Company pension change

elantan

Hi all,


Having a chat with the OH about pensions ( again)

I've previously mentioned the gossip that goes around in his work, this time we have been reliably ( inside info) informed that there are changes afoot with the company pension,

Many of the "old crowd" ( old contract , of which OH is an employee) have taken their pensions recently, so many are jumping on the bandwagon that talk is rife.

I have explained to my OH that as far as I'm aware if any changes happen to his pension the change takes place from the day the change happens, and any pension accrued remains under the old scheme, it will only be from the new date onwards that will be affected

Am I right ?

He is panicking a bit

quotememiserable

Yes. Earned pension stays earned. The rules in force at the time of earning stay in force. New pension rules commence when the changes come in, so it's rather like having two separate provisions. The only thing that can change which would impact on earnings to date would be change in future indexing from RPI to CPI.

elantan

Thank you I did think this was the case but it's always good to get reassurance

zagfles

quotememiserable wrote: »

Yes. Earned pension stays earned. The rules in force at the time of earning stay in force. New pension rules commence when the changes come in, so it's rather like having two separate provisions. The only thing that can change which would impact on earnings to date would be change in future indexing from RPI to CPI.

Also early and late retirement factors can change with immediate effect.

greenglide

. The only thing that can change which would impact on earnings to date would be change in future indexing from RPI to CPI.

For private sector schemes this would only be if the scheme wording said "inflation" rather than "RPI".

Such schemes, like mine, would surely require legislation to impose such a change without member approval?