updates on FBU, Civil service pensions

hyubh

m_c_s wrote: »

That must be unique to the FB pension?

No, the police pension scheme was/is structured similarly - until changes in 2006 for new joiners, based on 30 years service for a pension of 2/3 final salary, inclusive of a 'double accrual' for the final 10 years. When the 2006 schemes came in, the much poorer benefit structures were offset with lower contribution rates, which then continued in a modified form with the CARE police and fire schemes.

For most other Public Sector pensions I assume the increased contributions from 2012

2012 wasn't special for most public sector schemes. E.g. the LGPS went to employee rates banded by WTE pay in 2008, switching to actual pay in 2014. Even now the average employee rate in the LGPS is only marginally higher than the traditional (i.e. prewar to 2008) 6%.

Seems we will have to wait for Civil Service pensions to be resolved to know how we will be impacted.

Contribution rates won't be affected given bands were harmonised between the civil service scheme sections on Alpha coming in.

chubsta

So, if I am reading this right, it seems like those of us moved to the Alpha as we were under a certain age in 2014 will now be put back on the Classic? If so, does that mean that my Normal Pension Age will be 60 and therefore there will be no Acturial Reduction if I go at this age? But, even though we have made vastly increased pension contributions over the last few years we owe them money if we go back on the Classic?

I have done loads of calculations over the last year or so, and it seems to me that despite losing the Lump Sum aspect by moving over to Alpha that I am actually better off overall, so going back to Classic will have a pretty large negative impact on my retirement income!

sammyjammy

chubsta wrote: »

So, if I am reading this right, it seems like those of us moved to the Alpha as we were under a certain age in 2014 will now be put back on the Classic? If so, does that mean that my Normal Pension Age will be 60 and therefore there will be no Acturial Reduction if I go at this age? But, even though we have made vastly increased pension contributions over the last few years we owe them money if we go back on the Classic?

I have done loads of calculations over the last year or so, and it seems to me that despite losing the Lump Sum aspect by moving over to Alpha that I am actually better off overall, so going back to Classic will have a pretty large negative impact on my retirement income!

Nearly!


Nobody will be "put" back into Classic but will have the opportunity to make that decision for themselves, hopefully they will provide some guidance for people to make this decision, not everyone will be better off returning to Classic as it will depend on their circumstances and their retirement plans.


The article relates to the Fire Brigade so some it doesn't apply to Civil Servants ,the contributions being one of those, our contributions were increased to the level they are at now before we were even moved from Classic so we won't be required to pay anything.

If you did choose to return to Classic then yes your NRA for that scheme would still be 60 (as it already is for that accrued pension)

chubsta

sammyjammy wrote: »

Nearly!


Nobody will be "put" back into Classic but will have the opportunity to make that decision for themselves, hopefully they will provide some guidance for people to make this decision, not everyone will be better off returning to Classic as it will depend on their circumstances and their retirement plans.


The article relates to the Fire Brigade so some it doesn't apply to Civil Servants ,the contributions being one of those, our contributions were increased to the level they are at now before we were even moved from Classic so we won't be required to pay anything.

If you did choose to return to Classic then yes your NRA for that scheme would still be 60 (as it already is for that accrued pension)

Thanks for that - I am sure it isn't going to be that easy to work out what is the best course of action for most people. For me, the ideal scenario is to stay on Alpha, but to compromise by having a NRA of 60 as it was on the Classic, and also get a nice bit of compo for the pain and distress this has caused me (and my time working out the impact of the various changes!) - that is my Best Case Scenario. Hopefully my Worst Case Scenario is to stay exactly where I am now.

Either way, hopefully it can be resolved reasonably quickly, along with the potential changes to our monthly contribution %, which I guess is now all tied in with it...

sammyjammy

chubsta wrote: »

Thanks for that - I am sure it isn't going to be that easy to work out what is the best course of action for most people. For me, the ideal scenario is to stay on Alpha, but to compromise by having a NRA of 60 as it was on the Classic, QUOTE]

That's never going to happen but if you decided to stay on Alpha you will still have an NRA for the classic element of your pension.

Tromking

Interesting to note also that compensation will be paid for 'injury to feelings'.

stoozie1

Apologies if this point has been made before, but a few posters seem to be thinking that the retrospective changes will then continue. Unfortunately what has been achieved is a restitution of those whose age prevented them having transitional protection up to 2022.

After this point, it would be better to assume you will be paying into a 2015 style scheme for the rest of your career.

Tromking

stoozie1 wrote: »

Apologies if this point has been made before, but a few posters seem to be thinking that the retrospective changes will then continue. Unfortunately what has been achieved is a restitution of those whose age prevented them having transitional protection up to 2022.

After this point, it would be better to assume you will be paying into a 2015 style scheme for the rest of your career.

I have to admit to being one of those.:)
Why 2022?
It sounds like another arbitrary date to me.

hyubh

Tromking wrote: »

Why 2022?

Because that's when the original protection capped out - it was for individuals up to 10 years before NRA in 2012.

sammyjammy

stoozie1 wrote: »

Apologies if this point has been made before, but a few posters seem to be thinking that the retrospective changes will then continue. Unfortunately what has been achieved is a restitution of those whose age prevented them having transitional protection up to 2022.

After this point, it would be better to assume you will be paying into a 2015 style scheme for the rest of your career.

Do you have a link?