Public Sector Pension Reform In Trouble?

Dazed_and_confused

Interesting.

Could easily see the CARE scheme being preferable to final salary for some people if given a choice.

But equally others would want to be able to retire at 65 and get the pension without reduction even if it is less than it might otherwise be.

:think::think:

GunJack

....and this is where it's going to be very individual for scheme members and will be even more of a nightmare to work out... things like overtime premiums ( in PCSPS Classic) would count as pensionable, how likely are individuals going to be doing overtime as they age (in a CARE scheme), etc., etc.,....

What I do know is that I'm glad my deferred CS pension is all in Classic so mine'll be simple

Tromking

Another recent High Court ruling that may have ramifications for public sector workers and their pensions.

https://www.pensionsage.com/pa/High-Court-deems-firefighters-overtime-as-pensionable.php

westv

I'm sure my CS employed wife will be waiting with interest to see what happens.
28 years in Classic with a NRA of 60
Since 2015 in Alpha with a NRA of 67.

nigelbb

Tromking wrote: »

Another recent High Court ruling that may have ramifications for public sector workers and their pensions.

https://www.pensionsage.com/pa/High-Court-deems-firefighters-overtime-as-pensionable.php

That’s interesting. I wonder if that has implications for the NHS pension scheme where overtime is specifically excluded from pensionable pay even for employees who are contracted to work additional hours (up to 25-30% more in some cases).

nigelbb

CruisingSaver wrote: »

I work for the NHS and was too far away from retirement to be offered transitional protection.

I've worked through my numbers and the 2008 section of the scheme would be the most beneficial for me and had I been offered a choice I would have remained in that section rather than be dumped in the 2015 section.

I joined the NHS pension scheme in 2014 & despite being within five years of retirement did not qualify for full or tapered protection so was transferred from the 2008 scheme with 1/60 accrual to the 2015 scheme at 1/54 accrual so I'm actually better off with the newer scheme & intend to work for a few more years yet.

crv1963

I have protection and am still in the 95 scheme (Special class), but regularly work 36 hours a month overtime, if overtime unavailable I then work Bank. So I'm contracted for a 37.5 hour week or 150 hours over a month but have worked 186 hours or more per month for the past 5 years- for the 10 years before that was in management so no overtime available.

I take home with shift allowance more per month as a Band 6 than I did as a Band 8a or seconded 8b! Even with current overtime I work considerably less hours than I did as a manager.

Now if overtime/ Bank becomes pensionable then retirement moves even closer!

Watching events very carefully, as are some of my colleagues.

GunJack

My main concern (for others still involved, rather than myself as none of these changes wll affect me) is how long they're all going to take to get fully sorted out.

The longer they all take, the more scope there s for members of these schemes retiring on less than they should be, and some will unfortunately pass away during ths period before it's all sorted

Durban

Silvertabby wrote: »

Exactly. However, be careful what you wish for.

Pre 2014 Final salary. 1/60th accrual rate with no automatic lump sum. Pensionable pay used in calculation is basic salary - no non-contractual extras/overtime.

Post 2014 CARE. 1/49th accrual (again, no automatic lump sum) plus CPI annual revaluation. Pensionable pay used is everything - including non-contractual overtime etc etc.

Someone with a lot of extras/non contractual overtime may well find that the CARE pension taken at 65 (with a 2 year early payment reduction) will still be more than a final salary pension taken at 65 with no reductions.

Yes, I do a lot of overtime and my CARE pension works out better for me because of that

buyhighselllow

I'm was NHS 95 scheme forced onto 2015 4 years ago obviously. I am planning on escaping at 55 come what may but wander if the decision yesterday may be favourable for me and open up the prospect of going a year earlier for a similar deal ? ( NB I will still have to work to support myself adequately regardless but will have at least escaped the dungeon )