Company want to end local government pension scheme

Dionysusjones

Thanks for the replies, the vibes in the office is that the £5000 will be accepted although I am still rejecting it and voting for strike action. Some people are scared that they will pull the plug and do it anyway and then miss out on the £5000.


Along with other ex-councils like us there is now talk of redundancies in the near future because of the Government summer budget and with a few others who are over 55yrs old we could apply for voluntary redundancy.
This will be down to cost, am I right in saying that I will be cheaper to let go at nearly 57 and 21yrs service than others who are roughly the same age with 38-40yrs service in the pension fund..

hyubh

Dionysusjones wrote: »

am I right in saying that I will be cheaper to let go at nearly 57 and 21yrs service than others who are roughly the same age with 38-40yrs service in the pension fund.

Probably yes, but you would be expensive enough...!

Or, put another way: if the housing association is seriously looking at a redundancy round for people aged 55-60 next year, then it would be very much in its financial interests for you all to be deferred not active members of the LGPS at that point. Are the colleagues who are keen to take the cash fully aware of that?

Dionysusjones

hyubh


If those who reject the £5000 and don't sign up to leave and The Company don't actually inform the LGPS that they are ending it, does that mean some will still be in it while others are volunteering to be out.
Thanks..

hyubh

Dionysusjones wrote: »

If those who reject the £5000 and don't sign up to leave and The Company don't actually inform the LGPS that they are ending it, does that mean some will still be in it while others are volunteering to be out.

With respect, you're not thinking straight... if everyone decides to voluntarily opt out en masse, then (a) monthly contribution payments to the fund will suddenly cease and (b) the administrator will require leaver details to process the deferred benefits. Conversely, if anyone is still in the scheme then those monthly payments should continue, and if they don't, will be chased up (the fund will have a right to charge interest on late payment, so it's in the employer's own good to be timely).

woolly_wombat

Dionysusjones wrote: »

Along with other ex-councils like us there is now talk of redundancies in the near future because of the Government summer budget and with a few others who are over 55yrs old we could apply for voluntary redundancy.

No wonder the company are so keen to incentivise LGPS members to leave the scheme!

If they can persuade the majority to quit the scheme then it will gave them much more freedom to choose who to 'let go'.

Don't assume that staying in the LGPS will present an opportunity to apply for voluntary redundancy. You could well find that it makes over-55s just too expensive to consider for redundancy if they can find a way round it.