Sep 2024
10:24am, 5 Sep 2024
11,578 posts
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Fields
Why do you want workers pension rights to be reduced? You don’t seem to be able to answer this. I can understand why those who own the means of production do as tax for it comes out of their profit from exploiting labour. But why do you Cheg? Are you taken in by the right wing media lines that they’re gold plated? Why are workers pensions unsustainable but obscene profit is ok? Why do you have no solidarity with your fellow workers? |
Sep 2024
10:28am, 5 Sep 2024
45,936 posts
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SPR
It's a pretty important distinction given the change to average salary schemes was to make things more affordable in the same way that private companies no longer offer final salary pensions.
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Sep 2024
10:33am, 5 Sep 2024
17,741 posts
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jda
I agree that public sector pensions are relatively good for many, but it's just a partial quid pro quo for the poor pay (again, for many). It's basically deferred salary. Eg my wife was paid so little she didn't even have to start to pay back her student loan for a few years - and that was with a PhD, not just an undergrad degree. My recently-retired public sector pals were amused to note that their recent annual pension rises were greater than what they got in salary rise over the last few years of work. After a career in quasi-public sector (govt agency research labs) my wife and I certainly don't have much of a pension coming, but were fortunately in a position to save outside of that - mostly through working abroad at roughly double the salary that our UK-based colleagues enjoyed, coupled with being two full-time adults with no dependents. |
Sep 2024
10:35am, 5 Sep 2024
4,450 posts
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Cheg
The difference between average and final is not huge SPR. Here is the link if you want some detail teacherspensions.co.uk In the link I have sent, note the following: Teachers Pension "Average salary only applies to benefits accrued in the final salary arrangement" "Average salary is the salary used in the calculation of your final salary benefits" Average salary is calculated using the better of the following calculations: - The salaries for the last 10 pensionable years. These are increased at each salary change to current day value. The average of the best consecutive three years re-valued salaries in those 10 years is used. - The pensionable salary received in the last 12 months of employment before the date of retirement. Looking at the above. I think the term final salary scheme is quite appropriate. In fact, the average is only there if you decided to wind down, and perhaps do reduced days as retirement approached and so was there to prevent the 'final' salary disadvantaging you. Next. |
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Sep 2024
10:40am, 5 Sep 2024
17,742 posts
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jda
I don't think that is how average salary is generally defined in such schemes.
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Sep 2024
10:41am, 5 Sep 2024
21,793 posts
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Cerrertonia
SPR wrote: I think one of the things that gets in the way of these discussions is that many recipients of public sector pensions don't realise how incredibly valuable/ expensive they are. Annuity rates have gone up recently, but a few years back, you would've needed approaching £2 million to buy the kinds of pensions that some of my GP, university lecturer and army officer friends were collecting. They don't think of themselves as multi-millionaires, but in a sense they are.
It's a pretty important distinction given the change to average salary schemes was to make things more affordable in the same way that private companies no longer offer final salary pensions. |
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Sep 2024
10:45am, 5 Sep 2024
17,743 posts
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jda
Ok I think you are misunderstanding that. That note id describing the calculation of salary for the final salary scheme. All it means is that the "final salary" is not that applying on your last day, but some less volatile estimate at the end of your career. "Career average" is the newer pension. That is actually an average over your working life. |
Sep 2024
10:47am, 5 Sep 2024
33,039 posts
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Johnny Blaze
I'd take a DB pension any day of the week!
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Sep 2024
10:49am, 5 Sep 2024
45,937 posts
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SPR
@Cheg jda wrote: I don't think that is how average salary is generally defined in such schemes. I think what you're reading is a modified final salary scheme (last 10 years before retirement), presumably to stop last year before retirement promotions. Career average salary schemes are what most schemes have been modified to AIUI. If that's the current scheme for teachers then it seems it may be one of the few final salary schemes that exists. |
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Sep 2024
10:53am, 5 Sep 2024
4,451 posts
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Cheg
Apology accepted.
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