Pension question.

banner · Post by **banner** » 15 Oct 2007, 22:21

Can someone please tell me what a final salary pension is and also a career average earnings pension is?

Post by **Paul Turnbull** » 15 Oct 2007, 22:26

a final salary pension is one that is a proportion of your final salary multiplied by the no of years you have paid in whereas the average is based on your average salary and is therefore usually inferior .

banner · Post by **banner** » 15 Oct 2007, 22:27

thanks

DirtyHarry · Post by **DirtyHarry** » 15 Oct 2007, 22:35

banner wrote:Can someone please tell me what a final salary pension is and also a career average earnings pension is?

Yep, a final salary scheme is the cream of the crop as far as company pensions are concerned, and it's the one Leighton & Crozier want to deny us.

A career average thingy pension, is the piss-poor relation Leighton & Crozier want to impose on us.

Sorry I can't be more technical, but it's late and I'm all shagged out.

Post by **baldrick** » 15 Oct 2007, 23:20

banner wrote:Can someone please tell me what a final salary pension is and also a career average earnings pension is?

RM's final pension salary scheme means that you get a pension based on the best pensionable pay year out of your final three years. If you were one of the old POSS members (Section A) you get 1/80th for every year of service.
So if your best pensionable pay year is Â£16k and you have 40 years service you get half your final pensionable pay - Â£8k pa pension. If you have 20 years service you would get a pension of Â£4k pa. and so on.
I think the POPS members (Section B) get 1/60th for every year of service, so they only need to do 30 years to get the half pay pension
Managers apparently get 1/45th for every year of service, so they only need to do 22.5 years to get a half pay pension.

A Career Average Revalued Pension is one based on the average pensionable pay during your entire length of service, so for most people it will inevitably mean a smaller pension as most peoples's pay increases every year.
The only people who might benefit are those who have been full time for most of their careers and then go part time in their last years. Or people who had been on a higher pensionable pay for most of their careers because they had pensionable allowances such as shift or driving allowances, but lost them or gave up the jobs which had those allowances
during their final years.

I am trying to explain this to the best of my understanding, but I'm not an expert on pensions so hope this is more or less correct - hope Jafferpants gets his computer fixed soon because I think he understands all this better.

Edward Hunter · Post by **Edward Hunter** » 16 Oct 2007, 10:19

do you still get the same lump sum with a final salary and a career average pension?

smartmarty · Post by **smartmarty** » 16 Oct 2007, 11:03

Edward Hunter wrote:do you still get the same lump sum with a final salary and a career average pension?

No. An example given at the last national brief was "a 40yr old with 20yrs service so far would lose at least Â£7k from their gratuity". Don't the calcuations, sorry.

terrace · Post by **terrace** » 16 Oct 2007, 11:30

Pension e-petiton
http://petitions.pm.gov.uk/Protect-pensions/

DirtyHarry · Post by **DirtyHarry** » 17 Oct 2007, 19:33

Edward Hunter wrote:do you still get the same lump sum with a final salary and a career average pension?

With the tossers now in charge, we're more likely to get a lump on the head, Ed.

Post by **baldrick** » 17 Oct 2007, 20:37

Edward Hunter wrote:do you still get the same lump sum with a final salary and a career average pension?

Obviously if the pension is smaller the lump sum would be smaller too.

bristolchris · Post by **bristolchris** » 17 Oct 2007, 20:39

terrace wrote:Pension e-petiton
http://petitions.pm.gov.uk/Protect-pensions/

Done.

ROYALMAILCHAT

Pension question.

Pension question.

Re: Pension question.

Re: Pension question.