Pensions

 

 

 

 

 

Briefing on the proposal for creating a flat rate state  pension.
Public sector  workers who have opted out of the ‘earnings related state second pension’ into  say the LGPS or NHS pension schemes, will have a deduction made for so having  opted out, therefore preventing attainment of the full flat rate of £144, unless  they make extra credit payments. Effectively being penalised for having  contributed to a public sector occupational pension scheme.
Public sector  workers will be allowed to accrue more credits from 2017,  until they  retire and will be paid more than the basic £107 a week in line with those extra  payments until they save enough to qualify for the full £144 weekly rate. We do  not know at this stage what those payments will be.
Overall, the  proposed flat rate state pension will mean higher national insurance  contributions  for workers, and the minimum number of years to qualify for  the full flat rate pension, will rise from 30 to 35 years.
The message,  pay more, get less, work longer comes to mind.

For further updates please consult the National website at: http://www.unison.org.uk/pensions/lgps.asp

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