Clueless on Pensions - Civil Service Alpha or Partnership?

CEliz

Will I still receive a state pension on top of this?

CEliz

JoeCrystal wrote: »

Because that's how the Civil Service Alpha work atm??? For every year of service, you will get 2.32% of your salary for that year. 2.32% of £20,246 is £469.70 per year. Assuming your pension for each year get adjusted in line with prices at the same rate as your pay, then 41/43.1 works out as 95% so therefore, it is £19,259 in real money but that is most straightforward version. You will get pay rise and get promotions and so on and you may not stay for 41 years.

Each year, you build up 2.32% of the salary in that year and these years get revalued and get built up.

I literally don't even understand what you just said. So I am only given £469.70 per year???

JoeCrystal

CEliz wrote: »

I literally don't even understand what you just said. So I am only given £469.70 per year???

Okay, think in term of blocks. Each block consist of 2.32% of your salary which is £20,246 so £469.70 per year. In the second year, you salary went up to £21,000 so your second block is £487.20. In the third year, you done a brilliant job and was given a promotion so you was on £35,000 salary, that block is £812.

So first is £469.70, second is £487.20 and third is £812. If you adds all the blocks together, this adds up to £1,768.90 pension already. (ignoring the revaluation of each block by prices)) if you got 41 blocks and assuming there is no inflation or payrise for the entire period then 41 blocks of £469.70 adds up to £19,257.70

And yes you will get state pension as well. That is entirely separate issue.

I really hope that make sense.

CEliz

JoeCrystal wrote: »

Okay, think in term of blocks. Each block consist of 2.32% of your salary which is £20,246 so £469.70 per year. In the second year, you salary went up to £21,000 so your second block is £487.20. In the third year, you done a brilliant job and was given a promotion so you was on £35,000 salary, that block is £812.

So first is £469.70, second is £487.20 and third is £812. If you adds all the blocks together, this adds up to £1,768.90 pension already. (ignoring the revaluation of each block by prices)) if you got 41 blocks and assuming there is no inflation or payrise for the entire period then 41 blocks of £469.70 adds up to £19,257.70

And yes you will get state pension as well. That is entirely separate issue.

I really hope that make sense.

As this is the public sector with no real guarantee of regular pay rises let alone ever reaching £35,000 - I am more hoping to get a realistic picture of which would be the best scheme for me based on what I earn NOW. Any pay rise will just be a bonus to add to that.

And it still isn't clear - would that £19,257 be paid per YEAR, yes or no?

They really should teach about pensions in schools

CEliz

Also, for the record - on the Alpha scheme my employer isn't contributing ANYTHING?

Owen1991

year 1 469.7 is added
year 2 469.7 is added
and so on for 41 years, 41 x £469.7 = £19,259 which is what you'll get every year until you die at 68. (+ a state pension on top of this).

Say you worked 20 years you'd get 20 x £469.7 = £9394 a year until you die at 68

Thats assuming no pay rises, which would increase that further.

JoeCrystal

CEliz wrote: »

As this is the public sector with no real guarantee of regular pay rises let alone ever reaching £35,000 - I am more hoping to get a realistic picture of which would be the best scheme for me based on what I earn NOW. Any pay rise will just be a bonus to add to that.

And it still isn't clear - would that £19,257 be paid per YEAR, yes or no?

They really should teach about pensions in schools

The best pension scheme for you in term of value is CS Alpha. There is absolutely no contest. Yes, PER YEAR.

TheShape

CEliz wrote: »

And it still isn't clear - would that £19,257 be paid per YEAR, yes or no?

I can't just post Yes, but Yes!

p00hsticks

CEliz wrote: »

Also, for the record - on the Alpha scheme my employer isn't contributing ANYTHING?

On the Alpha scheme, your employer is promising to pay you a certain sum every year when you retire. That will cost them far more than your contribution, but it's not possible to say exactly how much they will need to put in to meet that commitment.

JoeCrystal

CEliz wrote: »

Also, for the record - on the Alpha scheme my employer isn't contributing ANYTHING?

PCSPS and Alpha are unfunded schemes and the cash required to meet the payment of pension benefits is paid from public funds provided by Parliament. Members contribute on a ‘pay-as-you-go’ basis, with these contributions (along with those made by employers) being credited to the Exchequer.

Fun fact, only 1% of the entire active Civil Service members pay into Partnership.