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Cake or Crumbs

Warwickshire County Council. Warwickshire County Council Pension Fund Annual Meeting 2013. Cake or Crumbs. Frank Harding Pensions Officer Warwickshire County Council 28 November 2013. Warwickshire County Council. Ingredients. Auto enrolment includes ...

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Cake or Crumbs

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  1. Warwickshire County Council Warwickshire County CouncilPension Fund Annual Meeting 2013 Cake or Crumbs Frank Harding Pensions Officer Warwickshire County Council 28 November 2013

  2. Warwickshire County Council Ingredients Auto enrolment includes ... People with significant service – who wish they had joined sooner People approaching retirement – who wonder whether it’s worth joining People who want to delay joining – for another 3 years at least Delayed membership of the LGPS affect pensions but ... What do the numbers look like ? How do pensions compare with final salaries ? Local Government Earnings Survey 2012/13 ... 32% earn below £15,000 35% earn between £15,000 and £21,000 30% earn between £21,000 and £42,000 3% earn over £42,000 Imagine the LGPS CARE scheme for 3 people retiring at 66 ... Alex starts work on £12,000 and finishes on £15,000 Billie starts work on £12,000 and finishes on £21,000 Chris starts work on £12,000 and finishes on £42,000

  3. Warwickshire County Council The cake shrinks ( LGPS CARE scheme and constant prices ) Chris’s pension could be £32,200 compared to a final salary of £42,000 Billie’s pension could be £21,900 compared to a final salary of £21,000 Alex’s pension could be £19,000 compared to a final salary of £15,000 Pensions converge on the Basic State Pension of £5,740

  4. Warwickshire County Council Some have cherries others have crumbs of comfort Joining LGPS at 18 Joining LGPS at 38 Joining LGPS at 58 Pension £19,000 Alex Final Salary £15,000 Pension % Joining LGPS at Final Salary 18 38 58 LGPS 88%54%16% State 38% 38% 38% Combined 126% 92%54% Pension £13,800 Pension £8,200 Pension £21,900 Billie Final Salary £21,000 Pension % Joining LGPS at Final Salary 18 38 58 LGPS 77%50%16% State 27% 27% 27% Combined 104% 77%43% Pension £16,300 Pension £9,100 Chris Final Salary £42,000 Pension % Joining LGPS atFinal Salary 18 38 58 LGPS 63%45%15% State 14% 14% 14% Combined 77% 59%29% Pension £32,200 Pension £24,800 Pension £12,200

  5. Warwickshire County Council You can’t have your cake and eat it Joining LGPS at 18 Joining LGPS at 38 Joining LGPS at 58 Alex Final Salary £15,000 Joining Salary Contributions Missed contributions £12,000 £10 per week 4.40% after tax None £13,300 £11 per week 4.40% after tax 38% £14,600 £13 per week 4.64% after tax 81% £11,100 £23,800 Nil Billie Final Salary £21,000 Joining Salary Contributions Missed contributions £12,000 £10 per week 4.40% after tax None £15,800 £14 per week 4.64% after tax 35% £19,700 £17 per week 4.64% after tax 79% £12,600 £29,000 Nil Chris Final Salary £42,000 Joining Salary Contributions Missed contributions £12,000 £10 per week 4.40% after tax None £24,800 £25 per week 5.20% after tax 26% £37,500 £39 per week 5.44% after tax 74% Nil £17,300 £49,800

  6. Warwickshire County Council Summary Better sooner than later Better later than never

  7. Warwickshire County Council

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