Employer is offering me my pension?!!

redbuzzard

zygurat789 wrote: »

So, what is good for the employee is bad for the employer. Unfortunately what is bad for the employer could also be bad for the employee, culminating in closure and redundancy all due to excessive employee costs of pensions.

Up to a point, Lord Copper. This is a prisoners' dilemma. What you want is everybody else to give up their pension too, or giving up yours makes no difference, even supposing that the employer is strapped, not just trying to save money.

And there's no such thing as a secure job, whether the DB scheme closes or not. Mine closed in 2010 (no choice given) and I was made redundant in 2012.

Linton

I agree with the general sentiment here - you are probably losing out on the deal. And the situation will be worse if you and your colleagues simply regard it as extra pay to be spent now, as I fear most will.

There is also the risk that your employer can easily steadily erode this "pay rise" over future years by paying increments lower than they would otherwise have been.

In your position I would seriously consider paying the extra 3%, at the least I would put the whole pay increment into a pension.

redbuzzard

Linton wrote: »

There is also the risk that your employer can easily steadily erode this "pay rise" over future years by paying increments lower than they would otherwise have been.

Excellent point. Do you (the OP) think that 13% premium will be maintained indefinitely as a margin over the market rate for your job?

big_thumper

Some excellent posts here guys, I thank you all very much for your input and advice.

I was leaning towards removing myself from the scheme, and receiving the immediate payrise, I am certainly thinking otherwise now though.

Lots to think about, I have another 2 weeks to make my decision so I best put my thinking cap on.

No union here unfortunatly, and no other TUPED members where I work so i'm kinda on my own in making this decision. Thanks again for you input though, im very glad I posted now!

Perelandra

How much of your salary did you used to pay in, and (asusming your employer offers a pension scheme), what is the maximum they will contribute if you do come off the FS pension?

This may change the attractiveness of the offer, but overall I would agree with previous posters that it's probably in your best interests to pay the 3%.