Scott1234 wrote:It does reference CPI (consumer price index?). It’s al a bit over my head if I’m honest and it’s making me realise I’m very glad I came here for advice from you sages!
Here’s what it says about CPI. Hopefully it sheds a bit more light on the figure it’s giving me.
While you are an Active Member, the rate of revaluation applied at the end of each Scheme Year (31 March) to the earned pension accrued for that year is the movement in the Consumer Price Index (CPI) + 1.25%. The revalued amount forms the opening balance of your pension for the next Scheme Year.
For each Scheme Year that you are an Active Member of the 2015 Scheme, your earned pension is 1/55.3th of the value of your Pensionable Earnings for that Scheme Year (uprated by CPI + 1.25%).
Pensions in payment to members are increased every year in line with CPI under the Pensions (Increase) Act 1971
The CPI bit, I’m interpreting this as the pension will track this even if my salary increases don’t. Is this correct?
Not quite. It isn't tracking CPI whilst you are 'paying into' the scheme, it is tracking CPI
PLUS increasing by 1.25%.
So year 1 then 1/55.3 of your £41k salary goes into the amount of pension that will be paid when you retire, so £741.41.
At the end of year 1 then the £741.41 is increased by CPI plus 1.25%, so if CPI was say 3% then it would be increased by 4.25%, so £31.51 and it would stand at £772.92.
Year 2 if you got say a 2% pay rise so salary is now £41,820 then £756.24 goes into your pension taking it to £1529.16 and then increased again at the end of the year by CPI plus 1.25%.
And so on.
Scott1234 wrote:The problem with that is if you leave you cannot take the pension until 67. If you’re in, you can go at 55 if you wish and will accept your portion of the pension.
You can take it before 67, it is just that it is actuarially reduced if you take it before 67 -
https://assets.publishing.service.gov.u ... ay2015.pdfYes the 2015 pension isn't as good as the previous pension, but that doesn't mean it isn't a good pension.
Scott1234 wrote:It’s as another poster mentioned. They’ve already moved the goalposts once. I’ve no doubt that over the next 30 years they’ll do it again.
Quite possibly, although in the 2015 changes the government claimed they would not need to change the scheme for 20 years, but then we know how politicians behave.
However the previous changes to government worker pensions have only impacted pensions accrued after the change and not pensions accrued before the change, so whatever you accrue before any change will be safe.
Also have you been in the service long enough to benefit from the McCloud judgement which may benefit you for the period from 2015 when the new scheme was introduced to 2022 when they will have to introduce the new scheme again.