rick stevens wrote:
Hi

Not sure if this is the right newgroup to ask ths, but here goes.

As part of a TUPE process, i have been given a one off chance to join my new
employers final salary pension scheme.

The information I have says your pension is based on your pensionable
service, and final pensionable pay in last 12 months.

The formula to calculate the pension is 1/60 x fpp x ps.

What exactly is pensionable service? Is it the number of years I have been
in the scheme?

At full-time equivalent, yep.

Also, I am now 45, and have no other pension provision, is this worth doing?

It's always worth seeing an IFA, but for damn near everyone, it's worth
joining a defined benefits scheme.

FoFP

On Jun 24, 7:30*pm, "rick stevens" wrote:
Hi

Not sure if this is the right newgroup to ask ths, but here goes.

As part of a TUPE process, i have been given a one off chance to join my new
employers final salary pension scheme.

The information I have says your pension is based on your pensionable
service, and final pensionable pay in last 12 months.

The formula to calculate the pension is 1/60 x fpp x ps.

What exactly is pensionable service? *Is it the number of years I have been
in the scheme?

Also, I am now 45, and have no other pension provision, is this worth doing?


Final Salary schemes used to be good. However, check the small
prints, especially on the index linking, My employer recently changed
his FS scheme so that increments are at "inflation or 2.5% whichever
is the smaller" so the index-linking is very poor. the change only
applies to years credited since the date of the change, but for the OP
that would be all his years.

Robert

On Jun 24, 8:30*pm, "DB." wrote:
"BigGirlsBlouse" wrote in message

...







"rick stevens" wrote in message
...
Hi

Not sure if this is the right newsgroup to ask this, but here goes.

As part of a TUPE process, I have been given a one off chance to join
my new employers final salary pension scheme.

The information I have says your pension is based on your pensionable
service, and final pensionable pay in last 12 months.

The formula to calculate the pension is 1/60 x fpp x ps.

What exactly is pensionable service? *Is it the number of years I
have been in the scheme?

Also, I am now 45, and have no other pension provision, is this worth
doing?

thanks for any advice

Rick

IMHO you grab it quick before the employer takes it away.

remainder snipped

* * You clearly know much about these matters, Rick.
* * I've been retired many years and was on a final-salary scheme when I
was working.
* * My pension is index-linked. *I've not noticed any mention of
index-linking when these matters are discussed here. *Is I/L implicit in
a F/S scheme, or am I just fortunate?
* * Sadly, my wife dumped me some years ago but my scheme would have
given my widow a 'half-pension' for her remaining years. Is that common
with these schemes?


yes, but check the small print. I have a scheme from a former
employer and I found that the widow's pension is only payable if the
widow is the same person who was my wife at the time I
wascontributing. I have been deivorced and remarried since I left
the scheme (frozen) so nobody will get a widows pension from it.

R

"rick stevens" wrote in message
...
Thanks for all the advice, I think I shoudl sign up and not look a gift
horse in the mouth, so to speak.

Just for info, the contribution rate at present is 11.6% (but I think the
employers contribue as well) and the final pensionable pay is basic pay -
1.5 x state pension


11.6% as an employee's contribution. Compare that with 6.4% which is a (new)
teacher's contribution.

And yes, the employer contributes as well (unless it's an unfunded scheme
like many of the state sector schemes). But his contribution is not a
percentage amount. It's the amount that the actuaries reckon need to be put
in to the scheme to enable it to fulfil its obligations. How much this
amount is does not need to be a secret but it is not relevant to an
employee, who simply gets a set amount related to his income and years of
service (this is what a defined benefit scheme is).

Remember, membership of the scheme may take you out of the State Second
Pension (if it's a contracted-out scheme).

Rob

.....My employer recently changed
his FS scheme so that increments are at "inflation or 2.5% whichever
is the smaller" so the index-linking is very poor. the change only
applies to years credited since the date of the change, but for the OP
that would be all his years.

I think you will find your employer had no choice about that. The
Pension Act 2008 provided for a reduction of the cap on revaluation of
deferred pensions from 5% to 2.5% revaluation of deferred pensions from
5% to 2.5% and I think that has now come into force.

--
R

"M Holmes" wrote in message
...
rick stevens wrote:
Hi

Not sure if this is the right newgroup to ask ths, but here goes.

As part of a TUPE process, i have been given a one off chance to join my
new
employers final salary pension scheme.

The information I have says your pension is based on your pensionable
service, and final pensionable pay in last 12 months.

The formula to calculate the pension is 1/60 x fpp x ps.

What exactly is pensionable service? Is it the number of years I have
been
in the scheme?

At full-time equivalent, yep.

Also, I am now 45, and have no other pension provision, is this worth
doing?

It's always worth seeing an IFA, but for damn near everyone, it's worth
joining a defined benefits scheme.

FoFP

I beg to differ on the IFA!

Roger Mills wrote:
[snip]
I agree with all the advice given by others. Even for 20 years, it is
well worthwhile being in a final salary pension scheme.
[snip]

What about the risk of the trustees losing all the money paid in for your
pension ?

FERGUS O'ROURKE
www.twitter.com/ubfid
www.irish-lawyer.com
(Not just law stuff)

In an earlier contribution to this discussion,
Fergus O'Rourke wrote:

Roger Mills wrote:
[snip]
I agree with all the advice given by others. Even for 20 years, it is
well worthwhile being in a final salary pension scheme.
[snip]

What about the risk of the trustees losing all the money paid in for
your pension ?


What about it? What alternative would you recommend?
--
Cheers,
Roger
______
Email address maintained for newsgroup use only, and not regularly
monitored.. Messages sent to it may not be read for several weeks.
PLEASE REPLY TO NEWSGROUP!

Roger Mills wrote:
In an earlier contribution to this discussion,
Fergus O'Rourke wrote:

Roger Mills wrote:
[snip]
I agree with all the advice given by others. Even for 20 years, it
is well worthwhile being in a final salary pension scheme.
[snip]

What about the risk of the trustees losing all the money paid in for
your pension ?


What about it ?

It's surely a relevant consideration.

What alternative would you recommend ?

I am not authorised to give investment advice :-)

But I am inclined to agree with yours, with the rider that the OP keep a
very keen eye on the behaviour of the trustees. He may think it's more
expedient to get a private pension instead, or even forego the tax relief
and invest directly.

On Jun 25, 3:18*pm, "neverwas" wrote:
*.....My employer recently changed
his FS scheme so that increments are at "inflation or 2.5% whichever
is the smaller" so the index-linking is very poor. *the change only
applies to years credited since the date of the change, but for the OP
that would be all his years.

I think you will find your employer had no choice about that. *The
Pension Act 2008 provided for a reduction of the cap on revaluation of
deferred pensions from 5% to 2.5% revaluation of deferred pensions from
5% to 2.5% and I think that has now come into force.


Surely the 2008 act did not force employers to do this; it merely
enabled them to do it. Or did I misunderstand it?



Robert