Pension changes 2016

SJG1

atush wrote: »

there are a think 2 bits of the nwew pension, basic rate, and higher total flat rate (for those w/enough years or who made S2P contribs before 2016
)

So would imagine it will be minus the basic, but you'd need to ask your union or the administrators.

Lets hope so. The last time I contacted our pension office they didn't know either!!

webbit

SJG1 wrote: »

Also have to add they take the basic state pension into account when working out our final pension. It is x/60ths minus the basic state pension. I know with Network Rail it is minus 1.5 x the basic state pension. So with a big jump in the state pension under the new system will we see a big reduction in our final salary pension? Yet to be seen what happens there.

Good point that, that will have to be taken into account with probably a full renegotiation of the whole pension benefits.

greenglide

SJG1 wrote: »

Also have to add they take the basic state pension into account when working out our final pension. It is x/60ths minus the basic state pension. I know with Network Rail it is minus 1.5 x the basic state pension. So with a big jump in the state pension under the new system will we see a big reduction in our final salary pension? Yet to be seen what happens there.

But technically there will no longer be a "basic state pension" any more.

There are several DB schemes that have a deduction based on the basic SP which, presumably, will require a change or clarification of the scheme rules before 6/4/2016?

My DB scheme is based on 1/70s but the pensionable salary is the actually salary less the lower earnings limit - allegedly to take into account a figure of around the basic state pension. This scheme isn't affected but if the lower earnings limited was to be scrapped then changes would, presumably, be needed. If the lower earnings limit were to be significantly reduced presumably the employer might have something to say!

xylophone

Clawback, integration, abatement.....
and apparently not yet ended despite campaigns against it?

http://www.web40571.clarahost.co.uk/archive/saga/2000_and_before/990202.htm

http://hansard.millbanksystems.com/commons/2004/jul/20/pensions-clawbacks

What exactly does your staff handbook say about how clawback operates in your case?

Kenkoskavic

I have read quite a bit about the new rules coming in to effect next month. I received a letter from my provider with a balance figure of £58,000. Will this be the actual figure or would this be increased assuming the amount you may get if you live longer and take a monthly settlement? I can't find any answers and getting pretty hacked off looking! Does anyone out there know the answer?

Thanks.

Froglet

Hi and welcome.


If you post this question as a new topic in this forum you may get more answers.Or you could always contact your provider.I did that last week (Aviva) and they were very helpful.

SJG1

greenglide wrote: »

But technically there will no longer be a "basic state pension" any more.

There are several DB schemes that have a deduction based on the basic SP which, presumably, will require a change or clarification of the scheme rules before 6/4/2016?

My DB scheme is based on 1/70s but the pensionable salary is the actually salary less the lower earnings limit - allegedly to take into account a figure of around the basic state pension. This scheme isn't affected but if the lower earnings limited was to be scrapped then changes would, presumably, be needed. If the lower earnings limit were to be significantly reduced presumably the employer might have something to say!

Hopefully the union/employers and pension scheme will come up with something palatable to all. Not holding my breath on that one though..

roy_c

SP statement arrived today.
Estimated 6/4/16 may be £143.43
Up to 5/4/14 NI 41 qualifying years.
New SP rules £90.15 Existing SP rules £143.43
SP year I can start taking it is 2024 I retire early with a final salary pension in one year's time.
I know/hope from earlier posts it will be the £143.43 figure.
Just thought I would update.
Thanks
R

jamesd

Yes, it'll start at that £143.43 level plus any inflation increase until the flat rate starts. Also it'll increase a little for the earnings-related portion for any years worked until 6 April 2016, then by 1/35th of the flat rate for each year worked or bought until you get to the maximum flat rate level.