Council pension abatement

[IsItFriYet]

Apologies as unsure whether to post here or in employment.

Does anyone know about abatement?

I am in receipt of a second tier pension. A small portion related to pre 2008, another chunk is pre 2014 and the last chunk was from
more recent employment before I was pensioned off. Am under 55.

Ive been offered a part time job and as my health has improved somewhat I want to take it and see how I go. I was told that I have to inform the fund of any new employment.

The council appear to have a policy that abatement is not currently being implemented as it’s uneconomical. Not sure how long this policy will continue - they could change it at any time.

I can see on the funds website that it’s something along the lines of my combined pension and income must not be above what I used to earn else the pension will reduce accordingly.

It appears to only relate to pre 2014 contributions?

When I’ve called them for clarification they will not calculate anything until I’ve taken the job. I don’t want to accept a job if it’s not worthwhile. Am unsure what happens if I accept, my pension is less and then I can’t manage work after all.

Does anyone happen to work for pensions who can advise?

Money Saving Expert site has a pensions forum with some experts on if you dont get any response here.

You’ve basically got it right with what you’ve put here.

Local authority pension funds have the discretion that if someone is getting a pension and then becomes re-employed, the pension can be abated (reduced) for the period of the re-employment. This only applies if the pension you’re getting plus the earnings from the new role exceed the pay you used to earn when your previous job finished (I.e. the final pay that your pension in payment is calculated on). It’s only the pension accrued up to March 2014 that can be abated.

Most pension funds don’t abate any more - if yours isn’t abating I think it’s very unlikely that they will start again (partly because it’s a pain in the arse for them to administer!) but it is possible that they might.

Work out roughly what the value of your pre-2014 pension is, add that to the pay you will earn in the new role, then compare it to the final pay in your previous role. If it’s less then you will be fine even if they do reinstate.

However given that they’re not currently abating and may never start doing it again, you may as well take the job - you can always give it up if the policy changes and your pension does get abated.

Definitely check the position with the fund that pays your pension though - they should at least be able to confirm that the current policy is not to abate even if they can’t commit to anything in future.

@Turmerictolly Thank you that’s helpful, can take a look there too.

@ChessieFL very helpful advice. So basically I need to confirm they aren’t abating (never heard that term before) and can try to work. If they decide to abate and it’s not worth it financially then I can give up work and retain the full pension…why couldn’t they just tell me that? I’ve been going around in circles.

This is based on my final salary when I left work, when I was working on reduced hours, not on what I used to earn full time - is that right?

Do you happen to know what the rules are about types of work? Am I allowed to work shifts as a locum in the same or similar job as to what I was doing when they retired me?

Also, if they reinstate abatement are they obligated to tell me or do I need to keep checking? Or would it just be included within those pension newsletters?

Wow, didn’t realise that post was so long,

You need to check with your pension fund for the questions you have asked. Different funds do things a bit differently when it comes to abatement so you would need to check with your fund’s specific rules.

Ok will do. Thanks for the info.