Updated - Public pensions consultation (for all those affected by the change in pensions is 2015)

[Bootrip2]

I am having someone look over mine, but from what i can gather as im intending on taking it early it means a 15% reduction instead of 45% on lump sum and i may be able to cut hours before i go. Pensions are such a pain!

[tspill]

Originally Posted by Bootrip2

I am having someone look over mine, but from what i can gather as im intending on taking it early it means a 15% reduction instead of 45% on lump sum and i may be able to cut hours before i go. Pensions are such a pain!

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It really isnt as simple as this.

The reduction rates will be different on the old and new parts.
In most public service pensions, the old pension has an NRA of 60 so if retiring early the actuarial reductions will only be for a few years (hence the smaller %age.
In the newer schemes the NRA is your State Pension age - so 66/67/68. So the actuarial reductions are for many more years. At this stage this will know be for a few years.

I would try and understand the detail behind what advisors are saying (never just take them and face value). I have heard two horror stories in the past week of some of the things IFAs have said to people I know. Advice that wouldd have major lifestyle differences (in a very bad way should they have taken that advice). Absolutely frightening.

[Bootrip2]

I agree its not a decision to be taken lightly and everyones circumstances are so individual with responsibilities and outgoings etc, and need to cover as many eventualities too.

[Bootrip2]

Is there any more news on the consultation yet?

[Guest]

I didn't see anything yesterday. I had wondered if they would slide something out as part of the spending review. I saw press reports on the other pensions bits but not this.

Will have a dig in the spending review papers today.

[Bootrip2]

Just wondering about any more news on this, our Pensions/HR are denying any changes?

[Guest]

I don't think they have announced the outcome as yet ?

gov.uk/government/public...s-consultation

[Guest]

Originally Posted by Bootrip2

Just wondering about any more news on this, our Pensions/HR are denying any changes?

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If you are in a qualifying scheme and you are an impacted individual then I think that there will definitely be changes in your pension when you receive it, or at the very least a choice. As far as I can see that was all the consultation was about - when to make that choice.

Oh and the valuation changes, not a small thing, but techy. That will potentially change what people might pay in contributions but I wouldn't expect anything to come of that until new financial year I think. As it would be odd to do it mid year. But you never know!

So your pensions folks are right. No change for now. Or are they denying that the consultation happened? It may be just that your scheme falls outside it ? Presumably they could tell you whether it was in or out of scope.

[ChoppyGirl]

The theory behind it all seems easy enough but there is so much behind the scenes stuff to sort out ie what to do with transfers, deaths etc etc. An immediate detriment note had been sent out but unless the regulations are changed we can’t act on it yet.

[Guest]

Originally Posted by ChoppyGirl

The theory behind it all seems easy enough but there is so much behind the scenes stuff to sort out ie what to do with transfers, deaths etc etc. An immediate detriment note had been sent out but unless the regulations are changed we can’t act on it yet.

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I haven't seen that as am not back in work til tomorrow. Will be interested in what it says on the valuation Vis a vis the floor. What a farce that was. But I don't think McCloud shoul be costed into the reval.but still don't see how it can be afforded at a country level if it isn't.

Budgets 3rd March ?