What will teachers pension increase by this year? 10% CPI?

Terron

nigelbb said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

You don't contribute equivalently. You have chosen to work for a higher salary & poorer pension. It's always been the way with public sector jobs. The old deal was that working in the public sector was a lower salary with a good pension plus secure employment but now even the jobs of nurses & teachers aren't safe from redundancy.

No it hasn't. In the mid 80s my sister was a a teacher whilst I was working in the private sector in IT. The pension scheme where I worked was only open to management so I was starting a personal scheme. She claimed I got a higher salary in exchange, but when we checked her pay was higher (by £200pa). I had started working a year before her so it wasn't a matter of seniority. I was also getting a lot of overtime.

xylophone

Free travel, tv licenses, fuel subsidies, consumer discounts, government schemes, etc at the same time that housing values have had a once in a lifetime gazillion percent increase. 

Suggest you check on the bold!

And have you considered that pensioners with income above the personal allowance pay tax?

And pensioners with generous pensions pay quite a lot of tax!

german_keeper

Terron said:

nigelbb said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

You don't contribute equivalently. You have chosen to work for a higher salary & poorer pension. It's always been the way with public sector jobs. The old deal was that working in the public sector was a lower salary with a good pension plus secure employment but now even the jobs of nurses & teachers aren't safe from redundancy.

No it hasn't. In the mid 80s my sister was a a teacher whilst I was working in the private sector in IT. The pension scheme where I worked was only open to management so I was starting a personal scheme. She claimed I got a higher salary in exchange, but when we checked her pay was higher (by £200pa). I had started working a year before her so it wasn't a matter of seniority. I was also getting a lot of overtime.

Just wondering what the relevance is of comparing the pay and pension of 2 people in completely different jobs?

Exodi

horsewithnoname said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

the average civil service pension is about £4,200 p.a. in fact. Not that eyewatering.

Lol, behave.

hyubh

Prism said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

When you say contribute equivalently I assume you mean that you contribute at around 30% of your salary as that is what typically happens for a government pension

A civil servant on £50K pays a rate of 5.45%.

Prism

hyubh said:

Prism said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

When you say contribute equivalently I assume you mean that you contribute at around 30% of your salary as that is what typically happens for a government pension

A civil servant on £50K pays a rate of 5.45%.

And the employer pays around 28% - hence why the difference in outcomes in future pensions.

Dazed_and_C0nfused

hyubh said:

Prism said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

When you say contribute equivalently I assume you mean that you contribute at around 30% of your salary as that is what typically happens for a government pension

A civil servant on £50K pays a rate of 5.45%.

Or a real cost of 4.36% after tax relief.

Scottish civil servant earning £50k would have a real cost of just 3.215% 

hyubh

Prism said:

hyubh said:

Prism said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

When you say contribute equivalently I assume you mean that you contribute at around 30% of your salary as that is what typically happens for a government pension

A civil servant on £50K pays a rate of 5.45%.

And the employer pays around 28% - hence why the difference in outcomes in future pensions.

... and if how private sector DB schemes value their liabilities is the metric, the official employer rates of the CSPS actually undervalue scheme benefits. Funnily enough this tends to get ignored when across the board pay rises are discussed though.

cfw1994

Terron said:

nigelbb said:

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

You don't contribute equivalently. You have chosen to work for a higher salary & poorer pension. It's always been the way with public sector jobs. The old deal was that working in the public sector was a lower salary with a good pension plus secure employment but now even the jobs of nurses & teachers aren't safe from redundancy.

No it hasn't. In the mid 80s my sister was a a teacher whilst I was working in the private sector in IT. The pension scheme where I worked was only open to management so I was starting a personal scheme. She claimed I got a higher salary in exchange, but when we checked her pay was higher (by £200pa). I had started working a year before her so it wasn't a matter of seniority. I was also getting a lot of overtime.

Anecdotal evidence can show whatever you like 😉
I had a role in tech in local government (many years ago!) - moved to private for (IIRC) around a 10% increase, but over the ensuing years, that disparity grew further apart fairly rapidly.  

AlanP_2

Exodi said:

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

Please don't take this the wrong way but, if you want a similar pension, why don't you get a public sector job? 

I worked in the private sector for about 30 years and accumulated a mix of old / deferred DB pensions and DC pots. They were (mainly) great jobs, long hours, exciting, interesting, challenging and well rewarded in terms of salary and bonuses.

After being made redundant for the 4th time I got a 2 year fixed term role in the public sector. Salary was 40% less than in private sector and there were no bonuses. The pension however was "gold plated" as you put it.

I transferred my DC pots in to the scheme and "bought" additional years of service, so transferring the risk I was taking to them. As this was just after the GFC in 2008 the "lost pot" didn't go on to enjoy the growth seen over the next 12-14 years (so you could argue I lost on that one).

Once the 2 years was up I obtained a permanent role, by dropping a grade and 10% in salary, and was there for 13 years in total.

Working out which was better financially is tricky although even if the pension was valued at 1/3rd salary I was still behind on an overall remuneration basis, but on balance I feel that the path followed was for the best.

To my mind there are very few "skills / roles" that can't work in either the public or the private sector, and individuals make their own choice about who they work for. If a gold plated, public sector pension is what you value and want then get a job with an organisation that offers them. You might have to take a pay cut, give up the private sector perks and put up with a lot of crap from politicians but that's the job.