Can anyone explain to be all of the public sector pension alterations stuff?

[MavisEnderby]

Are the Govt really thinking of scrapping final salary pension schemes???(Sorry am very dim about politics emoticon)

Sort of. They are propsing that final salary schemes end and all years service accrued up until 2015 is based on the final salary at retirement. All service/accrual from 2015 onwards will be based on the career average salary.
Also the retirement age is moving up to 65 or 66.

All service accrued to date will be ringfenced. It is just future service that is going to be changed.
The private sector is being screwed so don't see why public sector shouldn't share the pain.

As I understand it, the recommendation is to move from final salary schemes to 'career average salaries'. This would affect those at the upper end of the payscales more than those lower down whose salaries tend to stay at similar levels throughout. And I think the idea is to ultimately do away with final salary schemes for new public sector employees in favour of things like money purchase schemes which are becoming the norm elsewhere.

The other recommendations are that employees contribute into their pensions at a higher level and that the earliest retirement dates are put back so that they are more in line with the state retirement age.

The maths argument is that the contributions in are not keeping pace with the withdrawals out. People are living a lot longer than in the past. Currently, the shortfall is being made up with tax money.

Oh bugger thats me screwed then.

NHS 15 years,now work pt due to partners death and having a disabled child:(

Thanks for enlightening me though!

Could I increase my current pension paynents for next 4 years then?

(very thick about all of this stuff)

I THINK the fsps was closed to new starters in 2008 for nhs

If your salary has gone down since being employed by the NHS 15 years ago you might actually benefit from a career average system. It's only a proposal, don't forget. There's going to be a lot of discussion with the unions before any of the recommendations are actioned.

You should be able to make AVCs to your pension regardless of what happens next. Ask your personnel/wages team where you work for details.

Mavis I would guess so. We are buying extra years for dh currently to get as much in under the final rather than average.
If you used to be full time and are now part time, career average might work out best for you anyway.
I was so sorry to hear about your dp - how are you doing?

It will be interesting to see how it all pans out. The proposal to raise the age to 6 for HM Forces looks great, until one realises that they are not allowed to serve until 60. As dh says, he's happy to take it from 60, but they need to continue to employ him for the seven years between when he has to retire according to RN rules and 60.

I am glad he retires in 2014; he'll get what he was promised when he joined!

its about time the buggers had to pay

My husband is a serving police officer. Aged 46. A proper one, done his time on streets ( Moss Side in Manchester). Now a Detective ( only a constable). Believe me he doesn't get ££££. Doesn't get any of the OT or special payments the press are banging on about.

A couple of weeks ago he intercepted a burglar at a local address, (off duty, walking the dog :)))who had perpetrated a violent and sustained assault on the householder.My hero xxx

In the early part of his career he worked crazy shifts, seen nights one after the other, back to back long days you name it.. I have always worked full time and only with the help of family and friends have we managed to sustain two reasonable careers. No family support? Forget it, and thats why a lots of police families are reliant on one wage.

He pays 11% of salary for his pension, they don't get it for nothing.

And he is ex forces as well.

I , for one am very proud of him x

What buggers, thereiver?