John The Pessimist Posted August 23, 2016 Share Posted August 23, 2016 Pension reform plans to potentially eviscerate private final salary schemes.... http://www.telegraph.co.uk/pensions-retirement/news/radical-government-plans-to-reform-final-salary-pensions-could-c/ No suggestion that public sector defined benefit schemes will be touched. I wonder why?* *MPs are eligible for a public sector pension depending upon how long they are in parliament? Quote Link to comment Share on other sites More sharing options...
RentingForever Posted August 23, 2016 Share Posted August 23, 2016 (edited) Even with a 30% cut they'd still be more generous than the DC schemes most of us still in work have to put up with. [edit - oops, meant DC - deifned contribution] Edited August 23, 2016 by RentingForever Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted August 23, 2016 Share Posted August 23, 2016 Even with a 30% cut they'd still be more generous than the DB schemes most of us still in work have to put up with. Indeed, index linked annuity rates at 60 (current retirement age for most schemes in the public sector)....2.7%. a cool £300,000 for an 8k annuity..peanuts innit. Quote Link to comment Share on other sites More sharing options...
Simon Taylor Posted August 23, 2016 Share Posted August 23, 2016 Pension reform plans to potentially eviscerate private final salary schemes.... http://www.telegraph.co.uk/pensions-retirement/news/radical-government-plans-to-reform-final-salary-pensions-could-c/ No suggestion that public sector defined benefit schemes will be touched. I wonder why?* *MPs are eligible for a public sector pension depending upon how long they are in parliament? Not at present, but once those in private sector schemes see their promises being reneged upon, the noise to have the same pain inflicted on the public sector will be deafening. We hear a lot about how DB and FS pensions are crippling big business and starving these companies of cash for investment. We hear less about how huge PS pensions, especially in councils, impact on smaller businesses. Business rates make up a significant proportion of council revenues and increasingly have little relevance to the rental value of the property occupied or the services offered. Business rates are often cited as the reason small firms cease to be viable. Unlike the households who pay Council Tax, businesses don't get a vote. Quote Link to comment Share on other sites More sharing options...
Confusion of VIs Posted August 23, 2016 Share Posted August 23, 2016 Not at present, but once those in private sector schemes see their promises being reneged upon, the noise to have the same pain inflicted on the public sector will be deafening. We hear a lot about how DB and FS pensions are crippling big business and starving these companies of cash for investment. We hear less about how huge PS pensions, especially in councils, impact on smaller businesses. Business rates make up a significant proportion of council revenues and increasingly have little relevance to the rental value of the property occupied or the services offered. Business rates are often cited as the reason small firms cease to be viable. Unlike the households who pay Council Tax, businesses don't get a vote. A lot of the public sector have already had their promises reneged upon: change from RPI to CPI inflation linking pension age moved from 60 to 66/67 final salary replaced by career average Quote Link to comment Share on other sites More sharing options...
brit1234 Posted August 23, 2016 Share Posted August 23, 2016 Even with a 30% cut they'd still be more generous than the DB schemes most of us still in work have to put up with. Final Salary and DB (defined benfits) schemes are the same thing, just another name. I think you are mistaken with DC schemes which are worse. Quote Link to comment Share on other sites More sharing options...
Will! Posted August 23, 2016 Share Posted August 23, 2016 Pension reform plans to potentially eviscerate private final salary schemes.... http://www.telegraph.co.uk/pensions-retirement/news/radical-government-plans-to-reform-final-salary-pensions-could-c/ No suggestion that public sector defined benefit schemes will be touched. I wonder why?* No need to do it to public sector DB schemes. Most such schemes are already closed to new entrants and lowering the LTA and increasing tax rates above the LTA will have the same effect with less political resistance. Quote Link to comment Share on other sites More sharing options...
RentingForever Posted August 23, 2016 Share Posted August 23, 2016 Final Salary and DB (defined benfits) schemes are the same thing, just another name. I think you are mistaken with DC schemes which are worse. Yep, sorry - ,meant DC. Corrected! Quote Link to comment Share on other sites More sharing options...
Pop321 Posted August 24, 2016 Share Posted August 24, 2016 No need to do it to public sector DB schemes. Most such schemes are already closed to new entrants and lowering the LTA and increasing tax rates above the LTA will have the same effect with less political resistance. Private ones closed too. The main problem with DB schemes are the goalposts completely move all the time. Many have been frozen (there are about 10 versions of how employers do that). I have one and thinking seriously of taking the transfer value now rather than the pension. But acknowledge that value is way above what I could have saved......so although caught between young and old I realise I will be luckier than those behind me. Quote Link to comment Share on other sites More sharing options...
frederico Posted August 24, 2016 Share Posted August 24, 2016 Let's be honest, all pensions that assume a degree of growth from risk free investments are stuffed. You either have to play the lottery with your pension or save a whole lot more. None of which squares with expensive housing or spending our way out of recession. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted August 24, 2016 Share Posted August 24, 2016 (edited) A lot of the public sector have already had their promises reneged upon: change from RPI to CPI inflation linking pension age moved from 60 to 66/67 final salary replaced by career average Built up rights on the old contract can still be taken at 60, I believe. But don't complain about something that will cost the rest of us trillions, be happy with the subsidy you received under the old contract and the lesser subsidy you will still now be getting. Private company schemes don't get bailed to this extent and individual pensions not at all, many of which carried promises (Equitable) that were missed by a country mile not just a few tweaks. Btw two reasons I am not complaining even though I haven't got one, the missus has one and I sort of get that the economy is helped by the fabulously wealthy public sector pensioners and indeed they wont have recourse to stuff like housing benefit and minimum income guarantee. When I was in business they were my main customers too. We rely on the trickle down effect from these rich individuals I suppose . Edited August 24, 2016 by crashmonitor Quote Link to comment Share on other sites More sharing options...
Errol Posted August 24, 2016 Share Posted August 24, 2016 Let's be honest, all pensions that assume a degree of growth from risk free investments are stuffed. Corrected. Quote Link to comment Share on other sites More sharing options...
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