Civil Service payrise - pensions ?

50Twuncle

I was wondering whether the recently announced civil service (above inflation) payrise will be applied to current pensioners as well ?

Dazed_and_confused

There doesn't seem to have been a pay rise announced for civil servants.

There is one expected for "senior" civil servants but the press reports seemed to make it clear the announcement was not aimed at civil servants and one or two others the headline might have implied were going to benefit (LGPS?).

But irrespective of that existing pensions are linked to an inflation rate (CPI?) in September.
Which will be announced sometime in October I think.

Dox

Increases to pensions in payment are set down in the legislation governing the scheme, and that's what will be paid.

nigelbb

Civil service pensions in common with other defined benefit pension schemes all depend on how much the employee was paid while employed not on what current employees are paid.

Dazed_and_confused

The op did refer to "current pensioners".

It is really only the starting amount that is based on what they were paid, subsequent increases are currently based on an inflation measure.

nigelbb

Dazed_and_confused wrote: »

The op did refer to "current pensioners".

It is really only the starting amount that is based on what they were paid, subsequent increases are currently based on an inflation measure.

Overwhelming the pension is based on what the pensioner earned while they were an employee. Inflation has been low for many years so any increases have been proportionately small. Which doesn't distract from the basic truth that for a pensioner it doesn't matter what current employees are paid or what salary increases they receive. In fact over the last ten years public sector pensiors have done rather better by way of increases than have public sector salaries.

System

whatever happens its just more money that us in the private sector who had our FS pensions tore from under our feet years ago will fund in our income tax , not of course to mention in the future when those getting a pay increase will enjoy a bigger pension also when they decide to call it a day many way before the normal state retiring age. Meanwhile ill carry on till im 67 doing heavy manual work Not to mention that weve had no pay rise now in 11 years along with a £33 million blackhole in our pension fund

50Twuncle

Nikond4 wrote: »

whatever happens its just more money that us in the private sector who had our FS pensions tore from under our feet years ago will fund in our income tax , not of course to mention in the future when those getting a pay increase will enjoy a bigger pension also when they decide to call it a day many way before the normal state retiring age. Meanwhile ill carry on till im 67 doing heavy manual work Not to mention that weve had no pay rise now in 11 years along with a £33 million blackhole in our pension fund

£33 BILLION surely - not £33 Million
But even this is peanuts when you look at the pension deficit for the whole UK of at least £6 trillion !!
I was retired at age 46 on an un-enhanced ill health pension with 29 years service.....

Dazed_and_confused

Which (funded) pension fund has a £33 billion shortfall??

50Twuncle

Dazed_and_confused wrote: »

Which (funded) pension fund has a £33 billion shortfall??

Sorry - misunderstood what Nikond4 was talking about - I assumed civil service pensions !

Tom99

Civil service pensioners have had CPI linked increases anyway so generally above the rate of pay increase for those still employed. A total of +19% since April 2011 for example.