In message , Fergus O'Rourke wrote
If an employer has a final salary scheme and also puts money into the pot then it is unlikely the employer will contribute anything to a private pension.
Final Salary Pension scheme
Jun 24, 2009
22 Replies
No; yes[1]. There's long been a statutory cap on most such schemes and it's been cut to 2.5%. From the Explanatory Note to the 2008 Act:
"241. The overall effect of the amendments is to provide that accrued benefit attributable to pensionable service on or after the commencement day is to be revalued by the rate of inflation over the relevant revaluation period, capped at 2.5% per annum. Accrued benefit attributable to service before the commencement day is to be unaffected by the amendments and a cap of 5% per annum is to continue to be applied to accrued benefits for service between 1985 and the commencement day."
[1] sorry, what I really meant to say, in line with the statutory requirement to foster a no-blame culture in which everyone's contribution is not merely recognised and rewarded but selected for affirmative grovelling by any white male over 50, was that your understanding was both perfectly valid and an insightful comment on the inadequacy of my (no doubt culturally and sexually biased) previous attempt to communicate :(
Index linking depends on the scheme specifics - as does 'death in service' payments and widows pensions etc.
For example, I have just been advised that my RPI-linked pension will not be -1.2% this year but 0%. And that the offset 1.2% will not be clawed back next year.
Read the conditions very carefully. Then, if you want further advice, post them all here.
But it does look as though this is a gift horse. But even they can be terminal.
Flop
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