Pension "clawback"

SJG1

As a member of the Railway Pension Scheme (defined benefit) my actual final salary amount is reduced by 1.5 x the basic state pension then worked out at 1/60 per year on the remainder for each year of service. The idea being the basic state pension + my railway pension after 40 years will provide 2/3 of my final salary. I have been trying to find out via the Unions/Railway Pension Scheme how the new single tier pension proposed will have an effect on this.

At the moment nobody knows or is unwilling to tell me! Talks on going apparently.

I'm just wondering if anybody else out there works for a company with a similar scheme and what there company proposes in this situation.

xylophone

Barclays and Midland HSBC have been mentioned in other posts -

https://forums.moneysavingexpert.com/discussion/comment/68226793#Comment_68226793

https://forums.moneysavingexpert.com/discussion/4736856


http://www.theyworkforyou.com/wms/?id=2012-03-26a.99WS.0

connected with later state pension age - presumably other legislative changes could be made to cover new state pension?

Some schemes simply abolished the practice http://www.thisismoney.co.uk/money/news/article-1573250/Pension-package-cheers-postmen.html

SJG1

Thanks xylophone for the links. As mentioned in various articles "clawback" has the biggest effect on low paid workers and am sorry to say that the government motion back in the early 2000s didn't see this abolished/frozen in db schemes.

It will be interesting to see what will happen when the basic state pension finishes and is replaced by the single tier pension. As my scheme rules deducts 1.5 times the basic state pension from my final salary on working out the level to be paid. To my mind if there is no basic state pension 1.5 x 0 = 0 so no deduction from my final salary. I doubt this will be the case though one can live in hope.