Police pension scrapped

leereni

There is talk amongst police the current pension scheme will be scrapped from 2015 and it is unknown what will happen afterwards. I appreciate nobody really knows what's going to happen, however I was wondering if anyone had any thoughts. The last time they changed the pension scheme in 2006 they allowed people to continue in the old scheme and only new recruits had to join the new one. I can't see that happening this time. There is also a rumour that people will be able to take out the contributions they had put in.

There was a thread already on this topic and I gathered most people stated that whatever scheme was offered it was still better than any other pension scheme. I've got to question the merits of that statement. If the pension was frozen from 2015 and not transferred could that be treated as a deferred pension and paid from 67?

Does anyone have any thoughts?

jem16

leereni wrote: »

The last time they changed the pension scheme in 2006 they allowed people to continue in the old scheme and only new recruits had to join the new one. I can't see that happening this time.

It won't. The proposed changes for public sector pensions will happen for all members, new or old.

There is also a rumour that people will be able to take out the contributions they had put in.

You can safely ignore that rumour. You would also be very daft to do so even if it was true.

There was a thread already on this topic and I gathered most people stated that whatever scheme was offered it was still better than any other pension scheme. I've got to question the merits of that statement.

Why would you question that statement? What other pension scheme will make up for the lack of the employer contribution?

If the pension was frozen from 2015 and not transferred could that be treated as a deferred pension and paid from 67?

If you foolishly chose to opt out of your pension scheme, you would become a deferred member and would be able to access your accrued pension at whatever the retiral age currently is.

dunstonh

There is also a rumour that people will be able to take out the contributions they had put in.

That would be unlawful. I doubt the police would do something unlawful!

There was a thread already on this topic and I gathered most people stated that whatever scheme was offered it was still better than any other pension scheme.

Bascially it is going from a staggeringly spectacularly good scheme to a damned good scheme that any person in their right mind would join if they had a chance. Pound for pound spent by the member, nothing else will beat it and it will still wipe the floor with most private sector offerings.

leereni

Ok thanks for the comments.

I also heard the pension scheme will finish in 2015 and those who wish to have one will need to find a private scheme. This is why people are saying you'll get your contributions back as no private scheme would offer anything like the advantages of the current one. Most notably an earlier retirement age of either 55 or 60.

I know quite a lot of people who are considering coming out of the scheme if the age increases to 60. What police officer wants to be working at that age?

dunstonh

I also heard the pension scheme will finish in 2015 and those who wish to have one will need to find a private scheme. This is why people are saying you'll get your contributions back as no private scheme would offer anything like the advantages of the current one. Most notably an earlier retirement age of either 55 or 60.

Workplaces tend to be rife with misinformation. Some of it because you get Daily Mail reader types who think they know everything but know nothing but others believe them. Or stories that do the rounds and get changed each time they are repeated or Union reps making things up or distorting information to suit agenda. Or just plain guess work and opinion.

The Govt has not made any proposal to end occupational pension schemes for any public sector workers. However, "private" schemes allow commencement of pensions from age 55. So, people saying you will get money back as private schemes cant do 55 or 60 are really far from the mark.

I know quite a lot of people who are considering coming out of the scheme if the age increases to 60. What police officer wants to be working at that age?

Perhaps one that lives in the real world who realises that 60 today is like 75 from 20 years ago.

They would be fools to leave. Nothing else they can put their money into will give them the same benefits. If they still want to finish early then they can. They will just need to fund that gap. Leaving the pension scheme would be one of the worst financial decisions they could ever make. It would be a staggeringly bad decision that would equate in cost to hundreds of thousands very easily.

leereni

Yes I take on all your points. BTW I'm not agreeing with what people tell me.

The reality is that most police officers don't want to be in the job over 50 never mind over 55 and probably most don't want to be in it full stop due to other changes in pay etc. Some are thinking about investing in property and using that as a nest egg for retirement. This would give them more flexibility in leaving when they want and doing something different. Problem is these pensions lock you down and before you know it you haven't got those options.

Deneb

Either (hopefully) the OP isn't a police officer, or basic investigative skills have declined since I retired.

A few seconds spent on Google reveals that although the new scheme has not been finalised, there are outline proposals which in no way reflect the OP's original comments.

http://www.tvpfed.org/news/?/PENSIONS+UPDATE+-+9th+May+2012/639/

dunstonh

Problem is these pensions lock you down and before you know it you haven't got those options.

The pension does not lock you down. What the individual decides to save up decides whether they are locked down or not.

leereni

Deneb if you are a retired police officer don't you have anything better than to offend those serving ones who do not have the time to spend all day on google looking for answers.

In case you wondered I had spent quite a while looking on the Internet on the fed. Site and others. These give little information as there isn't much out there. The idea with coming to this site would be to gain an independent view on pensions and the likelihood of what may happen and also to compare to other schemes. But thank you for your constructive comments.

Dunstonh....
I appreciate a pension is not compulsory, however for those who join it being told if they don't they're committing financial suicide and then years down they are disillusioned because the arrangements they had not only with the pension but the job they are doing in general are falling apart. What are they supposed to do? Continue being pushed around by the government who attack your pay, pension and anything else they can disrupt you with or get out.

BTW a pension is not a savings account it is an agreement between yourself and the provider. What type of savings account can be changed so drastically many years after signing up for it. I would say its closer to an investment.

BTW no hard feelings....

laurel7172

Leereni-what is anybody supposed to do, disillusioned in middle age and wanting out of their job ASAP?

I promise you, the light at the end of the tunnel will be a lot closer if they've been in a good pension scheme.

leereni

I'm middle aged ))). Thanks.

I'm looking forward to seeing the light....