Public sector pay freeze/Inflation calculation

chucknorris

Thrugelmir wrote: »

At the time was doing some contracting work for a pension scheme that was linked to the Civil Service one by analogy. Increase was 1.6%. Tax relief was granted on this. Still wiped the payrise for that year.

My pension contribution was originally 6.4%, and it went up to over 11%, but was later reduced to the current 10.1%. But the TPS is still a fantastic scheme, so I'm not complaining.

Thrugelmir

ukcarper wrote: »

In the company I worked for the pension contributions stayed the same but the scheme change from final salary to life time average before being frozen and future payments change to defined contributions. I was lucky enough to take early retirement on final salary terms but it would probably be beneficial to people still working if contributions increased and final salary was kept.

Public sector schemes even now are undergoing thorough review. Plenty of change in the past decade with more to follow. Sustainability, longevity are all factors impacting the future direction.

ukcarper

Thrugelmir wrote: »

Public sector schemes even now are undergoing thorough review. Plenty of change in the past decade with more to follow. Sustainability, longevity are all factors impacting the future direction.

From experience I think it’s worth paying a bit more to keep final salary pension but I wouldn’t be surprised if the public sector lose theirs but I don’t think it will go without a fight.

Thrugelmir

ukcarper wrote: »

From experience I think it’s worth paying a bit more to keep final salary pension but I wouldn’t be surprised if the public sector lose theirs.

Doubt that the Unions will agree to such a change. Reducing the value of the benefits / increasing employee contributions seem the more likely routes in our lifetimes.

Andy_L

Thrugelmir wrote: »

Doubt that the Unions will agree to such a change. Reducing the value of the benefits / increasing employee contributions seem the more likely routes in our lifetimes.

For the unfunded schemes there's also the disincentive to change of the huge initial cost of changing to DC as you can no longer use the current contributions to fund pensions in payment but will have to pay them as well as invest the current contributions.

ukcarper

Thrugelmir wrote: »

Doubt that the Unions will agree to such a change. Reducing the value of the benefits / increasing employee contributions seem the more likely routes in our lifetimes.

I did alter my post saying it wouldn’t be introduced without a fight but for some reason there doesn’t seem to be much support for public sector workers in respect of their pension.

Silvertabby

“ From experience I think it’s worth paying a bit more to keep final salary pension but I wouldn’t be surprised if the public sector lose theirs.
Originally posted by ukcarper

Public Sector final salary schemes have already gone - they're now career average.

ukcarper

Silvertabby wrote: »

Public Sector final salary schemes have already gone - they're now career average.

Is that true of all of public sector.

chucknorris

Silvertabby wrote: »

Public Sector final salary schemes have already gone - they're now career average.

They are still excellent schemes though, and for some workers (like myself) who come from the private sector and start at a more senior level, the fact that it is 'average' rather than 'final' is virtually irrelevant.

Andy_L

ukcarper wrote: »

Is that true of all of public sector.

AIUI in some schemes those who were close to retirement were allowed to continue accruing pension under the old FS scheme rules. I'm not aware of any that haven't moved everyone else onto CARE, they may be some of the small niche schemes that are but the big ones (NHS, CS, LGPS, Teachers) are CARE only