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Leaving the new pension

14 Apr 2019, 15:58

Leaving the new pension . How do you leave this corrupted CDC rubbish?

Leaving the new pension

14 Apr 2019, 16:02

You can't leave something that hasn't started yet!

Leaving the new pension

14 Apr 2019, 16:09

RobertT wrote:You can't leave something that hasn't started yet!

I hope it doesn't start . The NRA will take a big percentage and we know it will pay peanuts.

Leaving the new pension

14 Apr 2019, 17:06

Obviously past performance is is not necessarily a good guide, but the target growth rate is quite a lot lower than historical returns from equities. So although CDC benefits could go down, realistically the investments would need to tank over a period of time compared to market averages, for there to be a drastic reduction in our CDC pensions.
It actually aims to provide broadly similar benefits to section B of the RMPP!

Based on the new basic full time pay of £441.58 per week, opting out of CDC would mean giving up over £3,500 per year in free money from RM and the taxman.
That wouldn't be the best financial decision you ever make! :hmmmm

Leaving the new pension

14 Apr 2019, 17:16

RobertT wrote:Obviously past performance is is not necessarily a good guide, but the target growth rate is quite a lot lower than historical returns from equities. So although CDC benefits could go down, realistically the investments would need to tank over a period of time compared to market averages, for there to be a drastic reduction in our CDC pensions.
It actually aims to provide broadly similar benefits to section B of the RMPP!

Based on the new basic full time pay of £441.58 per week, opting out of CDC would mean giving up over £3,500 per year in free money from RM and the taxman.
That wouldn't be the best financial decision you ever make! :hmmmm
yes they say £3500 but in reality would it be ? With 60 or 70 percent loss for taking early

Leaving the new pension

14 Apr 2019, 19:13

arnold cheshire wrote:yes they say £3500 but in reality would it be ?

That would be the contributions going in based on current full time basic pay and rates of 13.6% from RM and 6%(gross) from us.
So using the above wage figures, the yearly contributions into CDC/DBLSS would look something like this:

You - £937
RM - £3,122
Taxman - £440

With 60 or 70 percent loss for taking early

What you choose to do with your CDC pension is entirely up to you(within the rules).

If you were to take it early, you would see a reduction, but 60-70% is unlikely, unless you perhaps take it at 55?
You could also get a transfer value and move it into a DC scheme for drawdown, which might be better suited to your position?
You could even take it at NRA(perish the thought).

This is going off topic, but as far as I'm concerned, it doesn't really matter whether we're talking about the RMPP, CDC, RMDCP, the state pension or any other pension you may have. It'll be worth what it's worth when you access it and if that's not going to be enough or it doesn't do what you want, then it's up to you to do something about it.
That could be saving more, managing what you've got slightly differently(eg, drawdown), or resigning yourself to either living on less in retirement or working longer than you want to.

It used to be the case that you could work for 40 years and get a 'gold plated' pension without really thinking about it. But those days are gone I'm afraid, therefore turning your back on over £3,500 per year would be crazy. :crazy:

Leaving the new pension

15 Apr 2019, 14:00

RobertT wrote:
arnold cheshire wrote:yes they say £3500 but in reality would it be ?

That would be the contributions going in based on current full time basic pay and rates of 13.6% from RM and 6%(gross) from us.
So using the above wage figures, the yearly contributions into CDC/DBLSS would look something like this:

You - £937
RM - £3,122
Taxman - £440

With 60 or 70 percent loss for taking early

What you choose to do with your CDC pension is entirely up to you(within the rules).

If you were to take it early, you would see a reduction, but 60-70% is unlikely, unless you perhaps take it at 55?
You could also get a transfer value and move it into a DC scheme for drawdown, which might be better suited to your position?
You could even take it at NRA(perish the thought).

This is going off topic, but as far as I'm concerned, it doesn't really matter whether we're talking about the RMPP, CDC, RMDCP, the state pension or any other pension you may have. It'll be worth what it's worth when you access it and if that's not going to be enough or it doesn't do what you want, then it's up to you to do something about it.
That could be saving more, managing what you've got slightly differently(eg, drawdown), or resigning yourself to either living on less in retirement or working longer than you want to.

It used to be the case that you could work for 40 years and get a 'gold plated' pension without really thinking about it. But those days are gone I'm afraid, therefore turning your back on over £3,500 per year would be crazy. :crazy:

Thanks Robert T for the advice

Leaving the new pension

18 Apr 2019, 23:24

Would the LEL still apply for section C members, or is that to be abolished?

Leaving the new pension

19 Apr 2019, 05:45

heapsy wrote:Would the LEL still apply for section C members, or is that to be abolished?

All the literature we've been given about CDC says:

It will be separate from the RMPP.
It'll be 'one scheme for all'.
They'll be no LEL/LED reducing our pensionable pay.

Leaving the new pension

19 Apr 2019, 06:47

RobertT wrote:
heapsy wrote:Would the LEL still apply for section C members, or is that to be abolished?

All the literature we've been given about CDC says:

It will be separate from the RMPP.
It'll be 'one scheme for all'.
They'll be no LEL/LED reducing our pensionable pay.


Cheers for that. It has been that long since I'd read it, I can't remember. This alone would be an improvement for us section C members, but shouldn't be needed in the first place. As I'm sure you will agree. Still better than nothing.

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