Pension V colleagues

westv

I've mentioned this elsewhere but the only time I've been on the wrong side of age related pension benefits was with the first company I worked for. I was there 17 years but only had 9 years of DB pension because you could only join once you were 25

Albermarle

Perksy5 said:

I believe it is sadly allowed. My employer historically paid final salary pensions and just before I joined (5 years ago), there was a big communication where they in essence offered big dolla to pay off the people on the old style pensions to save the company money in the long term and move them to the newer style pension which is far less lucrative.
As a middle ground, I believe there was another pension after the final salary one but before the newest, which enabled colleagues to flex up their contributions and the company would pay even more into their pension on the colleagues behalf.
Of course when I joined I didn't get to experience either of those, I'm on the very newest where the company pays a flat 12%, and then I can pay in more if I wish. Not bad compared to some now, but no where near as lucrative as the old style ones.
Some people have won the age lottery by working when they did and staying with their company as long as they did do. Its sadly just the way it is.

This happened in numerous companies as DB pensions were becoming unaffordable to fund for many companies. Even now many companies are having to make large contributions to DB pension schemes that have been stopped for new entrants many years ago, just to keep them solvent. 
12% from employer into a DC scheme is very much at the top end, so could be worse.

noclaf

My last employer provided a 12.4% match Vs my 8%. However for more recent joiners in the last 2 years they have lowered the employer match....seems a lot of firms are tightening up.

eastcorkram

I'd be delighted if my employer was paying in 12%!