Why do we pay council workers Pension ???

Silvertabby

To give some context to this, a family member worked in local government for 30 years, when she retired she was earning about 25 k. Her pension is around 650 per month after Tax. its decent but not enormous.

However the new scheme has allowed another relative to build up an annual pension of £3000 per annum after just six years on a similar wage. The new scheme which is supposed to save money seems far more generous and I think it will build up problems for the future.

The CARE scheme will indeed give a better return for some people - ie, those who stay in the same job, on the same pay scale, for the whole of their careers.

Those who will miss out the most will be the apprentice/office junior who works their way up to senior manager.

Teaandscones

longleggedhair wrote: »

To give some context to this, a family member worked in local government for 30 years, when she retired she was earning about 25 k. Her pension is around 650 per month after Tax. its decent but not enormous.

However the new scheme has allowed another relative to build up an annual pension of £3000 per annum after just six years on a similar wage. The new scheme which is supposed to save money seems far more generous and I think it will build up problems for the future.

The new scheme is at State Pension Age rather than age 60 (which was the case under the old scheme for many people), but it is based on 1/49ths rather than 1/80ths. I don't believe the current accrual rate can last, but there is a mechanism for this to be reviewed on a regular basis, so I would expect the accrual rate to increase from April 2019 onwards.

kidmugsy

Silvertabby wrote: »

the bulk of our pensions are from our joint 50+ years of service in the Armed Forces. We made our choices, you made yours.

I'm not arguing with someone who knows how to use a machine gun.

Silvertabby

“ the bulk of our pensions are from our joint 50+ years of service in the Armed Forces. We made our choices, you made yours.
Originally posted by Silvertabby ”
I'm not arguing with someone who knows how to use a machine gun.

No machine gun - just the SA80 rifle and a pistol!;)

BobQ

Teaandscones wrote: »

The new scheme is at State Pension Age rather than age 60 (which was the case under the old scheme for many people), but it is based on 1/49ths rather than 1/80ths. I don't believe the current accrual rate can last, but there is a mechanism for this to be reviewed on a regular basis, so I would expect the accrual rate to increase from April 2019 onwards.

Yes but you are not comparing like with like.

Under the old scheme someone left with a pension based on 1/80 of their FS multiplied by the years worked. So if they started work earning say 15000 and got pay rises that took them to a FS of 25000 it did not matter what they earned in previous years before they retired, their pension would be 25000/80 multiplied by the years worked

Under the new scheme if they started at 15000 in year 1 the pension from year 1 would be 15000/49. If the next year they were paid 15500, that year would be 15500/49.

Now it is a little more complicated than this but the principle is that in each year you earn a bit of pension based on your current salary so matches career average earnings.

The CARE pension is not going to better a FS pension over a comparable period ending at 60 in most cases. But in some cases it may better. For example for someone whose salary stays the same and they work longer.

The question is whether someone with a manual job like say a catering assistant, or park keeper is still going to be in the public sector in the long term and if they are will they still be capable of working until they are 70.

I agree that the LGPS will change although its more likely the contribution rate will increase rather than the accrual rate fall. The strategy will be to price the lower paid out of the scheme and into a DC scheme with lower contributions.

molerat

Silvertabby wrote: »

No machine gun - just the SA80 rifle and a pistol!;)

What ! No Sterling SMG , L1A1 SLR, Lee Enfield .303 (and converted to .22) or Bren Gun ?

Cash-Cows

Teaandscones wrote: »

The new scheme is at State Pension Age rather than age 60 (which was the case under the old scheme for many people), but it is based on 1/49ths rather than 1/80ths. I don't believe the current accrual rate can last, but there is a mechanism for this to be reviewed on a regular basis, so I would expect the accrual rate to increase from April 2019 onwards.

When it was an 80th there was also a tax free lump sum. Now with the 49th there is no lump sum. You can buy the lump sum back and I seemed to recall that it works out approximately the same as the old 80th scheme if you do.

Silvertabby

“ No machine gun - just the SA80 rifle and a pistol!;)
Originally posted by Silvertabby ”
What ! No Sterling SMG , L1A1 SLR, Lee Enfield .303 (and converted to .22) or Bren Gun ? Posted by molerat

You're right - Sterling SMG (Smudge) when we girlies became combatant /weapon trained in the early 1980s - but I didn't count that as a machine gun as we were only allowed to fire it single shot! I did try the SLR but, as I'm only a little over 5 foot tall, the stock was too long to fit into my shoulder. The .303 was just a little before my time. When we converted from the Sterling to the SA80, I was told that ladies like me (hint: I'll never fall flat on my face!) had an unfair advantage over the males when firing prone - because I had my own built-in supports. You needed a very good sense of humour to be a female in the Armed Forces before PC kicked in! :rotfl:

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GunJack

silvertabby - what with molerat's 15Sqn badge, you, him and me ought to start a MSE sub-group

Silvertabby

silvertabby - what with molerat's 15Sqn badge, you, him and me ought to start a MSE sub-group

Happy memories - what did you do? I was Pers Admin.

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