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Public Sector Strike(s)

MacMickster · 2011-11-29 13:40:29

In his statement today, the chancellor apears to have declared war on the public sector: * Following a 2 year pay freeze, there will be 2 years of only 1% average wage increase (while inflation is running at 5%). For many this will mean a 4 year pay freeze. * Looking to move towards regional pay for the public sector - so…

Comments

jem16 Posts: 19,831 Forumite

11 December 2011 at 4:39PM

bigheadxx wrote: »

Thats what contracting out means!! You accrue S2P alternative in a private pension.

There are different forms of contracting out and different rules apply as I was pointing out.

DB/COMPS schemes pay lower NI
PP/SIPP/Stakeholder pay the same NI but rebated into the pension.

The liability is transferred to a pension company.

As with all schemes.

The worked example presumes that you DO NOT contract out.

I know that.

The money is used to buy an annuity

Doesn't have to be an annuity.

it is not guaranteed by the state.

I don't remember saying it was, quite the opposite in fact.

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