Public sector pensions …if triple lock abandoned.

calcotti

Perhaps worth remembering that the triple lock was only introduced in 2010 by the coalition government. Interesting briefing paper on the policy and the background here
 https://researchbriefings.files.parliament.uk/documents/CBP-7812/CBP-7812.pdf

daveyjp

DB actually make sense for public sector in terms of public sector debt. An employee defers an element of salary for 40+years on the promise they will get some of it back when they retire.

Chances are most PS workers won't get huge salary increases and bonuses are a rarity.

When they retire they may live 40 years and do well from the pension, they may also die on the first day of retirement and never see a penny of 40 years of contrbutions.  They may also die during service.  Actuaries know this and calculate pension liabilities based on age of death stats.  Early death saves the public money.

About 40,000 civil servants retire a year.  Even with a modest  pot of £200,000 thats £8bn, add in NHS, local Government, teachers, MOD etc and you are into tens of billions.

Move to DC for public sector and every public sector employee will have a pot of money which needs to be accounted for.  Die on day one of retirement and that DC pot of hundreds of thousands has to be paid out.  

It would need actuarial assessments between DB and DC liabilities for PS workers and it may end up costing a lot more.

ChocolateWombat

Liz Truss has confirmed commitment to triple lock.

No worries for public sector DB pension revaluation this year.  10.1% will be applied to pensions in payment and to calculations for those still contributing .

GibbsRule_No3.

If we do get the Triple Lock on both State and Civil Service Pension, then perhaps the Government won’t need to give all these handouts to every household and they can go the Means Test route.  If I get the TL then I probably would not need a handout or extra £300 Winter Fuel allowance.  I’m sure these measures has cost far more than giving me the TL this year.  £150, £400 and another £300 to come, if I was on a Benefit I’d have been given even more money.  So £850 extra this year or £1050 towards my energy bills if I count the usual £200 WF.  I’m sure that is enough to cover the rise.

Arkers

ChocolateWombat said:

Liz Truss has confirmed commitment to triple lock.

No worries for public sector DB pension revaluation this year.  10.1% will be applied to pensions in payment and to calculations for those still contributing .

This is not strictly true NARPO (National Association of Retired Police Officers) have indicated that the 10.1% has not been yet confirmed as the percentage increase for next April on DB Police pensions.

I seriously wouldn't put anything past this shower especially with "Hatchet Hunt" in charge.

Silvertabby

GibbsRule_No3. said:

If we do get the Triple Lock on both State and Civil Service Pension, then perhaps the Government won’t need to give all these handouts to every household and they can go the Means Test route.  If I get the TL then I probably would not need a handout or extra £300 Winter Fuel allowance.  I’m sure these measures has cost far more than giving me the TL this year.  £150, £400 and another £300 to come, if I was on a Benefit I’d have been given even more money.  So £850 extra this year or £1050 towards my energy bills if I count the usual £200 WF.  I’m sure that is enough to cover the rise.

Even without the triple lock we really don't need £500 of tax payer's money.  We have always given our WFA to a couple of family members who need it more than we do.  Ditto this year's extra payment.

You only have to see my fellow shoppers in our local M&S foodhall, all with heaving trollies, to know that not all pensioners are hurting.  These extra handouts should be targetted at those who really need them, not just scatter-gunned at everyone who just happens to be over a certain age.

arnoldy

Means Test

Absolute poison for people trying to take responsibility for themselves. All means testing does is remove incentive for a vast swathe of the population when they get no more (often less) that those who put away nothing. Take pension credit - qualify and you get a treasure trove of other benefits - Council Tax, Warm Front, Free TV, Cold Weather payments, grants and misc. freebies. Save and be a few pence over and you get nothing, so you are worse off.

NedS

Arkers said:

ChocolateWombat said:

Liz Truss has confirmed commitment to triple lock.

No worries for public sector DB pension revaluation this year.  10.1% will be applied to pensions in payment and to calculations for those still contributing .

This is not strictly true NARPO (National Association of Retired Police Officers) have indicated that the 10.1% has not been yet confirmed as the percentage increase for next April on DB Police pensions.

I seriously wouldn't put anything past this shower especially with "Hatchet Hunt" in charge.

Well of course not, as the measures haven't been passed into law yet - that normally happens sometime in November each year. The 10.1% CPI inflation figure was only released at 7am this morning - give them some time to do their jobs.

drummersdale

Great news from Liz Truss, someone renowned for never changing her mind, has changed her mind again so the Triple Lock is staying apparently https://news.sky.com/story/liz-truss-says-she-is-completely-committed-to-the-pensions-triple-lock-at-make-or-break-pmqs-12724415Liz Truss 'completely committed' to pensions triple lock after Hunt fails to make same promise

Arkers

NedS said:

Arkers said:

ChocolateWombat said:

Liz Truss has confirmed commitment to triple lock.

No worries for public sector DB pension revaluation this year.  10.1% will be applied to pensions in payment and to calculations for those still contributing .

This is not strictly true NARPO (National Association of Retired Police Officers) have indicated that the 10.1% has not been yet confirmed as the percentage increase for next April on DB Police pensions.

I seriously wouldn't put anything past this shower especially with "Hatchet Hunt" in charge.

Well of course not, as the measures haven't been passed into law yet - that normally happens sometime in November each year. The 10.1% CPI inflation figure was only released at 7am this morning - give them some time to do their jobs.

Of course understood, but as Parliament is Supreme legislation can be changed and the low level of trust that this Government has engendered where "Nothing is off the Table" you cannot be absolutely sure until it's ratified.  I think it would be very difficult for the Government not to honour the CPI, but who knows!