Pension scheme - right to buy pension - inequitable purchase price

Situation is this.

After recent case law and tribunal decisions, part time lecturers at colleges of further education were granted the right to purchase a pension entitlement for past service during which they were prevented from joining the Teacher's pension scheme

Someone I know is in this position. All the basic numbers, salary, years of service etc. have been agreed by both sides. The college has now given a figure for purchasing the pension entitlement which is

214% more than would have been paid at 6% of salary (the rate in force during the period in question).

I realise that the question of interest needs to come into the calculation, but 214% seems inequitable and far in excess of any reasonable or fair sum.

Question is this. Are there any guidelines or does anyone know of any precedents or authorities which could be used to argue this, either with the pension provider or with an oversight body capable of making a different ruling?

Usual TIA

RB __

Reply to
RB-MC
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Do a 'future value' calculation for the payments you are buying at house mortgage interest rates. You can do it in a few moments using a spreadsheet program. The result will probably be similar to your 214%.

Reply to
Peter

This is not advice ...

Off - hand, it seems inequitable to me.

It would appear the issue of whether he should or should not have admitted to the pension scheme has been settled.

In any particular instance it would plainly depend on how many years back the settlement had to be accrued for. But with interest rates as they are 214% would be a lot of years.

If it is a final salary scheme he should query the basis that he is being permitted to buy into the scheme.

DG

Reply to
Derek ^

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