPS member. so if he retires after the change he will still get a final salary pension? or put another way a pension based on his final years salary.

jem16

cypher007 wrote: »

yes he is an LGPS member. so if he retires after the change he will still get a final salary pension? or put another way a pension based on his final years salary.

If the changes take place in 2015 as proposed, your dad would have the majority of his service based on final salary and about 2 years based on a career average scheme.

How may years service has your dad with the LGPS?

snowcat53

If there is a good medical reason he cannot continue to work he may be eligible for early retirement on medical grounds, in which case the terms would be better.

cypher007

jem16 wrote: »

If the changes take place in 2015 as proposed, your dad would have the majority of his service based on final salary and about 2 years based on a career average scheme.

How may years service has your dad with the LGPS?

hes put in just over 18 years.

another question he has is, will the governments proposals affect his lump sum payout?