Superannuation Schemes

A number of local authorities had such schemes in place during the 60s and 70s.

I believe that you paid money in from your wages (before tax) and that it went in to a superannuation pot which you were entitled to as cash when you left - you did not have to buy an annuity.

Was this roughly it - did your cash pot attract interest - ie did you get out more than you put in?

If you still had money in such a scheme now - would the first 25% be tax free as per private pension funds?

Reply to
judith
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These schemes, which still exist, are known also as final salary schemes. Whether you contribute or not towards the benefits, the amount you get at retirement is not decided by any pot of money, but by reference to how many years you have been in the scheme and how big your final salary was. Generally they pay 1/80th of your final salary for each year you have been in the scheme, + a lump sum of 3 times the pension. So, if you've worked there for 40 years, you get 40/80ths of your final pay (i.e. half) + a lump sum of three times that pension.

You're right in that you did not have to buy an annuity, but the structure of the final salary pension is quite different to what are called money purchase schemes where (a) you have a pot of money of which you can take 25% as cash, and (b) you have to buy an annuity with the rest (generally).

HTH

Rob Graham

Reply to
Rob graham

I assume it's 3x the _annual_ pension?

Matti

Reply to
Matti Lamprhey

Correct.

Rob

Reply to
Rob graham

I'm in a similar position to the OP (presuambly), having paid about 5 years' worth of superann to the Universities Superannuation Scheme back in the 80s. What you can do is contact the provider and ask them how much they'd pay if you transferred your contributions over to another (your current?) pension plan... almost definitely not advisable to actually do as anyone with anything in a final salary scheme is usually well-advised to hang on to it; however it does at least give you a figure which you can add to whatever other pension arrangements you have, in order to get a feel for the size of your current 'pot'.

David

Reply to
Lobster

Technically speaking, you ask for a transfer value (and you ask the trustees of the superann scheme). This does not take account of what your contributions were. It is calculated by reference to what the scheme has to provide you when you retire. Actuaries work out how much the cost is to the scheme to provide these benefits and it will give you this now (to put into a personal pension of some sort). Because of the way the calculation is done the transfer value can change over time, either up or down. This won't change what you get at the end, however.

Whether you actually make the transfer is down to you, but I can tell you that the issues involved are not for the faint-hearted. Normally they would be debated in a report from an IFA who deals in pension transfers.

Rob Graham

Reply to
Rob graham

Also bear in mind that to become an actuary you have to have an MA in mathematics and be a Fellow of The Institute of Actuaries. Then, suitably qualified, you can have the letters MAFIA after your name.

;-)

In fairness the actuaries I've known have been good blokes - a bit more adventurous and outgoing than accountants in that they look at your knee when talking to you, rather than your shoes.

Reply to
®i©ardo

Or so you've been told by your female acquiantances who have attractive knees and wear miniskirts.

Reply to
Ronald Raygun

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