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Author Topic: Company Pension  (Read 42105 times)

Cream Crackered

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Re: Company Pension
« Reply #75 on: 17-01-15, 11:31AM »
I have worked as a ga for this company for 25 years.
3 months ago I dropped 1 day going from full to part time. I knew this would affect my final salary pension, but with 12 years still to work I decided that it was worth it.
I don't understand pensions, but am I right in thinking that because the pension has now been scrapped and will now be paid out at today's salary for the sake of 3 months, rather than being obsored over 12 years, I have lost a lot of money.
If only I had had an inkling this was going to happen I would not have dropped a day yet.
T/l, pay freeze maybe, yes I expected, but always thought our pensions as safe, gutted.

oliver

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Re: Company Pension
« Reply #76 on: 17-01-15, 12:51PM »
The-vortex, thanks for the advice much appreciated,

stockrotateman

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Re: Company Pension
« Reply #77 on: 17-01-15, 05:14PM »
Denzil I too dropped a day three months ago but I also took my pension as well , the amount in your benefit report that state's how much you have earned up to now is your pension when you retire at state pension age when I took mine it went down by 300 a year less my 25% cash free lump sum.I did it because I want to have more time away from tosco also can look for another job, but if still at tosco next year will just join the new scheme.

Tesco bird

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Re: Company Pension
« Reply #78 on: 17-01-15, 07:16PM »
Could someone give any information about being retired due to Ill health. I'm not going to get any better and will constantly need time off. Been with company nearly 7 years. Many thanks

Nomad

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Re: Company Pension
« Reply #79 on: 17-01-15, 08:31PM »
You can be retired on ill health grounds and receive a partial pension, ie. what company pension you have accrued so far.  There is also retirement on a full pension ie. the pension you would have received if you had stayed with the company till retirement age, to receive this however you will require medical evidence/opinion that due to your medical condition you will never be able to find any type of gainful employment.
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antico

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Re: Company Pension
« Reply #80 on: 17-01-15, 08:33PM »
Details of ill health pension specific to you in your benefits book. More info =rep  or personnel.

the-vortex

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Re: Company Pension
« Reply #81 on: 18-01-15, 08:13AM »
@Denzil and @redders, the (still) current DB pension accrues annually.  Each year that you contribute gains you an annual pension income of 1.25% of that year's pay (not salary or basic but actual received pay including overtime).  This technically makes it an Average Income scheme rather than a Final Salary scheme.  Most DB schemes have, historically, based your pension benefit as an accrued percentage of your salary in your final year which benefits employees of businesses and government departments who get regular service related pay rises and makes their final year much better paid under normal circumstances.  Their benefit is usually restricted to contracted salary only and ignores overtime and quite often any regional pay allowances as well.

So don't worry about losing any pension benefit from previous years.
Loyalty is a one-way street!

Cream Crackered

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Re: Company Pension
« Reply #82 on: 18-01-15, 12:48PM »
Thanks for that Vortex, didn't understand any of it apart from the last line but it certainly puts my mind at rest.
Thank you.

jojo

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Re: Company Pension
« Reply #83 on: 18-01-15, 01:21PM »
Tesco will never be able to make up the pension deficit .As with my previous employers scheme which had the same deficit it will eventually pass into the PPF which is the pension protection fund.This will guarantee your pension but you will only receive 90% of it,however,you will be able to take a larger tax free lump sum from it.

Twochops

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Re: Company Pension
« Reply #84 on: 21-01-15, 03:59PM »
Tesco will never be able to make up the pension deficit .As with my previous employers scheme which had the same deficit it will eventually pass into the PPF which is the pension protection fund.This will guarantee your pension but you will only receive 90% of it,however,you will be able to take a larger tax free lump sum from it.

I think I might be right in that tesco have to compensate the perceived loss of benefit from the size of the accrued pot saved to the contributor .
So, in theory everyone still in the final salary pension could expect an offer pro-rata in £ as ex gratiia to stop the fund.in practice this is usually offered to make as first payment into a new pension arrangement , but could be taken as extra pay but subject to tax and n.i.
You never know , if you've got loads of service and a huge pot , ........


spikymagik

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Re: Company Pension
« Reply #86 on: 04-02-15, 09:09AM »
Hi all, with the exception of the Public Sector, so called 'unfunded' Pension's (ie. There is no 'pot' of money, all that is paid out comes out of general taxation) Defined Benefit Pensions have become unaffordable. That said about Defined Benefit Pensions, even the Public Sector have started to reform and incease personal contributions.  What I feel is a hope is that with Tesco's collective bargaining power ie. over 300,000 UK staff, the 'New' Tesco Pension will offer a significantly better deal then you are likely to get Privately or from most other Companies, hopefully.

seenitall

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Re: Company Pension
« Reply #87 on: 05-02-15, 01:54AM »
http://www.theguardian.com/business/2015/feb/02/john-lewis-ditches-final-salary-pension-staff-contribution-scheme


Reading the article carefully and some others out on the interweb), you'll notice that John Lewis will still offer a defined benefit final salary pension, but a smaller one alongside a defined contribution cash balance pension which requires employee contributions with company matching.  Headline does not match the article.