Tourist board pension vs. Lothian pension fund

tabbiecatz

My partner is perplexed as to which of these two schemes is better/worth signing up for.

These two links are public and do not require sign-in:

https://docs.google.com/open?id=0B_8Fvqtu95pcNWhFSnZfTDM0ZFU
https://docs.google.com/open?id=0B_8Fvqtu95pcbGVWUDI3dXVFRVE

Any advice from someone who knows the jargon appreciated.

Partner is age 24 and earns about £17,000 per year before tax.

mania112

Lothian Pension is a Final Salary Scheme.

For 5.5% of his current salary he well receive a pension based on 1/60th of your final pay – so if you have 40 years membership you get 40/60ths or two thirds of your final year’s pay as an annual pension.

So if he retires with more than 40 years service, and let's say at that time his 'final salary' is £60,000 a year, his pension will pay £40,000.

The British Tourist board pension operates with the same benefit (60ths) and only asks that you pay 5% per year and allows the scheme to run up to 45 years (so £45k on a final salary of £60k, if he works long enough).

The British Tourist board pension offers a cash lump sum at retirement of up to 25% (which will reduce the pension, but not the spouses benefit), so that's a plus (even if you don't know if you'll use it, at least the option is there).

It's not clear what the comparison is between spouse's pensions (what you get if you're married by then, when he dies).

- Both are excellent, I would give the edge to the British Tourist board because it requires less money paid into it for almost identical benefits.

jem16

mania112 wrote: »

Lothian Pension is a Final Salary Scheme.

At the moment - yes.

However the OP should be aware that as it is part of the LGPS (Local government Pension Scheme), it will be changing to a Career Average scheme in 2014/15.

I'm not sure if the British Tourist Board pension will be changing or not.