Can you help? Potentially leaving civil service ... what about pension?

locutus2003

I'm in the rather wonderful position of, I think, being about to be offered a truly wonderful job. However, I am currently a civil servant - and I have 12 years' of pension accrued. I pay 3% of my salary for it (I think it's Premium).

Anyway, if I leave the CS, then I would freeze my pension as it would give me 1/5th of my current salary. However, if I am offered this other job, there is a pension but I believe it's a defined contribution scheme (I pay 2.5% and each year they pay 7.5% and an increase 1% pa until they reach 15%).

Does that sound good? I realise it won't be as good as my final salary scheme. I'm trying to work out how to compare it so that I can ask for the right amount of salary to compensate me. I think my pension is worth c. £12k pa (I earn £45k). Does that sound about right?

Sorry for all the questions - I've been rather burying my head in the sand because I so want this other job - but I'm having the final interview tomorrow (I'm now the only candidate, all the others having been rejected) so I'm thinking it's about time I pulled my head out of the sand!!

many thanks

dunstonh

The employer contributions are good on the money purchase scheme. Typically 3% is closer to the mark (and the minimum from 2012).

I think my pension is worth c. £12k pa (I earn £45k). Does that sound about right?

That would be right for someone with a service of around 20 years.

Andy_L

Your CS pension is not frozen, it will increase in line with RPI every year (ie over the last couple of years possibly by more than your salary did )

The employers (pseudo) contributions are, arguably, worth 20%ish so does the new job pay enough to make up for it, or is it just a better job so you don't care?