Has the flat rate pension been delayed or killed?

Dunroamin

gadgetmind wrote: »

Surely a teacher's pension would be on top of SP whether flat rate or not?

Yes, but at the moment it's on top of £170 SP rather than on top of £140 flat rate!

Dunroamin

seven-day-weekend wrote: »

Please confirm in words of one syllable that I, as an existing Pensioner, will get my State Pension of (on today's rates) £115 pw plus my Local Authority Pension of £50 pw. Thanks.

I can't see why not, that's how it works for me with my teacher's pension. Surely it works like that for your husband?

seven-day-weekend

I was under the impression that the £140 pw would not apply to existing pensioners?

seven-day-weekend

Dunroamin wrote: »

I can't see why not, that's how it works for me with my teacher's pension. Surely it works like that for your husband?

He does not get his State Pension yet, not old enough until 2014

I just wondered whether it would be the same under this flat rate system, or whether it would be deducted off the SP, down to £140 pw.

I would expect both of us to get our full SP's (which will both be under £140 pw) plus our full Occupational Pensions.

gadgetmind

Dunroamin wrote: »

Yes, but at the moment of it's on top of £170 SP rather than on top of £140 flat rate!

HMG have said that pension benefits accrued to date (even by those not yet retired) will be recognised.

As it happens, I'll have only accrued about £140pw in SP by the time I plan to take very early retirement, but my wife would benefit from this change. Swings and roundabouts.

jem16

Dunroamin wrote: »

Yes, but at the moment it's on top of £170 SP rather than on top of £140 flat rate!

How did you manage to accumulate £170 SP on top of your Teachers' Pension? Presumably either by not teaching your whole working life or by inheriting some spousal additional pension.

To make it clear, for teachers (and any other person who has been contracted out for all of their working life), only the Basic State pension would be paid which is currently £107.45. No SERPS/S2P would be payable as it's part of your teachers' pension.

The new flat rate pension had been rumoured to have a deduction of up to £40pw depending on how long you were contracted out. In other words bringing it back down to basic level.

Of course this is all rumours.

whitesatin

It is rather confusing. I worked for a while before teaching and my state pension forecast said I would get a bit more than the basic one. Not a lot though. I understand that it will, somehow, affect my teachers' pension scheme income but, as yet, haven't really gone into it. I also understand that my tax will all come off the teaching pension as the state pension isn't paid taxed.

It's a case of wait and see what I get.

My husband has a pension from when he retired two years ago, aged 51, so we should be ok. He has a long wait to get his state pension, LOL.

Compared to many, we are fine for the moment.

jem16

whitesatin wrote: »

I understand that it will, somehow, affect my teachers' pension scheme income but, as yet, haven't really gone into it.

Nothing will affect the pension you get from the Teachers' Pension scheme.

I also understand that my tax will all come off the teaching pension as the state pension isn't paid taxed.

Yes your tax code will be lowered to take into account what you get from your state pension so you will pay more tax on it.

zagfles

p00hsticks wrote: »

I think what zagfles is getting at is that many of those who are already getting state pension - which I believe is currently around £107 - have been getting it since they they were 60 (for women) or 65 (for men).

There have been complaints from some of this section of society that they would be unfairly treated by (on current suggestions) not being eligible for any new £140 flat rate pension that might be introduced in the future, despite the fact that those who will be eligible will have to wait until they are 66, 67, 68 or older before they receive it, and are therefore probably no better off over the lifetime of the pension.

Yes, plus those already retired may have SERPS at a much more favourable rate than people now get SERPS/S2P. There are swings and roundabouts with the proposed new scheme, but I have read people whinging who have been paid the basic state pension since they were 60 whinging it's not fair that someone else might get a bit more who can't claim their pension till 67/68!!

zagfles

jem16 wrote: »

How did you manage to accumulate £170 SP on top of your Teachers' Pension? Presumably either by not teaching your whole working life or by inheriting some spousal additional pension.

To make it clear, for teachers (and any other person who has been contracted out for all of their working life), only the Basic State pension would be paid which is currently £107.45. No SERPS/S2P would be payable as it's part of your teachers' pension.

This isn't necessarily true, if you earn under about £33k now (which most part-time teachers would), you accrue second state pension even if you are contracted out.

Also prior to about 1997 a contracted out deduction is applied to the additional pension which is usually about the same as the SERPS element, but it can vary particularly if you leave the scheme before retirement.

The new flat rate pension had been rumoured to have a deduction of up to £40pw depending on how long you were contracted out. In other words bringing it back down to basic level.

Of course this is all rumours.

I don't think it's rumours at all, it's pretty certain. They will have to apply a contracted out deduction where people have had the NI rebates which they've been able to invest in another scheme, or as part of of a final salary scheme. Otherwise it would be incredibly unfair on those who didn't contract out.