Gold plated public sector pensions

hugheskevi

Johnnyboy11 wrote: »

There's a clear and determined direction of travel here...

Although going forward, it seems the direction has gone into reverse :shocked:

Our initial results show that the protections in the new cost cap mechanism mean public sector workers will get improved pension benefits for employment over the period April 2019 to March 2023.

Although only for 4 years perhaps...

I will therefore be asking the Government Actuary to undertake a review of the mechanism to check whether it is working as intended and delivering government’s objective to protect taxpayers and workers from unforeseen changes in pension costs. We are committed to fairly remunerating public sector workers and to implementing the results of the valuations, but it is right that we examine whether the mechanism is operating appropriately and in line with the original policy intentions. The scope of the review will be limited to the design of the cost cap mechanism. The review will conclude in time for the next four-yearly round of valuations.

Andy_L

Thrugelmir wrote: »

Highly unlikely. As after 10 years will hit the top of their grade. Only so many can move to a higher grade position.

In most (all?) of the civil service there is no no spine point pay progression anymore so the starting salary is the rate for the job

Andy_L

DairyQueen wrote: »

The numbers already look scary. The same source (I'll look for it) suggested the current public sector pension liability stands at close to 1.5 trillion.

"Sir Humphrey's Legacy" published by the IEA came up with the original £1 trillion black hole number. Its about 10 years old & my links no longer work.

It made similar "heroic" assumptions about the career path/pay progression of employees - every nurse becomes a matron, every CS a Sir Humphrey, every Lieutenant a General etc

jerrysimon

Joined MOD at 16 as an apprentice and left work 18 months ago aged 56. After 40 years am effectively on half final salary, though reduced a little as I took it before I was 60.

I chose to stay in the PS, although moved all over the place and retrained at one point. No appologies for my pension as whilst others chose to join the private sector for a lot more money, I chose to stay on less pay but better pension. I was automatically signed up at 16 and didn't have a clue about pensions then and the contribution I think was only 1.5% but when I left I was paying a lot more but still great value

Of course things have changed now, as higlighted, but when they did, I was over 50 so remained in the old scheme.

Muscle750

Sorry i dont agree with that Public sector is less paid, there are types of jobs many infact that dont physically exist in the public sector. We had our FS scheme ripped from under our feet as many did many years ago ive been with same company 30 years , My last statement did not make good reading believe me. I even asked the question of the transfer value of my FS scheme only to be told they had cut it by £23k as it was been took early needless to say i didnt bother. In the 10 years ive been out the FS scheme the projected annual income has jumped by a whopping £700 per annum not exactly 4 holidays in the sun a year material unlike a ex public sector worker i know of, Ill agree not all leave the public sector on huge money and alot do jobs that pay little i just think the difference between the two should be more level playing field and fair

JoeCrystal

Muscle750 wrote: »

I just think the difference between the two should be more level playing field and fair

I agreed. What are your suggestions on making it more level playing field and fair? We already had an excellent suggestion that all new staff should join a DC pension scheme rather than a DB pension scheme. That would go a long way making it fair. I would just close all public sector pension schemes and switch everyone over to DC schemes in my opinion. A good deal for the taxpayer.

Just bear in mind that you are also very lucky to be a member of a DB pension scheme (although deferred). I would love to be in such a scheme but alas, it is not an option for most people in the private sector. You got an excellent foundation for the retirement already so build on that. The £700 jump is meanless unless we know what is the first projected income. At least it is keeping pace with inflation. I am assuming that the company is contributing into your DC pot as well.

Lastly, you shouldn't care about what others do with their retirement. It is not your problem. Your sole focus should be ensuring that you and your OH have sufficient retirement by any mean. Life IS unfair but that is life for you.

hyubh

Muscle750 wrote: »

In the 10 years ive been out the FS scheme the projected annual income has jumped by a whopping £700 per annum not exactly 4 holidays in the sun a year material unlike a ex public sector worker i know of

Mrs Muscle...? I thought she hadn't retired from her council job yet.

Ill agree not all leave the public sector on huge money

Definitely not Mrs Muscle ;-)

hyubh

JoeCrystal wrote: »

We already had an excellent suggestion that all new staff should join a DC pension scheme rather than a DB pension scheme. That would go a long way making it fair. I would just close all public sector pension schemes and switch everyone over to DC schemes in my opinion. A good deal for the taxpayer.

Maybe, maybe not, but not very practical when in most public sector schemes current contributions expressly pay for current pensions.

Lastly, you shouldn't care about what others do with their retirement. It is not your problem. Your sole focus should be ensuring that you and your OH have sufficient retirement by any mean. Life IS unfair but that is life for you.

Well there's at least one person whose retirement he should about - his wife's, who has a decent LGPS pension from her decades-long employment by their local council...

Peelerfart

A subject that seems that seems to fire this board up, the public vs private debate.

In truth, I think, we have a choice when we decide, drift,or are forced through circumstances to choose our paths.
Pension is probably not our prime concern when we make this decision.

It's still good to read the emotional outbursts on the thread, even if it is based on a flawed study.

marlot

hugheskevi wrote: »

Having read through, here are my comments/thoughts:

• The report assumes an individual aged 25, starting at national average salary of £28,600, receiving salary increases of 4.75% (inclusive of inflation) per year until they retire at age 68.....

If my salary in the civil service had risen at 4.75% a year, I'd still be there, instead of my current plan of leaving in a couple of months time!