value of public sector pension

w00519772

hyubh wrote: »

Hmm... this will the same LGPS that you freely choose to opt out of prior to the TUPE, right?



So you're not actually mulling up another job, but trying to take the mickey and rip off your currently employer instead...? Insofar as you're looking for 200 quid compensation or so for a payroll cockup, I'm all in you're favour; if however you're trying to retrospectively pretend you valued LGPS membership more than you actually did and are therefore seeking to speciously argue you were bullied out of it, I hope you fail.

That is a bit harsh. I use to take things for granted in the past. I am more finance savvy these days and just trying to learn from my mistakes. I decided to accept the new contract and just wandering if this was a mistake I made at the time.

With reference to my other archived question I decided not to persue the £200 compensation for the payroll mistake (which the Pension Advisory Group supported me on) because I did not want to "raise my head above the water" too much.

jackyann

Andy is right - different parts of the public sector have different schemes. None are as good as they were, you really have to do some very careful sums.

Thrugelmir

Andy_L wrote: »

Which one is on offer, there's no such thing as the public sector scheme, especially following the latest round of changes.

Possible to be a private limited company whose shareholders are all public sector entities. To fund the pension scheme (which mirrors the Civil Service scheme) the employer contributes 26.3% in order to fund the benefits.

w00519772

Thrugelmir wrote: »

Possible to be a private limited company whose shareholders are all public sector entities. To fund the pension scheme (which mirrors the Civil Service scheme) the employer contributes 26.3% in order to fund the benefits.

Is that 26.3% per month? That is huge.

kidmugsy

marlot wrote: »

I contribute 7.35%, and the government the rest.

Nope, it's the TAXPAYER, not the government.

atush

w00519772 wrote: »

That is a bit harsh. I use to take things for granted in the past. I am more finance savvy these days and just trying to learn from my mistakes. I decided to accept the new contract and just wandering if this was a mistake I made at the time.

With reference to my other archived question I decided not to persue the £200 compensation for the payroll mistake (which the Pension Advisory Group supported me on) because I did not want to "raise my head above the water" too much.

I am afraid you made a big mistake. 3K wasn't nearly enough of a bump to give up LGPS.

BeansOnToast_2

232607 wrote: »

If this helps...
I was in a private DB scheme (1/66th) and my company detailed their contribution to my pension on the pay slips. Not sure why they did this because it seemed fairly irrelevant to me.
Anyway this worked out at 27.5% which when combined with my 5% meant that nearly a 1/3rd of my salary was needed to fund the DB. I would certainly expect a public DB scheme to need this sort of funding if not more.

Regards.

This has prompted me to check my latest pay-slip. I'm in a private sector 1/60th DB scheme. My contribution is 9% of pensionable salary. My employer's is 21%.

w00519772

BeansOnToast wrote: »

This has prompted me to check my latest pay-slip. I'm in a private sector 1/60th DB scheme. My contribution is 9% of pensionable salary. My employer's is 21%.

What would have been enough? My salary at the time was about 32,000. I have done this calculation:

(121/100)*32,000 = 38,720
38,720-32,000=6,720

Therefore, is the answer about 6,720?

Freecall

w00519772 wrote: »

Is that 26.3% per month? That is huge.

26.3% per month, per year or per decade, what's the difference?

It's still 26.3%

chucknorris

w00519772 wrote: »

Say you were offered two jobs. One with a salary of 45k and the other with a salary of 50k. You liked both jobs the same.

Both had pension schemes. One were the employer makes 5% contributions (50k job) and the other being the public sector scheme.

The total package of the 50k job would be: £52500. What would the total benefits be of the 45k job with the public sector pension scheme?

I value my public sector pension by calculating an equivalent pension pot, then used to compare it to buying an annuity, (which index linked would be worth about 3.3%) but now that you can draw down, I use a multiplier of 27 (3.7%).

So to answer your question, I would value them as follows:

Private sector:
£50k + 5% = £52.5k

Public sector:
£45k less 10.1% (my contribution to pension) = £40.455
Add pension:
These will very depending on the scheme that you are in and your age, I still accrue 1/60th of salary:
£45k/60 = £750, £750 x 27 (the multiplier from above) = £20,250 (pension pot equivalent)
£20, 250 (pension) + £40.455 (salary net of pension contribution) = £60, 705.

Private sector = £52,500
Public sector = £60,705