truman Posted October 7, 2010 Share Posted October 7, 2010 My gf pays around 3% - from what i read yesterday the 1.5% is civil servants as in whitehall types. Maybe, but still public sector though...their pension still has to be paid... Link to comment Share on other sites More sharing options...
crookesey Posted October 7, 2010 Share Posted October 7, 2010 I'm sure I read that the civil service only pay 1.5% ? "..However, depending on what workers earn and which scheme they are part of, not all scheme members would be asked to double their contributions. Members of the police scheme already pay 9pc of their salary on average, one of the highest rates in the public sector and six times the typical contribution from a civil service scheme member...." Senior civil servants pay nothing towards their pension benefits, the 1.50% gross, is in respect of death in service costs. If someone does pay 9%, this is probably 5.40% after 40% tax relief. How small should their contribution be, in order for them to retire at age 50/55 on a cracking inflation linked pension? Link to comment Share on other sites More sharing options...
truman Posted October 7, 2010 Share Posted October 7, 2010 Senior civil servants pay nothing towards their pension benefits, the 1.50% gross, is in respect of death in service costs. Seems fair then Link to comment Share on other sites More sharing options...
milquetoast1 Posted October 7, 2010 Share Posted October 7, 2010 Who's getting these gold plated pensions? Someone I know worked for 27 years in a fairly senior position and their pension is less than £9k a year, hardly the gold plating that the right wing press seem intent on persuading is rampant. A pension of 'only' £9k will require a fund of 'only' circa £165k. Of course, such an annuity will be single life, with no spouses benefits, such as those provided to the person you know. A pension like this, providing 'only' £9k a year, will require a fund of 'only' circa £225k. Link to comment Share on other sites More sharing options...
foxy lady Posted October 7, 2010 Share Posted October 7, 2010 Senior civil servants pay nothing towards their pension benefits, the 1.50% gross, is in respect of death in service costs. If someone does pay 9%, this is probably 5.40% after 40% tax relief. How small should their contribution be, in order for them to retire at age 50/55 on a cracking inflation linked pension? The major fiddle with these final salary pensions was that someone in a lowly rank suddenly got promoted to a high salary just before retirement ensuring that the tax payers got an even larger burden of paying towards public sector pensions. Link to comment Share on other sites More sharing options...
truman Posted October 7, 2010 Share Posted October 7, 2010 The major fiddle with these final salary pensions was that someone in a lowly rank suddenly got promoted to a high salary just before retirement ensuring that the tax payers got an even larger burden of paying towards public sector pensions. Yep,Hutton's report today recommended that an average salary over the time of employment be used rather than a final salary figure.. Link to comment Share on other sites More sharing options...
truman Posted October 7, 2010 Share Posted October 7, 2010 Yeah, but even "normal" public sector workers are amazed at whitehall perks I wouldn't mind paying 5 or 6 percent for a final salary scheme... Link to comment Share on other sites More sharing options...
crookesey Posted October 7, 2010 Share Posted October 7, 2010 A pension of 'only' £9k will require a fund of 'only' circa £165k. Of course, such an annuity will be single life, with no spouses benefits, such as those provided to the person you know. A pension like this, providing 'only' £9k a year, will require a fund of 'only' circa £225k. Public sector pensions don't have funds, and of course would have spouses benefits. Link to comment Share on other sites More sharing options...
truman Posted October 7, 2010 Share Posted October 7, 2010 Public sector pensions don't have funds, Therein lies the problem...PS pensions are a big Ponzi scheme... Link to comment Share on other sites More sharing options...
crookesey Posted October 7, 2010 Share Posted October 7, 2010 The major fiddle with these final salary pensions was that someone in a lowly rank suddenly got promoted to a high salary just before retirement ensuring that the tax payers got an even larger burden of paying towards public sector pensions. The police force are masters of it. Link to comment Share on other sites More sharing options...
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