New State Pension Guide

minty777

Silvertabby wrote: »

Minty - the first 10 years would be calculated on a 1/60th basis, and the remainder at 1/75th. There are laws in place to prevent the retrospective reduction of final salary pension benefits already 'banked'.

Was the accrual rate reduced in order to keep your scheme financially viable?

I don't remember those exact words silvertabby.As for the accrual rate i just imagined they would work out the average so the accrual rate would be something like 1/68th.Not that that is the correct average as i would'nt know how to work it out.

Silvertabby

I don't remember those exact words silvertabby.As for the accrual rate i just imagined they would work out the average so the accrual rate would be something like 1/68th.Not that that is the correct average as i would'nt know how to work it out.

No, your service would be split into the two accrual rates.

In the case of the LGPS, the accrual rates are/were:

Up to 2008 = 1/80th plus automatic lump sum of 3 times pension (final salary)

2008 to 2014 = 1/60th with no automatic lump sum (final salary)

2014 onwards = 1/49th with no automatic lump sum (career average).

So, someone who joined the LGPS before 2008 would have their benefits calculated on 3 different accrual rates. The LGPS has maintained the final salary link beyond the switch to career average so, in the case of someone who left today, their final salary benefits up to 2014 would be calculated on their final pensionable pay (or best previous year if applicable).

Do you have a pension scheme guide? That should explain how the change in the accrual rate affects your pension.

minty777

Silvertabby wrote: »

No, your service would be split into the two accrual rates.

In the case of the LGPS, the accrual rates are/were:

Up to 2008 = 1/80th plus automatic lump sum of 3 times pension (final salary)

2008 to 2014 = 1/60th with no automatic lump sum (final salary)

2014 onwards = 1/49th with no automatic lump sum (career average).

So, someone who joined the LGPS before 2008 would have their benefits calculated on 3 different accrual rates. The LGPS has maintained the final salary link beyond the switch to career average so, in the case of someone who left today, their final salary benefits up to 2014 would be calculated on their final pensionable pay (or best previous year if applicable).

Do you have a pension scheme guide? That should explain how the change in the accrual rate affects your pension.

Very helpfull thank you

minty777

Silvertabby wrote: »

No, your service would be split into the two accrual rates.

In the case of the LGPS, the accrual rates are/were:

Up to 2008 = 1/80th plus automatic lump sum of 3 times pension (final salary)

2008 to 2014 = 1/60th with no automatic lump sum (final salary)

2014 onwards = 1/49th with no automatic lump sum (career average)

Hi Silvertabby

How would this work out as in your example?

Final salary £20k and 20 years service.

10 years at 1/60 accrual

10 years at 1/75 accrual

Silvertabby

Hi Silvertabby

How would this work out as in your example?

Final salary £20k and 20 years service.

10 years at 1/60 accrual

10 years at 1/75 accrual

Hi - the exact calculation would depend on your scheme rules, but the LGPS would work it out like this:

1/60th = £20K / 60 x 10 = £3333.33 pension per annum

1/75th = £20K / 75 x 10 = £2666.67 pension per annum

Total pension per annum = £6K

You need to check that your scheme 'ran on' your benefits at the accrual rate change, otherwise your 1/60th benefits may be calculated on your salary as at the date of change, and not your date of leaving.

frank777

The new State Pension - I'll keep it simple I retire next year. If I decide pay for voluntary class 3 NI for 2016/17 do I need to get them before the end of this tax year to get the extra increased weekly starting amount of around £4.45 for my State Pension due July 2017. I haven't seen this question asked before, maybe it's too early to be asking?

Also is this extra payment backdated if I pay for the NI say 12 months after I draw my State Pension

rose28454

My husband is retiring next week and has just had a letter saying his pension will be £121.00 a week. The letter says this is the safe amount as they dont have access to his NI records at present. He has just stopped receiving Carers allowance for his dad who dies recently and I presume thats the reason for the NI thing. He gets a pension from his work ( he was a postman for 33 years ) so I presume he was contracted out as he was paying into a private pension.
I wonder if anyone knows if that amount sounds right as it seems a bit low.

Silvertabby

My husband is retiring next week and has just had a letter saying his pension will be £121.00 a week. The letter says this is the safe amount as they dont have access to his NI records at present. He has just stopped receiving Carers allowance for his dad who dies recently and I presume thats the reason for the NI thing. He gets a pension from his work ( he was a postman for 33 years ) so I presume he was contracted out as he was paying into a private pension.
I wonder if anyone knows if that amount sounds right as it seems a bit low.

Sounds like my may get a little more once his NI record is updated but, as his Post Office pension was contracted out, he won't get the full £155.

xylophone

Are you saying that your husband will be 65 next week and has claimed his state pension?

When did he start his employment with Royal Mail?

Does he have at least 35 years paid or credited NI?

xylophone

The new State Pension - I'll keep it simple

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

What is your starting amount?