Public sector pay freeze/Inflation calculation

Nick_C

The gross salary for my last job was cut in real terms by 15% between 2002 and 2012. I could afford to take the cut, but I saw many good people leaving and going to the private sector.

ukcarper

Andy_L wrote: »

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

Just read unisons website seems everybody has been transferred to CARE but existing accruals will be final salary. Doesn’t seem that bad a deal to me could be a lot worse.

sevenhills

In the recent pay negotiations the lower paid workers will get a larger pay rise, someone earning £8 an hour will get an increase of around 50p, £9 an hour and the pay rise is roughly 25p
Not sure how this will affect someone earning £29,947 in 2013

Tromking

ukcarper wrote: »

Just read unisons website seems everybody has been transferred to CARE but existing accruals will be final salary. Doesn’t seem that bad a deal to me could be a lot worse.

That may not be quite the end of the story.
The Judges recently won a tribunal against the government on age, gender and race discrimination grounds and I believe the FBU are expecting a ruling imminently on Firefighters pensions also.

Thrugelmir

ukcarper wrote: »

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.

Compared to the private sector still an exceptional level of benefit. Often undervalued by people. Who don't seem to include it as part of their remuneration package. Until they did reach an age where pension provision suddenly becomes a priority. An indexed linked CPI pension of £10k a year requires a pension pot of around £300k currently. (That's without 50% partner benefit either). Not a sum the average private sector worker is likely to be able to accumulate in their lifetime.

JoeCrystal

Thrugelmir wrote: »

Compared to the private sector still an exceptional level of benefit. Often undervalued by people. Who don't seem to include it as part of their remuneration package. Until they did reach an age where pension provision suddenly becomes a priority. An indexed linked CPI pension of £10k a year requires a pension pot of around £300k currently. (That's without 50% partner benefit either). Not a sum the average private sector worker is likely to be able to accumulate in their lifetime.

Well, the average contribution rate of both private sector employer and employee combined in 2016 for DC contribution is just 4.2% of pensionable earnings. So not that likely!

Thrugelmir

JoeCrystal wrote: »

Well, the average contribution rate of both private sector employer and employee combined in 2016 for DC contribution is just 4.2% of pensionable earnings. So not that likely!

Going to rise in the future. Not soon enough for many I fear.

westernpromise

chucknorris wrote: »

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.

For that reason I quite fancy blagging a public sector job for the last say 5 years of my working life. As you say, average / final = no difference. Although I'd presumably only get 5/60ths of the gold-plated pension, that would be fair because in effect my retirement would start the first day of "work" in the public sector. Turn up at 9, leave at 5, an hour for lunch and do your own stuff all day. I know someone at a government agency who wrote a novel in work time. In effect it's just a free office and nobody is ever sacked.

westernpromise

Nick_C wrote: »

The gross salary for my last job was cut in real terms by 15% between 2002 and 2012. I could afford to take the cut, but I saw many good people leaving and going to the private sector.

Only the good people could, leaving only the bad.

westernpromise

sevenhills wrote: »

In the recent pay negotiations the lower paid workers will get a larger pay rise, someone earning £8 an hour will get an increase of around 50p, £9 an hour and the pay rise is roughly 25p

That's because the more you earn, the more it's OK for the state to hate you.