Final salary question

kidmugsy

amstel2 wrote: »

Hope that makes sense & of course !!!! Turpin at no.11 might change that.

In light of the prudish (American?) censor on MSE, you'd better call him Rich Turpin in future; or Duck Turpin.

[Deleted User]

amstel2 wrote: »

Does the two thirds apply if you have two final salary pensions across two employers (one frozen with prev private sector employer goes up annually with RPI 16 years service in it) & my current civil service final salary pension (earliest retirement age without reduction will equate to 24 years) so bang on the 40 years.

I'm in a similar situation - 16 years in a deferred Final salary scheme and just over 20 in my current FS. Out of interest, a few months ago I asked for an illustration of what my deferred pension was now worth as it was obviously based on the salary earned when I left. Allowing for RPI increases over the years, not too bad and well worth having when I'm 60 .... :dance:

GunJack

greenglide wrote: »

I always thought that schemes tended to aim at 1/2 salary rather than 2/3.

it depends on the scheme... CS Classic was aimed at 1/2 salary (40/80ths max) pension plus automatic ls of 3x pension. The later replacement was aimed at 2/3 salary (40/60ths) but no auto ls, so you had to commute some pension to get a lump sum, funnily taking the pension down to about half salary for a similar (might have been slightly higher) ls than if you'd have been in classic, but the employee contribution was bigger (1.5% v 3.5% IIRC). At the time, I seem to remember a lot of private sector schemes were already 60ths with no auto ls.

jonesMUFCforever

lovinituk wrote: »

Some final salary pensions are reduced at state pension age by the amount of the state pension, so you don't end up receiving any more.

Not sure which bank you have your frozen pension with but do you get an annual pension statement?
If so it will tell what the deduction is when you are old enough to claim the state pension.
It will be nowhere near the full state pension figure so you will be better off then.

molerat

amstel2 wrote: »

My understanding of that is that it's do with tax. As state pension is taxable & if you are over the personal threshold. Then the extra SP income will also generate extra tax. They do not take tax at source out of SP instead it gets added to the occupational pension whihc of course goes down but you still have more because of the SP.

Hope that makes sense & of course !!!! Turpin at no.11 might change that.

No, some old pensions - very popular within the financial sector - had pension schemes that actually decreased payment at SP age.

amstel2

molerat wrote: »

No, some old pensions - very popular within the financial sector - had pension schemes that actually decreased payment at SP age.

Contacted the helpline for my deferred pension. They have confirmed there will be no reduction when my state pension kicks in.

The only time a reduction is made is if I take up the levelling option. I can take that option even at 55 but am not sure if that’s a good idea with the un-certainty on state pension ages. I already have enough NI contributions for the basic state pension so the next few years will be paying the full NI for the flat rate one (my current state pension age is 67).

Does anybody know if the Civil Service (classic) pension goes down when the state pension is payable.

Thanks

GunJack

amstel2 wrote: »

Does anybody know if the Civil Service (classic) pension goes down when the state pension is payable.

Thanks

No it doesn't

(I have 20 yrs deferred in CS Classic )

oh, and if your CS pension age is 60, there's no benefit in not taking it at 60, you just lose the money. So don't defer taking it when you hit the right age....

lovinituk

Checked my deferred final salary pension and it does decrease on receipt of the state pension. However it says it will only decrease by no more than 50% of the state pension so I will in fact be slightly better off! Although if they keep moving the goal posts, I will be in my 90's by then!

amstel2

GunJack wrote: »

No it doesn't

(I have 20 yrs deferred in CS Classic )

oh, and if your CS pension age is 60, there's no benefit in not taking it at 60, you just lose the money. So don't defer taking it when you hit the right age....

I intend to retire at 60 totally fed up with the CS & the contanst changes. Counting down the next 5 years until bale out.

maxie014

Lad just retired from work last night,37 years in a 1/60th final salary was a nice just over six figure lump sum and a deferred pension till he is 65 then drops by a third which the state pension takes up.
They are reducing it to 1/90th though or hopefully 1/80th.Ive got 27 years in at 1/60th need to top it up with avc for the next ten years.