Pension refund LGPS

taktikback

Maybe they are all just following standard procedure and it's taking time for your opt out to work through the system. Otherwise in 10 years time you'll come back with a mis-selling claim based on their failure to follow due process

taktikback

hyubh wrote: »

Can't you just give it a rest? Your witterings have nothing to do with the answering the OP's question. As an aside, and without wishing to deny employer rates are high, your percentages are also likely BS (think now: what could possibly influence employer contribution rates in a final salary scheme? How does this compare with the likely profile of the OP? And what's happening in 2014, LGPS-wise?).

Actually, my wife is a School Business Manager and works closely with the actuaries for Academy conversion. The last figures I saw for the our local LGPS were 21% but I believe the average is nearer 19-20%. In 2014 LGPS goes to career average and the average is likely to fall to around 15% -but then -what do I know...

BobQ

hyubh wrote: »

Can't you just give it a rest? Your witterings have nothing to do with the answering the OP's question. As an aside, and without wishing to deny employer rates are high, your percentages are also likely BS (think now: what could possibly influence employer contribution rates in a final salary scheme? How does this compare with the likely profile of the OP? And what's happening in 2014, LGPS-wise?).

Is it really any of your business what others post to be helpful. If the OP wants to give up a substantial pension benefit its his business but pointing out that is unwise is quite reasonable without abusive remarks. And post 2014 its still a substantial loss to the employee who opts out.

hyubh

BobQ wrote: »

Is it really any of your business what others post to be helpful. If the OP wants to give up a substantial pension benefit its his business but pointing out that is unwise is quite reasonable without abusive remarks.

'Abusive remarks'? The only one being 'abusive' is taktikback who refuses to answer the question asked, and instead insults the OP's intelligence.

And post 2014 its still a substantial loss to the employee who opts out.

You completely missed my point - I was disagreeing with taktikback's smart alec comment about employer contribution rates, not making a general point about employee benefits. On average, the sort of staff who opt out are lower paid part timers who don't enjoy much progression in their pay over the course of their working lives. As such, employer rates solely related to such people who don't opt out are in fact lower than the range quoted by taktikback.

hyubh

taktikback wrote: »

Actually, my wife is a School Business Manager and works closely with the actuaries for Academy conversion. The last figures I saw for the our local LGPS were 21% but I believe the average is nearer 19-20%. In 2014 LGPS goes to career average and the average is likely to fall to around 15% -but then -what do I know...

Not much? It is pointless airly quoting an average 'nearer 19-20%', since the rates vary so much, at least so long as a grouping mechanism isn't in place. Actual example: same LGPS fund, same private contractor (school catering), same actuary, same assumptions used, and for employer rates determined only two months apart, but for two sets of employees who TUPE'd over separately: the employer rate for the first is 26 point something, the rate for the second 13 point something.

Over time, career average should level such differences in the direction of the lower bound, but it will take a while to do so. Further, the sort of employee profile I would assume the OP fits (I may be wrong of course) squares more with the 13 point something than the 26 point something. Lots of previous service and/or a larger salary (given higher earners tend to have much greater pay progression over time) are what generate the eye watering rates for a final salary scheme, not lower paid part timers who have a habit of opting out now and again.

taktikback

So your assumption is that the op is at the lowest end of the scale and is a part timer with a habit of "opting out now and again". Possibly true -but not mentioned anywhere in their postings?

in which case you calculate that they would be giving up an employer contribution of 13% -which you then effectively dismiss as insignificant.

OK - so someone earning say £12k per year for, lets say 20 years enrolled (because you are suggesting that they are unlikely to be reliable enough to stay enrolled for the full duration - slightly demeaning in my view ) at 1/49th accrual - I make that an indexed linked pension of £4897 - which would probably require a pot of around £100,000 on the open market. Not a bad return in my book.

How have I been "abusive" in not answering the ops original question?. If you want me (or anyone else for that matter) to take you seriously, then perhaps a slightly more conciliatory approach would be helpful.