My employer has ended the final salary pension.

tomstickland

I've got most of the information already. There's an x million pound deficit which they are going to sort over 10 years and use 40million of property to cover future liabilities.

I'm not too bothered TBH, the way I see it, noone can predict the future, the company are giving me 11% for free and just want to lose crippling liabilities.
They aren't too happy with the way that the calculations of liability and rules have changed every year and the removal of dividend tax breaks.

A few people have muttered that maybe all this extra taxation is going to pay for the civil service finaly salary pension scheme.

I'm going to pay in more than 2.5% or start an additional personal pension, option out of the S2P state second pension. I'm not too happy with the idea of paying into a state pension only for some chancellor to decide to change the rules some time in future.

roswell

Tom, Do they pay more in for you extra commitment ??

tomstickland

No, they pay 11% whatever. My choices are to opt out (why?) or stay in, with my payment anywhere in the range 2.5 to 100%.

roswell

personnaly id leave the contribution at 2.5% then and get some direction from someone on a stocks and shares isa or similar

blisteringblue

Went down the same route last year, our company got sold and threfore lost the final salary pension. That is locked away and I have had my valuation which is now index linked if I leave it in the old scheme.

Our new scheme is what they called a New Generation Personal Pension, where you have your own little pot and therefore some say where it is invested. You can leave it in a low safe return plan or try something higher risk if you are still some way from retirement.

Your 2.5% to 11% investment does seem quite generous, for our offer the Company will match whatever you pay up to a max of 8%, Of course I pay 8% so that they match it with 8% but you can invest as much of your salary as you like, but you will only get 8% from the company.

They have done a very generous 10x pensionable earnings death in service benefit though which is quite above the norm, so I guess its horses for courses.