verylittlehelps

Very Little Helps => All departments => Topic started by: burns2015 on 20-04-15, 08:22AM

Title: Pension Changes
Post by: burns2015 on 20-04-15, 08:22AM
Today marks the start of the 90 day Consultation Period, Here is the Q&A from todays T5.


Q1. What changes are you proposing to make?
To close all sections of the current pension scheme, including Pension Builder and Final Salary, to all colleagues and replace it with a new defined contribution scheme.
Q2.  What is a defined contribution (DC) scheme?
In a DC scheme you build up your own retirement savings. The amount you build up depends on how much you and Tesco have paid in and how your money grows over that time.  When you retire, you can choose how to take these savings – whether as a regular income i.e. pension, a bit at a time (drawdown) or all as cash. Or a mixture of these.
Q3. How much will the new scheme cost me and how much will Tesco pay?
You can choose to pay from 4 % of your salary into the new scheme and Tesco will match what you pay, up to 5%.
Q4. How much am I paying into the scheme now?
Members of the Pension Builder section and Final Salary section are currently paying 5% and 7% into the scheme respectively.
Q5. Can I pay more into the scheme if I want to?
Yes, you can choose to pay as much of your salary as you want to, but Tesco will only match up to 5%.  For example, if you pay in £10 Tesco will pay in £10 up to 5% of your salary every year.
Q6.  How much pension will I get in the new scheme?
It's difficult to be exact about how much you'll receive from the new scheme because the amount you build up is specific to you and the choices you make. To help, we've created a calculator on www.FutureTescoPensions.com (http://www.futuretescopensions.com) (user id: Tesco Password: Info2015) to give you an idea of what you could expect to receive, based on your age and salary.
Q7. What is going to happen to my existing pension?
The proposed changes will not reduce any Tesco pension that you've already built up. It only affects how this pension will increase before you retire, and how you'll build up retirement savings in the future. Your existing pension will stay in the Scheme and be looked after by the Trustee until you're ready to take it.
Q8. Why are you making these changes?
Over recent years the cost and uncertainty of providing this type of scheme has increased significantly. At the same time, our business is less able to absorb these extra costs as we face tougher market conditions and lower profits.
Q9. When will the scheme close, if the proposals go ahead?
If the changes go ahead, we propose to launch a new defined contribution scheme for all colleagues as soon as we are able to achieve this, but no later than February 2016.


Q10. I'm thinking of taking my pension soon, do I need to do anything now because a consultation has been announced?
No, nothing has changed in the Scheme and won't change until after the consultation has concluded later in the year.

Q11. Can I still join the pension scheme or is it too late?
The scheme is open as usual and all Tesco colleagues can join the Scheme until the scheme is closed.

Q12. Will you be consulting with our unions on the changes?
Yes. We will be working closely with your unions throughout the whole of the consultation process.
Q13. Will I receive life cover in the new scheme?
Yes. If you die while you're still employed by Tesco and paying into the scheme, your dependants will receive a lump sum payment worth four times your salary. Plus a refund of everything that you've saved - including Tesco's contributions.  For any other benefits, e.g. ill health, please refer to the consultation letter.
Q14. If I haven't received a letter, what can I do?
If you haven't received a letter by 30 April, please call the consultation helpline on 0345 610 6379 who will be able to help.











Title: Re: Pension Changes
Post by: Tegai on 20-04-15, 08:26AM
What does "up to 5%" mean? Could be 0.5%?
Title: Re: Pension Changes
Post by: burns2015 on 20-04-15, 08:33AM
means that's maximum Tesco will pay for example you choose to pay in 6%  Tesco will still only pay 5%.
Title: Re: Pension Changes
Post by: Duracell on 20-04-15, 08:35AM
The maximum the company will contribute is £50 per every thousand earned. Even if you elect to pay £100 per thousand earned.
Title: Re: Pension Changes
Post by: Loki on 20-04-15, 09:03AM
Statement from Usdaw:

Tesco Pension Scheme - Proposed Changes

Dear colleagues,

As you are aware at the beginning of the year Tesco made an announcement which included proposals to close the Defined Benefit Pension Scheme to all staff.

There is a legal requirement for Tesco to enter into meaningful consultation with Usdaw  regarding this proposal.

As a result of discussions held with the company over recent weeks, we wanted to update you on the following:

- A consultative group has been established which includes Usdaw/SATA
  representatives from Stores, Distribution, Customer Service Centres, Tesco Bank
  and Usdaw Officials.

- A timetable for formal discussion and consultation has been jointly agreed.

- Formal pension consultation will start from Monday 20 April which all members
  of the pension scheme will have the opportunity to participate in.

What will happen from Monday 20 April

A personalised individual letter from Tesco will be posted to the home address of each member of the Pension Scheme. The letter will outline the following information:

- Why the company is proposing to make changes to your pension.

- What the company is proposing for the future.

- How individuals can find out more information.

- How individuals can give their views, feedback and raise questions during the
  consultation period.

The formal consultation period will run for a minimum period of 90 days. Usdaw would encourage all members of the Tesco Pension Scheme to participate in the consultation process and submit their views and feedback which will form part of the discussions.

Feedback should be done via the communication channels that Tesco have put in place, or via Usdaw's Tesco Support Team at tesco.support@usdaw.org.uk

Consultative Group

The consultative group will consider:

- The rationale for the proposed changes and the business case being put forward
   by Tesco;

- What can be done to try and maintain the defined benefit pension scheme; and

- The defined contribution scheme, which Tesco are proposing to introduce.

Usdaw's Pension Officer, Debra Blow will be briefing and supporting the Consultation Group throughout the process.

Usdaw has also appointed independent advisers who will provide an independent view of the company's proposals.

We understand that everyone will be concerned about the proposed changes to the defined benefits scheme. However, it is important to remember, if you are an existing member of the Pension Scheme that the pension you have already built up will not be affected.

We will keep you updated through the official Usdaw and Tesco communication channels as discussions progress.

Best Regards,

Pauline Foulkes, National Officer
Joanne McGuinness, National Officer
Title: Re: Pension Changes
Post by: Tenko on 20-04-15, 09:36AM
Tesco will use the lack of response on the feedback channel that they will inevitably receive as their main reason to forge ahead with the changes.
You have to encourage as many responses as possible.I would suggest that a carefully thought out response could be posted here for people to use and send.
Title: Re: Pension Changes
Post by: Loki on 20-04-15, 10:36AM
Quote
- Formal pension consultation will start from Monday 20 April which all members
  of the pension scheme will have the opportunity to participate in.

Be that as it may, I expect Usdaw members to be balloted once the consultation process has come to an end.

Having said that, why are my teeth clenched, fingernails dug into the palms of my hands and despite the warm sunshine, a chill running down my spine?

After all, with Usdaw's deafening silence during the entirity of the restructure consultation process and its aftermath, one can only remain cynical regarding their so called involvement during this so called consultation regarding the annihilation of our defined benefit pension scheme. A pension scheme, I may add, of which attracted many of us to work for Tesco in the first place.

The mere fact that the word consultation is being used instead of negotiation has rung some rather large bells. After all, this is no small change!
Title: Re: Pension Changes
Post by: Mr Grumpy on 20-04-15, 10:59AM
Over the years when other job opportinuties have arrived, our pension has been a big tipping point with me staying with the company.  I fear usdaw will not ballot the members over these sustantian changes, every other union in the uk would most definately be battoting. Yet again like loki.has said, consultation instead of negotiatons makes my heart sink
Title: Re: Pension Changes
Post by: The Mrs on 20-04-15, 01:18PM
Loki, you are right to clench your teeth. What is being introduced - and lets not kid ourselves, the decision has already been made and last weeks meetings were NOT meaningful consultations - is absolutely rubbish!

Lets have some figures shall we? Here goes:

At the moment some people in defined benefits (the older type) are paying 7% into the pension and Tesco pay 11% in.

On the new contribution scheme we pay 4 or 5% and Tesco pay up to 5%. That's a big drop from before.

To give you an idea of what this could mean if you are 40 and pay 5% for 21 years, retiring at 61 you will receive a pot of £53000.

Last week at the meeting reps were told that you would then be given this pot to go and buy yourself a pension with.

Basically it's nothing more than a savings account.

Tesco will be using your money to boost the business.

Death in service will be extremely reduced.

These are fundamental changes to all Terms and Conditions.

Those reps from DC's, Tesco Bank and the Call Centres were very unhappy.

I'm sorry to report that Store reps WERE SATISFIED with this.

DC's will definitely be balloting on this. I doubt Stores will be given this opportunity.
Title: Re: Pension Changes
Post by: Loki on 20-04-15, 02:22PM
With reference to the Store Reps involved....

[attachment deleted by admin]
Title: Re: Pension Changes
Post by: pike stupidboy! on 20-04-15, 03:04PM
I worry like Loki that "consultation " was not used untill we were in the meeting hastily arranged this morning as the phrase used was " we have a briefing on pensions in a bit will you attend ?"

Yes and there we were all 35 of us waiting for the script to be read out when along came the phrase

" you are now entering into a 90 day consultation " WTF. ??  Oh how open and honest , really do you think the majority of the workforce understand enough to question and give feedback on a pension system ? Enough to make a difference I think not ! its a done deal .....

Title: Re: Pension Changes
Post by: gytha_ogg on 20-04-15, 04:55PM
Could someone possibly explain, in simple terms, exactly what the changes will mean to the average bod?
Title: Re: Pension Changes
Post by: Fair play on 20-04-15, 05:04PM
You will get less money when you retire. noware near as good as the old pensions. Don't think I will bother to be in this new one
Title: Re: Pension Changes
Post by: penguin on 20-04-15, 05:16PM
Agree with all that is being said, this will happen no matter what the "consulation" is nothing more than the company going through the motions. Drastic Dave would be well advised to stop sending e-mails and putting videos on youtube saying how he values us all and wants to do his best for us. After today even the few people who normally fall for such c**p in our store could see what is really going on. One can only wonder what will be the next thing the company take from us as theres not a lot left is there.
Title: Re: Pension Changes
Post by: burns2015 on 20-04-15, 05:37PM
All Dave rattles on about is for the good of our customers. So its f*** the Staff and let them suffer in there retirement just so they can knock 10p off a loaf of bread.
Title: Re: Pension Changes
Post by: keithwill73 on 20-04-15, 05:58PM
Its like U S D A W total c**p and a waste of space .
Title: Re: Pension Changes
Post by: gomezz on 20-04-15, 07:35PM
If you can afford the 5% contributions then treat the new scheme as a long term savings plan which has much a better return than normally available due to Tesco matching the contributions (up to 5%).
Title: Re: Pension Changes
Post by: redders on 20-04-15, 08:22PM
Anybody read usdaw comments in the grocer, we would encourage every member of the pension scheme to to participate in the consultation and give there feedback we will try to overturn this decision by tosco.yeah right.
Title: Re: Pension Changes
Post by: Loki on 20-04-15, 08:52PM
So why do I get the feeling that Usdaw will cherry pick emails and twist the overall comments to save face?

This is not a minor change!

A ballot of members is what's needed at the end of the consultation to decide whether or not the proposals are accepted.

Grave concerns I have with the word "consultation" in place of negotiation.



Title: Re: Pension Changes
Post by: The Mrs on 20-04-15, 09:12PM
Quote from: gomezz on 20-04-15, 07:35PM
If you can afford the 5% contributions then treat the new scheme as a long term savings plan which has much a better return than normally available due to Tesco matching the contributions (up to 5%).

But it's NOT a long term savings plan - it's a pension and I don't see why it should be thought of in any other way. That's a cop out and is exactly how Tesco will hope people see it.

So it's better than nothing, so that's ok then is it? Well to me it's not, because it's a whole bloody lot worse than what staff have now. This is the straw that will break the camels back. There is no longer any worthwhile reason to stay employed by Tesco.

Mr Lewis - you can say goodbye to the majority of your experienced staff.

And what will you do if the majority of the over 55's take retirement now and take the whole of their pension pot with them, as is now their right? If you think the £5Billion hole is bad now just wait and see how bad it can really get!
Title: Re: Pension Changes
Post by: Fair play on 20-04-15, 09:18PM
You are so write The Mrs I will be one of those staff after twenty years I've just about had enough
Title: Re: Pension Changes
Post by: valleyboy on 20-04-15, 09:27PM
And  who's called for a branch meeting to tell usdaw what to do?
Title: Re: Pension Changes
Post by: Morris999 on 20-04-15, 09:49PM
Considering they changed the pension only 3 years ago to safe guard its future for all employees current and future this is a disgrace.

Worked mine out on there calculator earlier today and I'm going to be £4.5k a year worse off unless I pay in over £150 extra a month for the rest of my career due to my age!
Not impressed!
Title: Re: Pension Changes
Post by: AlexM on 21-04-15, 12:03AM
The pension scheme was one of the last things keeping experienced, loyal staff loyal to the company. This has pretty much washed that away.
The death in service award has gone from being worth 4x salary to being worth 5x your current pension contributions (ie knock a zero off the end of the figure).
The actual pension will be worth 50% of what it was (according to my last benefits report & the new pension website).

There is now nothing left that makes it worth staying with the company. The wife & I are awaiting our letters & will then be going to see an independant financial advisor to see if we'd be better off paying into the Tosco scheme or a private one.

And as for consultation: it'll be waved through by Usdaw just like everything else.
In fact, I might cease my £10 a month to Usdaw & use it to save for my retirement instead.
Title: Re: Pension Changes
Post by: burns2015 on 21-04-15, 12:29AM
Alex the death in service is currently 3 times your salary its actually changing to 4 times your salary.
Title: Re: Pension Changes
Post by: silver surfer on 21-04-15, 12:45AM
Let's get a few facts straight here. Consulation v Negotiaton. Under the law proposed changes to a pension scheme there must be a period of CONSULTATION not negotiation - as determined by the Pensions regulator. See http://www.thepensionsregulator.gov.uk/docs/employer-duty-to-consult-on-scheme-changes.pdf. (http://www.thepensionsregulator.gov.uk/docs/employer-duty-to-consult-on-scheme-changes.pdf.) There is a lot of bad mouthng the Unon on here but unless Tesco are breaking the law (and it appears that they are not) if Tesco want to change the scheme the the Union is pretty powerless to stop it. Having said that I would support the idea of a ballot.

QuoteAnd what will you do if the majority of the over 55's take retirement now and take the whole of their pension pot with them, as is now their right

The above statement is wholly incorrect and you should not be making statements like this which could mislead colleagues. The Tesco Fnal Salary and Pension Builder schemes are Defined Benefit Schemes they do not have a "pot" of money and you cannot draw out the whole lot. You have a pension based on how long you have been in the scheme and how much you earned. Once you have your pension it is yours until you die and can never run out. The changes to pension legislation applies to Defined Contribution schemes. Dont get your hopes up about taking everything out it won't happen. The only way you could get your hands on the money would be to get a cash equivelent transfer value of your Tesco and transfer it to another defined contribution  pension scheme to accept it. Once that is done you could take the lot but bear in mind that a transfer value could be about 40% less of the value it would be if left in the current Tesco scheme. Also when you cash it in only 25% tax free - if you take anymore you will be taxed at your marginal rate and could find that 55% of you "pot" has gone in tax.

See especially point 7 in the article below. Things are bad enough as it is without people on here spouting a load of hogwash.
http://www.theguardian.com/money/2015/mar/02/ten-things-you-will-or-will-not-be-able-to-do-under-the-new-pension-rules (http://www.theguardian.com/money/2015/mar/02/ten-things-you-will-or-will-not-be-able-to-do-under-the-new-pension-rules)
Title: Re: Pension Changes
Post by: The Mrs on 21-04-15, 01:01AM
My apologies. So angry right now I'm clearly not thinking straight.

There is the cash lump sum that can be taken.
Title: Re: Pension Changes
Post by: Ethelredtheunready on 21-04-15, 02:12AM
re pike stupidboy!'s  comment "do you think the majority of the workforce understand enough to question and give feedback on a pension system ? Enough to make a difference I think not !"

I for one do not and I would be VERY grateful if someone who understands pensions would or could take the tlime to write an article explaining them
Title: Re: Pension Changes
Post by: gytha_ogg on 21-04-15, 06:07AM
Quote from: burns2015 on 21-04-15, 12:29AM
Alex the death in service is currently 3 times your salary its actually changing to 4 times your salary.

Um... I don't think you're allowed to say positive things on here - you just have to spout anger with little to back it up.
I see nobody has answered my previous question in any useful way.
Title: Re: Pension Changes
Post by: AlexM on 21-04-15, 07:45AM
Quote from: burns2015 on 21-04-15, 12:29AM
Alex the death in service is currently 3 times your salary its actually changing to 4 times your salary.

"If you die before your pension starts...
Your family will receive a tax-free cash lump sum worth five times the pension you've already built up.
Your spouse or civil partner will also receive a regular income for the rest of their lives, based on 60% of the pension you've already built up.
If you have children, they will receive a regular pension worth 25% of the pension you've already built up (40% for two or more children) until they are 16, or 23 if they are in full time education or Trustee approved training."

Forgive me if I have misunderstood the above but suggests something a lot different than what you state. I took it to mean that if I die and I've only managed to build a pension of £2k a year then my family will get a £10k payout.
5x the salary would be considerably more.
Title: Re: Pension Changes
Post by: burns2015 on 21-04-15, 09:16AM
Alex q13 of the Q&A that's goes with briefing

Q13. Will I receive life cover in the new scheme?
Yes. If you die while you're still employed by Tesco and paying into the scheme, your dependants will receive a lump sum payment worth four times your salary. Plus a refund of everything that you've saved - including Tesco's contributions.  For any other benefits, e.g. ill health, please refer to the consultation letter
Title: Re: Pension Changes
Post by: burns2015 on 21-04-15, 09:18AM
Quote from: gytha_ogg on 21-04-15, 06:07AM
Quote from: burns2015 on 21-04-15, 12:29AM
Alex the death in service is currently 3 times your salary its actually changing to 4 times your salary.

Um... I don't think you're allowed to say positive things on here - you just have to spout anger with little to back it up.
I see nobody has answered my previous question in any useful way.
I don't see dieing as being positive. Well unless we all decide to start faking our own deaths as it would be only way we get to spend the money
Title: Re: Pension Changes
Post by: Nomad on 21-04-15, 09:36AM
http://www.thegrocer.co.uk/channels/supermarkets/tesco-pension-changes-to-be-fought-by-union/517275.article (http://www.thegrocer.co.uk/channels/supermarkets/tesco-pension-changes-to-be-fought-by-union/517275.article)

8-)  8-)
Title: Re: Pension Changes
Post by: gomezz on 21-04-15, 09:59AM
Quote from: The Mrs on 20-04-15, 09:12PMSo it's better than nothing, so that's ok then is it?
No it is not OK.  I was taking the pragmatic view of how to deal with it if, as is almost certain, it is how things will be.
Title: Re: Pension Changes
Post by: gytha_ogg on 21-04-15, 10:44AM
Quote from: burns2015 on 21-04-15, 09:18AM
Quote from: gytha_ogg on 21-04-15, 06:07AM
Quote from: burns2015 on 21-04-15, 12:29AM
Alex the death in service is currently 3 times your salary its actually changing to 4 times your salary.

Um... I don't think you're allowed to say positive things on here - you just have to spout anger with little to back it up.
I see nobody has answered my previous question in any useful way.
I don't see dieing as being positive. Well unless we all decide to start faking our own deaths as it would be only way we get to spend the money


The benefit to others if you happen to die is increasing, yes? That seems a fairly positive thing to me.
Title: Re: Pension Changes
Post by: Duracell on 21-04-15, 05:43PM
The statement made that the benefits you have built up in the current scheme will be unaffected is not correct.

The life cover lump sum  and spouse/dependant income will not be paid in the event of death in service when the scheme is closed as to qualify for this benefit you must be paying into the scheme as shown in a previous post.

The new scheme will pay 4x's you salary plus contributions made in the event of Death in service, however there is no mention of a partners/dependants regular income each year.

Some think that both schemes will pay out for death in service, this benefit in any pension only pays out if your are paying into the scheme at the time of death, so both the defined benefit scheme that they are looking to close will NOT pay out for death in service after its closed to contributions the scheme rules doesn't allow it.

Proposed New scheme, no mention of spouse/dependants regular income.

Title: Re: Pension Changes
Post by: AlexM on 21-04-15, 07:13PM
It does seem very confusing.

Has anyone received their letters yet? I am eager to find out if the company pension really is still competitive or whether it would be better going eslsewhere.
Title: Re: Pension Changes
Post by: seenitall on 21-04-15, 11:37PM
The general rule is that a company (defined contribution) pension where the employer makes a contribution is almost always more competitive than any scheme elsewhere. There are very few situations where this is not true (e.g. close or past retirement age and below income tax threshold, or you have excessive short term/expensive debt in which case no pension payment at all may be better approach, or just need a few extra quid for a year or two to save for a house deposit)

Many private pensions don't include a "death in service" benefit. 

Yes, the new scheme is less good than the previous defined benefit (annual salary averaged with uplift scheme sometimes called a CARE).  Nothing you can do about that.  And Tesco was one of the last few private defined benefit schemes in any business in the UK, not just retail.  (And I believe the only other retailer defined benefit scheme still running is John Lewis/Waitrose, and they have just restructured that scheme to make it possible to continue as a defined benefit final salary scheme, reducing the annual benefit accrual and introducing a parallel defined contribution component)

Questions to ask (read the paperwork)

Also, unless your take home pay is very low (i.e. only a few hours per week on average even at starting GA pay) or you are under a certain age, you will be auto-enrolled into the new pension pension unless you opt out.  That's the law, not a Tesco policy.

CAVEAT: I am not a financial advisor.  If in any doubt then I would suggest getting in touch with CAB, Money Advice Service, maybe USDAW, or with an independent financial advisor not tied to any pension provider (expect to pay a consultation fee for advisor advice although the fee may not be charged if it is clear that it would not be to your advantage to buy any products through them).

Title: Re: Pension Changes
Post by: seenitall on 22-04-15, 12:02AM
Quote from: Ethelredtheunready on 21-04-15, 02:12AM
re pike stupidboy!'s  comment "do you think the majority of the workforce understand enough to question and give feedback on a pension system ? Enough to make a difference I think not !"

I for one do not and I would be VERY grateful if someone who understands pensions would or could take the time to write an article explaining them

Alas that would take a whole book, not just a few words here on VLH. 

Best place to start is the free government Money Advice Service (website & phone line), who can explain the jargon at least.  I expect that the Consumer's Association ("Which") also publish some guides, check your local library to see if they have anything or look at the Which website.

Title: Re: Pension Changes
Post by: seenitall on 22-04-15, 12:20AM
Quote from: Duracell on 21-04-15, 05:43PM
...
Proposed New scheme, no mention of spouse/dependants regular income.

It's not typical for a defined contribution pension scheme to pay spouse/dependants income on death in service, this is more of a feature of DB schemes. 

But there is nothing to stop the spouse/dependants taking the death payment and pension refund to buy an annuity to get an income..however the annual income is likely to be very low.  The money received on death could also be invested in an income-oriented investment (bond fund or similar, or rental property) and live off the earnings of that and/or draw down over time.

After retirement with a DC scheme, well, it depends what sort of annuity you buy with your pension pot.  I think you can buy annuity that offers an income to the spouse, there are other options, and a financial advisor could sort that out, but it is not likely to be cheap.

In this brave new world, if a income for your spouse/dependants is important to you, then consider taking out a life insurance policy separately. You can get non-endowment life policies which will pay a lump sum if you die (and nothing if you don't within a fixed period..no ongoing investment component), this is likely to be the cheapest approach per month.  You may find that a top-up private defined contribution pension (running alongside the Tesco one) may offer a life insurance benefit if that is a concern but these may not be as good in vestment as doing an tax free ISA every year with your spare savings.  Also worth checking out "Friendly Societies" as you can pay into these alongside an ISA tax free and you may be able to get a life insurance benefit, too.

CAVEAT: I am not a financial advisor.
Title: Re: Pension Changes
Post by: seenitall on 22-04-15, 12:27AM
Quote from: seenitall on 21-04-15, 11:37PM
The general rule is that a company (defined contribution) pension where the employer makes a contribution is almost always more competitive than any scheme elsewhere. There are very few situations where this is not true (e.g. close or past retirement age and below income tax threshold, or you have excessive short term/expensive debt in which case no pension payment at all may be better approach, or just need a few extra quid for a year or two to save for a house deposit)


Yes, I am quoting my own post, bad form i know, but just thought of an extra point...
[Admins..if you wish to delete this post and edit this extra point into a previous post, feel free]

If you decide to opt out of the Tesco DC pension, and you have no better use for that 5% extra in your salary, then the history of recent years seems to suggest that investing in an tax free ISA (ideally one with a low management fee--e.g. 1%) may be better than a non-Tesco pension for some people.  More flexible, certainly, draw out what you want, when you want it, and some flex on how to invest it. 

ISA money would be after tax (pension is effectively before tax--if non-Tesco pension then the payment will be increased by the provider who claims the tax back from HMRC at standard rate--Tesco pension contribution would come off your pay before tax on your payslip).

Title: Re: Pension Changes
Post by: troll-hunter on 22-04-15, 12:44AM
Seenitall, I am not up to date with any changes made in the last budget so if I am in error you have my apologies but what you describe, the 'ISA' provider claiming the relevant  tax relief for their customers, sounds, to me, more like an SIPP rather than an ISA.


That said, I would second Ethelredtheunready's post  "I would be VERY grateful if someone who understands pensions would or could take the tlime to write an article explaining them"
Title: Re: Pension Changes
Post by: StaveTSW on 22-04-15, 08:33AM
I am unclear about what is happening to the pension we have already built up.   I have 20 years of service (and pension) in the Final Salary scheme.    If I retired in 5yrs would I receive; a) the final salary scheme (frozen for 5yrs) plus this new scheme  b) all of my contributions for 25yrs lumped together and transferred into the new scheme c) something else?
Title: Re: Pension Changes
Post by: Duracell on 22-04-15, 09:01AM
No scheme a.would pay the projected income at the time of scheme freeze, scheme b would realease a pot to be invested for a regular income.

As I understand it ( feel free to correct any error).
Title: Re: Pension Changes
Post by: Loki on 22-04-15, 12:38PM
The following has already been touched upon by by AlexM of which I will post in its entirity:

What percentage do we pay currently? Does the company match this?

The amount you pay depends on which section of the scheme you're in. Most people are in the Pension Builder section where they pay 5% of pensionable salary. 

The amount Tesco pays does not depend on what you pay. As the current scheme is defined benefit, Tesco has to pay the balance of cost of providing your benefits and those of everyone else in the scheme (including people who have already left Tesco).

Does this mean Tesco would be paying lower contributions?

No. If the proposals go ahead, Tesco expects to pay more in total into the existing and proposed new schemes than before Dave Lewis announced the intention to consult on change earlier this year.

If my circumstances changed, could I reduce or increase the amount I pay?

Yes. You could change how much you pay into the DC scheme, subject to a minimum. We do not know yet how often you would be able to make this choice but we would be able to tell you if the proposals go ahead.

What's the highest contribution I will be able to make?

There would be no maximum limit. However you would only get tax relief on contributions up to 100% of your annual earnings.  Or if you were a non-tax payer, under relief at source you would only receive a tax credit on your own contributions up to £3,600 a year.

Also, if total pension contributions (i.e. what you and Tesco have paid) were greater than the Annual Allowance (currently £40,000) in any year, then you would have to pay a tax charge on the amount above £40,000. 

What would happen if I leave Tesco?

If you leave Tesco after the proposed changes went ahead, your defined benefit pension will remain in the defined benefit scheme, and will increase with inflation until you retire.

If you've built up retirement savings in the proposed defined contribution scheme, they will remain invested until you retire. You will no longer be able to contribute to this defined contribution scheme.

You can choose to transfer benefits from both schemes to another pension scheme.

What would happen with my Additional Voluntary Contributions (AVCs) I've paid into the current scheme?

AVCs you had already paid into the existing scheme wouldn't be affected, but you wouldn't be able to pay any new AVCs. You would, however, be able to pay additional contributions into the new scheme. 

Would I be able to opt out?

Yes. You could opt out of the new scheme at any time (just as you can with our current scheme). However if you did, you would miss out on valuable life assurance and Company contributions towards your retirement.

Would the new scheme apply to everyone in the business, from the top down?

Yes. The existing scheme would close for all colleagues and the proposed new defined contribution scheme would be available to everyone. 

Would we still have ill-health benefits?

Yes. If you were too ill to work, you would be able to apply to receive your retirement savings from the new scheme early and choose whether to take as cash, income for the rest of your life or a mixture.

If you were also in the existing defined benefit scheme you could be able to draw a benefit from that scheme too.

What's the main difference between defined benefit (DB) and defined contribution (DC)?

In a DB scheme, like Pension Builder, you build up a pension during your service with the Company and you are paid this pension from the date you retire for the rest of your life.  The pension is calculated by a set formula and the amount depends on the length of your service and your salary.

In a DC scheme the money you and the Company pay in (plus the money the Government pays on your behalf) goes into your retirement savings.  The savings increase with investment returns over your working life and when you retire you can choose whether to take it as cash, a regular income or by taking a bit at a time through draw down.  The size of your retirement savings will depend on how much you contribute and actual investment returns.

What would be the maximum I could draw out tax free at retirement?

At present you are able to take up to 25% of your total retirement savings tax-free.

When I retire, would I still receive a pension until I die?

This is one of the options open to you. You could choose to use your retirement savings to buy an 'annuity' that would give you a regular income for the rest of your life.

You would also have the option to include an income to your spouse/partner on your death.

What type of fund choice would we have and which companies would provide them?

We haven't yet decided what these funds will be or who will provide them. We will be able to share more details if the proposals go ahead.

What protection would my savings have?

We would want our new scheme to be looked after by a Board of Trustees, just like our current scheme.  They would make sure that it is being administered correctly, and that the funds offered to members are only from strong and reputable companies.

How would my ill health early retirement option be affected? 

If you weren't expected to be able to work again, the Trustee could decide to pay you a pension even if you're under age 55.  This would be based on the pension you'd built up, reduced for early payment in line with the scheme rules. If you're a member of the proposed new scheme, you may be able to apply to take your retirement savings early.

Is that the Retail Price Index (RPI) or Consumer Price Index (CPI)?

Before you retire, most of your pension would increase each year in line with the Consumer Price Index (CPI) up to 5%.

After you retire, most of your pension built up before June 2012 increases with the Retail Price Index (RPI) up to 5% each year, and pension built up after June 2012 increases with CPI up to 5% each year.

Will I receive life cover in the proposed defined contribution scheme?

Yes. If you die while you're still employed by Tesco and paying into the new scheme, your dependants will receive a lump sum payment, plus a refund of everything that you've saved - including Tesco's contributions.

In addition, if you've paid into the current scheme, your family will receive the death benefits from the defined benefit scheme too.

If the current scheme closes, will I still get life cover from the defined benefit scheme if I die before I start receiving my pension from it?

Yes.  If you have been a member of the current pension scheme and die after the proposed closure of the scheme and before you receive any pension from it, your family will get:

*A lump sum equal to five times the pension you've built up (including any increases between the proposed scheme closure and your date of death)

*A pension for your spouse or civil partner, worth 60% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).

*A pension for your children, equal to 25% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).for one child, or 40% to be split between your children if you have more than one child.  The pension is payable until age 16 or age 23 if the recipient is in education or Trustee-approved training.

This is in addition to any life cover that you'd get from the proposed defined contribution scheme.
Title: Re: Pension Changes
Post by: Egg Head on 22-04-15, 01:25PM
Tesco also said its net debt had risen from £6.6 billion to £8.5 billion, while its net pension deficit had ballooned to £3.9 billion from £2.6 billion. The company today agreed to pay £270 million per year into the pension fund to help address the shortfall.
Title: Re: Pension Changes
Post by: blutopia on 22-04-15, 02:03PM
It has become impossible to plan for retirement, the rules change so often - the retirement age, interest rates, the rules governing the company pension scheme, how permanently Tesco will match colleague contributions, rules on government top-up benefits, pension 'freedom' (whatever that will turn out to be in reality).

The Tesco proposals actually change little for me except shift the balance to some projected dependency on housing and council tax benefits, but if the rules change again before I retire....?  Consequently my only argument in the consultation is that I preferred what appeared to be the greater certainty from the defined benefit scheme.
Title: Re: Pension Changes
Post by: seenitall on 22-04-15, 11:50PM
Quote from: troll-hunter on 22-04-15, 12:44AM
Seenitall, I am not up to date with any changes made in the last budget so if I am in error you have my apologies but what you describe, the 'ISA' provider claiming the relevant  tax relief for their customers, sounds, to me, more like an SIPP rather than an ISA.

Sorry if I was a bit unclear.  ISA rules have not changed much in recent years..you get a tax relief on any gains in the money invested, but you have to pay in using after tax money from your wages (so no income tax relief), but ISA is more flexible than a pension but lower long term returns. 

I was avoiding mentioning SIPPs since these are more complex to set up and run and tend to cost more in management fees and hence less likely to be relevant to most Tesco employees. Main benefit of SIPP is greater freedom of investment choice including property (but not your own home usually).  Property in a SIPP is also a bit tricky since you need lots of money in the SIPP in the first place to be able to buy the property outright using only SIPP money, but then the SIPP gets the rental income or capital gains.
Title: Re: Pension Changes
Post by: silver surfer on 23-04-15, 12:21AM
Not seen anything on here about the proposed pension arrangements for those who are Senior staff - Work Level 3 and above  but this is what they are getting.

"You choose what to pay in- You can save between 6% and10% of your salary every 4 weeks.If you change your mind you can change how much you pay".

"Tesco will pay in one and a half times more - For any contribution you make between 6% and 10% of your salary, Tesco will pay in one and a half times the amount you pay. So if you pay in 10%, Tesco will pay in 15%"

"If you die while you're still employed by Tesco and paying into the scheme, your dependants will receive a lump sum payment worth five times your salary. Plus a refund of everything that you've saved - including Tesco's
contributions."

So are we all in this together? Those on the big money seem to have looked after themselves so they get even more. So there we we have it, those chiefly responsible for the dire condition the company is in trouser far more than us drones on the front line. I think the changes are a done deal and the consulation is a sham and is merely going through the legal motions required however hope I am proved wrong.  Therefore I beg you  all to call or email the consultation helpline to express your disgust about the unfairness of the proposed changes. MAKE OUR VIEWS KNOWN.
Title: Re: Pension Changes
Post by: Duracell on 23-04-15, 09:22AM
Quote from: Loki on 22-04-15, 12:38PM


Will I receive life cover in the proposed defined contribution scheme?

Yes. If you die while you're still employed by Tesco and paying into the new scheme, your dependants will receive a lump sum payment, plus a refund of everything that you've saved - including Tesco's contributions.

In addition, if you've paid into the current scheme, your family will receive the death benefits from the defined benefit scheme too.

If the current scheme closes, will I still get life cover from the defined benefit scheme if I die before I start receiving my pension from it?

Yes.  If you have been a member of the current pension scheme and die after the proposed closure of the scheme and before you receive any pension from it, your family will get:

*A lump sum equal to five times the pension you've built up (including any increases between the proposed scheme closure and your date of death)

*A pension for your spouse or civil partner, worth 60% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).

*A pension for your children, equal to 25% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).for one child, or 40% to be split between your children if you have more than one child.  The pension is payable until age 16 or age 23 if the recipient is in education or Trustee-approved training.

This is in addition to any life cover that you'd get from the proposed defined contribution scheme.


Where has this information come from?
As the the scheme rules quite clearly state that the "Death in Service life cover" is on condition that you are contributing to the scheme at the time of death, with the start of the DC scheme you will not be paying in to the DB schemes so I can't see this as being correct unless they are changing the scheme rules for the transition.

So this info is saying that if you die in service then, you will recieve

9 x's your Salary 5x's old scheme + 4x's new scheme

+ Contributions paid into New Scheme

+ A pension for your spouse or civil partner, worth 60% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).

+ A pension for your children, equal to 25% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).for one child, or 40% to be split between your children if you have more than one child.  The pension is payable until age 16 or age 23 if the recipient is in education or Trustee-approved training.

Really ????? WOW

Lump sums possibly being as much in some cases as = £0.25m for death in service

Not sure how much I trust the wife now.

REALLY ??
Title: Re: Pension Changes
Post by: troll-hunter on 23-04-15, 09:27AM
Seeitall ahhhhh, my mistake, I was misinterpreting what you meant by "relevant tax relief" as I have not seen that phrase used in connection with ISA's.

Title: Re: Pension Changes
Post by: Loki on 23-04-15, 10:17AM
Quote from: Duracell on 23-04-15, 09:22AM
Where has this information come from?

Don't shoot the messenger. Tesco's own Q&A's.
Title: Re: Pension Changes
Post by: gytha_ogg on 23-04-15, 10:30AM
Quote from: seenitall on 22-04-15, 12:02AM
Quote from: Ethelredtheunready on 21-04-15, 02:12AM
re pike stupidboy!'s  comment "do you think the majority of the workforce understand enough to question and give feedback on a pension system ? Enough to make a difference I think not !"

I for one do not and I would be VERY grateful if someone who understands pensions would or could take the time to write an article explaining them

Alas that would take a whole book, not just a few words here on VLH. 

Best place to start is the free government Money Advice Service (website & phone line), who can explain the jargon at least.  I expect that the Consumer's Association ("Which") also publish some guides, check your local library to see if they have anything or look at the Which website.



Maybe it would help if someone with an understanding of the changes could highlight the downsides of them, so that people would have something to question or complain about?
Title: Re: Pension Changes
Post by: Duracell on 23-04-15, 10:41AM
Quote from: Loki on 23-04-15, 10:17AM
Quote from: Duracell on 23-04-15, 09:22AM
Where has this information come from?

Don't shoot the messenger. Tesco's own Q&A's.

I'm not shooting anyone, i'm worried about someone shooting me  :D
Title: Re: Pension Changes
Post by: Nomad on 23-04-15, 10:54AM
http://www.which.co.uk/money/retirement/guides/company-pensions-explained/ (http://www.which.co.uk/money/retirement/guides/company-pensions-explained/)
Title: Re: Pension Changes
Post by: Duracell on 23-04-15, 11:09AM
Quote from: Duracell on 23-04-15, 09:22AM
Quote from: Loki on 22-04-15, 12:38PM


Will I receive life cover in the proposed defined contribution scheme?

Yes. If you die while you're still employed by Tesco and paying into the new scheme, your dependants will receive a lump sum payment, plus a refund of everything that you've saved - including Tesco's contributions.

In addition, if you've paid into the current scheme, your family will receive the death benefits from the defined benefit scheme too.

If the current scheme closes, will I still get life cover from the defined benefit scheme if I die before I start receiving my pension from it?

Yes.  If you have been a member of the current pension scheme and die after the proposed closure of the scheme and before you receive any pension from it, your family will get:

*A lump sum equal to five times the pension you've built up (including any increases between the proposed scheme closure and your date of death)

*A pension for your spouse or civil partner, worth 60% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).

*A pension for your children, equal to 25% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).for one child, or 40% to be split between your children if you have more than one child.  The pension is payable until age 16 or age 23 if the recipient is in education or Trustee-approved training.

This is in addition to any life cover that you'd get from the proposed defined contribution scheme.


Where has this information come from?
As the the scheme rules quite clearly state that the "Death in Service life cover" is on condition that you are contributing to the scheme at the time of death, with the start of the DC scheme you will not be paying in to the DB schemes so I can't see this as being correct unless they are changing the scheme rules for the transition.

So this info is saying that if you die in service then, you will recieve

9 x's your Salary 5x's old scheme + 4x's new scheme

+ Contributions paid into New Scheme

+ A pension for your spouse or civil partner, worth 60% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).

+ A pension for your children, equal to 25% of the pension you've built up (including any increases between the proposed scheme closure and your date of death).for one child, or 40% to be split between your children if you have more than one child.  The pension is payable until age 16 or age 23 if the recipient is in education or Trustee-approved training.

Really ????? WOW

Lump sums possibly being as much in some cases as = £0.25m for death in service

Not sure how much I trust the wife now.

REALLY ??

I stand corrected by myself, its not 9x's salary, its 5x's pension amount from old scheme and 4x's salary from new scheme.

I still have my doubts.
Title: Re: Pension Changes
Post by: burns2015 on 23-04-15, 11:29AM
Duracell  still don't let the missus know though  I think she would still be tempted to lace your dinner with arsenic. :D
Title: Re: Pension Changes
Post by: Duracell on 23-04-15, 11:45AM
 :-X

Its seems thus far that although the death benefit in the proposed old scheme is reduced form 3 times your salary to 5 times your pension amount, as a result of them both paying out upon death before retirement as implied thus far,  total lump sums upon death from the two pots would be greater than if you were to remain in one.

If anyone is looking for a plus side to all this.
Still have my doubts though as www.pensionwebsite.co.uk (http://www.pensionwebsite.co.uk) clearly states "whilst a paying member".
Title: Re: Pension Changes
Post by: fargone on 24-04-15, 06:02PM
Done and Dusted Deal.
Title: Re: Pension Changes
Post by: Ethelredtheunready on 28-04-15, 07:29AM
I have started to read that "Which" article and it seems good. There are however many linked to pages and that has brought something to mind.
I remember once or twice, years ago, being able to download the web-page I was reading and all the "linked to" web-pages. I don't remember the browser but it was most likely either IE, Netscape or Firefox. I haven't seen Netscape in years, only occasionally use IE and now primarily use Firefox but I haven't noticed the facility to download the web-page I am reading AND all the "linked to" web-pages.
Question..... has that facility been discarded? If not does anyone know how to trigger it in Firefox?
Title: Re: Pension Changes
Post by: Loki on 28-04-15, 07:39AM
Quote from: fargone on 24-04-15, 06:02PM
Done and Dusted Deal.

Realistic and straight to the point as usual fargone.

Title: Re: Pension Changes
Post by: waldothebeagle on 28-04-15, 08:33AM
@Ethelredtheunready,  there is  a firefox extention that will do that for you.  It is called 'scrapbook'.

Title: Re: Pension Changes
Post by: troll-hunter on 28-04-15, 12:53PM
Thanks Waldo.

I too have been wishing for something like that for a while.
Title: Re: Pension Changes
Post by: Interstellar on 30-04-15, 04:52PM
I am 18 months from being 65 years of age. I fully understand if I take my pension now it will be at a reduced sum, but I have also been told today that if I carry on working for Tesco it is reduced further. My pension built up so far is £2500 per year. At 65 £2700. Any one can come up with some figures. It is taking so long to get a reply from Tesco Pensions.
Title: Re: Pension Changes
Post by: Ethelredtheunready on 01-05-15, 09:08AM
Waldo, many thanks!
Title: Re: Pension Changes
Post by: valleyboy on 05-05-15, 07:59PM
Astonishing not one branch meeting!!!!!!

Title: Re: Pension Changes
Post by: Noyouwont on 06-05-15, 02:40PM
Hello,
I am a little confused, so forgive me if this is a silly question.

The old pension is better then the new one, so can we make voluntary over payments into the old pension, to get the most out of the old pension while we still can.

So, is that a good idea??
How much can we over pay??
How long till the pension changes to the new scheme??
Title: Re: Pension Changes
Post by: troll-hunter on 07-05-15, 11:44AM
I don't think you can make over payments into the old scheme, I don't think you ever could. I think any over payments (AVC's?) went/go into an additional scheme, not the Tesco one. I would gladly be corrected in this as I would love to be wrong and thus given the opportunity to up my contirbutions but........
Title: Re: Pension Changes
Post by: valleyboy on 07-05-15, 07:43PM
Question.... why are people not saying no to the proposed changes and just accepting the change and inferior scheme?

How about you all give me ££££ and I'll  promise to pay you ££££ then I change my mind and give you less!!!!! What would you do?
Title: Re: Pension Changes
Post by: Loki on 07-05-15, 08:17PM
As far as I'm aware, the majority on here do not agree with the changes, so what "people" are you referring to?
Title: Re: Pension Changes
Post by: valleyboy on 07-05-15, 08:53PM
Loki have you called or pushed for your branch chairman to hold a branch meeting?

Our company in consultation have asked for the paying members views, to date it's minimal!!!. If 50% don't complain either to our company or the union then guess what!!

I used the word people should have rephrased and said paying members
Title: Re: Pension Changes
Post by: Loki on 07-05-15, 09:13PM
And where, pray tell, have you obtained the exact figure of participation?

Once the consultation has ended, then there is a provision within legislation for members to be balloted.
Title: Re: Pension Changes
Post by: optout on 07-05-15, 09:17PM
Valleyboy

i agree totally,

i have lobbied my union reps, voiced my disdain on the recent tesco what matters c**p and given my name so they can get back to me if they wish, have had the issue raised on my behalf (with my name attached to it) in store forums, and encouraged others in the store to do the same, emailed usdaw numerous times (no reply, not surprised), cannot talk to my AO (not worth a carrot, long story but voices where raised), am arranging another one as we speak, will be writing to Hannet, and Lewis shortly, have spoken to a national forum member.

did much of the same (except the Lewis/hannet bit, unless you count wrting a personal note to Lewis on my signed what matters toilet paper) about team leader/manager situation (although not one myself).

I must say that much of the ammunition i have used in my arguments has come from ideas and questions raised on this site. and you would think that a site such as this would be the ideal vehicle from which to launch a counter attack, unfortunately there is a lot of talk (in my view) and little else to back it up especially on the big issues.

typing a quick email and sending it to tesco takes the same time as it took you to reply to this post (but did you do it)??
and if you didn't do it, what do you think other peoples response is going to be when asked to do it.

if every member on this forum was coordinated to type and send an email to tesco or usdaw (or both) at a set specified time, now that might send a little message might it not.

unfortunately the main culprit (that i see on this site and on the shop floor) is Apathy.

we are constantly being divided and comprehensively conquered. (just my view).

Title: Re: Pension Changes
Post by: valleyboy on 13-05-15, 09:28PM
Nicely put optout you appear to be doing the job of a national officer.

@ loki to save me reading can you cite where in the current legislation members can vote if through consultation less than 50% have complained about any changes
Title: Re: Pension Changes
Post by: valleyboy on 13-05-15, 09:39PM
Apologies loki I didn't answer your question. If you ask Joanne or Pauline they would be able to give you, that's if they want a precise figure on complaints received
Title: Re: Pension Changes
Post by: tescobutcher on 15-05-15, 09:14PM
Does anyone know what happens to the pension I have built up if I opt out now? Someone in my store was talking about getting the money they put in back(taxed obviously)
Thanks
Title: Re: Pension Changes
Post by: Duracell on 20-05-15, 12:49PM
The Pension you have built up so far is protected, what your pension is worth when the scheme closes to contributions is what you will get from retirement age. (Not the projected pension amount as if you would still be contributing until 65).

As for the change in General. It is a fact that the pension is listed as a company benefit which isn't open to negotiation as part of pay negs etc.
So realistically what is it the union can do about the change, any kind of industrial action, would (in my honest opinion) invoke the legal minimum, the proposed changes are above that.
The Change is inevitable, I would expect the union I pay contributions to to grease the machine of change, not chuck a spanner in it.
The proposed changes are better than they legally have to be, I don't disagree that there is scope for improvement both in the proposals and communication, but thinking that the company will reverse their decision to stop individual contributions to defined benefit schemes is quite frankly naive to say the least.

Any kind rejection to change is futile and foolish.

Title: Re: Pension Changes
Post by: The Mrs on 18-06-15, 11:36PM
The next consultative meeting is next Tuesday/Wednesday.
Title: Re: Pension Changes
Post by: optout on 18-06-15, 11:52PM
duracell

where were you during vietnam, the American propaganda machine would have loved you. ;D ;D
Title: Re: Pension Changes
Post by: Duracell on 23-06-15, 05:28PM
Vietnam?? take a pill  ;D.

I have actually change my opinion after seeing some of the pension answers, but it all boils down to the membership having the right size testicles to make a difference.
Title: Re: Pension Changes
Post by: Twinkeltoes1 on 25-06-15, 03:52PM
Just had this from USDAW in reply to my unsavoury comments on twitter, hope you can see it ok

[attachment deleted by admin]
Title: Re: Pension Changes
Post by: eilidhsmum on 03-07-15, 10:59PM
Quote from: burns2015 on 20-04-15, 08:22AM
Today marks the start of the 90 day Consultation Period, Here is the Q&A from todays T5.

Q1. What changes are you proposing to make?

etc,etc...........
Title: Re: Pension Changes
Post by: Loki on 04-07-15, 08:23AM
Why have you quoted the OP with no reply?
Title: Re: Pension Changes
Post by: valleyboy on 04-07-15, 07:04PM
http://m.southwales-eveningpost.co.uk/Steelworkers-urged-accept-new-pensions-offer-Tata/story-26729893-detail/story.html (http://m.southwales-eveningpost.co.uk/Steelworkers-urged-accept-new-pensions-offer-Tata/story-26729893-detail/story.html)
Title: Re: Pension Changes
Post by: Loki on 04-08-15, 12:10PM
Pension consultation update

Tuesday 4th August, 2015


Dear colleagues,

Thank you to all of you who responded to our pension consultation.

We know how important pensions are to you and that's why we ran our consultation for 90 days, rather than the statutory period of 60 days, to allow you to have plenty of time to consider the changes and to let us have your views.

We are grateful to the large number of you who engaged in the consultation where we had over 60,000 visits to the website, 27,000 calls to the helpline and 2,900 comments from colleagues.  We also held many helpful and constructive meetings with your unions.

Throughout the whole of the consultation, we have been listening to and considering the feedback you've provided.

Your clear preference is to keep the existing defined benefit pension scheme – and not to close it.  However, if the defined benefit scheme were to close, there are a number of improvements to the proposals that you've asked for – those most asked for are shown in the table below:

1. Type of benefit   
Contributions payable by the company   

Suggested improvements to our proposals
Raise the maximum contribution above 5% a year

2. Type of benefit
Life cover payable on death   

Suggested improvements to our proposals
Increase life cover above four times your pay

3. Type of benefit
Benefit payable on ill health   

Suggested improvements to our proposals
Improve the pension on ill-health and offer permanent health insurance

4. Type of benefit
Early retirement defined benefit pension   

Suggested improvements to our proposals
Protect those close to retirement by not changing the current reduction on early retirement

5. Type of benefit
Extra contributions   

Suggested improvements to our proposals
Pay a one-off extra contribution to recognise the closure of the scheme

6. Type of benefit
Other suggested improvements
   
Suggested improvements to our proposals
Increase defined benefit pension to retirement by the Retail Price Index, not the Consumer Price Index. Don't increase the Full Pension Age for employed members, for pension built up after 1 June 2012 if life expectancy improves.

We are carefully looking at all the points that have been made and we will come back to you within the next six weeks.

We remain committed to doing the right thing by providing a pension scheme which is competitive, which rewards colleagues for the great job they do and helps everyone to save for their retirement.  At the same time we need to ensure that the scheme we offer is both affordable and sustainable for the business.

Thank you again for your contribution to our pension consultation.

Alison Horner
Chief People Officer
Title: Re: Pension Changes
Post by: David on 24-08-15, 11:35AM
Pension update will be sent to all colleagues via email at 1400 today.
Title: Re: Pension Changes
Post by: craftyarchie on 24-08-15, 04:46PM
Well I've got my email and to say I'm angry would be an understatement!
The gist of it is:
We said we were scrapping it in January, so we've put on a pretend consultation and guess what, we're scrapping it!
Here are some unfounded and unsubstantiated figures to scare you into believing our sham of a consultation.
By the way we're not mentioning the shortfall in the current pension, because that would by open and honest.
We'll let you increase the amount you can pay in,however we know that most staff will not be able to afford this due to our lack of pay rises and increased costs of living.
We'll bribe you with a one off payment to try and make you feel valued.
Here's how our competitors pensions compare although we've only included the information that makes us look better. ( Sainsbury's double their staffs contributions)
To conclude we'll hint at what you may get on retirement.  Bear in mind this figure assumes that you will work on sundays and bank holidays, that you will have a pay rise each year of 1.15% and that the scheme will return an annual profit of 4%, a target that no pension scheme has managed in the past few years.

I'll pause for a moment to allow USDAW to comment on todays announcement.  Of they would have to remove their mouths from Tescos arse in order to speak first though!
Title: Re: Pension Changes
Post by: Cabernetfranc on 24-08-15, 04:49PM
Lewis's pay deal at Tesco sees him earn a package worth up to £8.1million a year, comprising £1.25million in annual salary, plus a potential £3.13million bonus, possible £3.4million in long-term incentive shares and £313,000 in pension payments.

Read more: http://www.thisismoney.co.uk/money/news/article-3091174/Tesco-paid-new-boss-Dave-Lewis-4-1million-six-months.html#ixzz3jkRPsCLg (http://www.thisismoney.co.uk/money/news/article-3091174/Tesco-paid-new-boss-Dave-Lewis-4-1million-six-months.html#ixzz3jkRPsCLg)
Follow us: @MailOnline on Twitter | DailyMail on Facebook
Title: Re: Pension Changes
Post by: craftyarchie on 24-08-15, 04:51PM
Fat cats at a trough like pigs.  Any scraps left will be thrown us.
Title: Re: Pension Changes
Post by: AlexM on 24-08-15, 07:08PM
On the pension calculator it states that the Gov will be paying roughly 20% on top of what we pay & Tesco will match it. Ie I pay £80 a month, Gov pays £20 & Tesco pay £100.

Does the Government pay that for the current scheme? Just on my wife's last payslip it says £100CR next to Pension Builder in the first column & her 5% contribution is £100. The new pension calculator says wife pays £80 + Gov £20 and Tesco match it  to £100@ 5% contribution.

We're trying to figure out if she'll be saving £20 a month (or can increase her contribution to 6% and bleed more out of Tesco!).
Title: Re: Pension Changes
Post by: mexicopete on 24-08-15, 07:20PM
Quote from: craftyarchie on 24-08-15, 04:51PM
Fat cats at a trough like pigs.  Any sc**ps left will be thrown us.

Not wrong there mate. Lying, manipulative Tw*ts at the top. >:( >:( >:(
Title: Re: Pension Changes
Post by: Loki on 24-08-15, 08:17PM
So...

.... Usdaw ...?
Title: Re: Pension Changes
Post by: HalloweenJack on 24-08-15, 08:18PM
Quote from: craftyarchie on 24-08-15, 04:46PM
Well I've got my email and to say I'm angry would be an understatement!
The gist of it is:
We said we were sc**pping it in January, so we've put on a pretend consultation and guess what, we're sc**pping it!
Here are some unfounded and unsubstantiated figures to scare you into believing our sham of a consultation.
By the way we're not mentioning the shortfall in the current pension, because that would by open and honest.
We'll let you increase the amount you can pay in,however we know that most staff will not be able to afford this due to our lack of pay rises and increased costs of living.
We'll bribe you with a one off payment to try and make you feel valued.
Here's how our competitors pensions compare although we've only included the information that makes us look better. ( Sainsbury's double their staffs contributions)
To conclude we'll hint at what you may get on retirement.  Bear in mind this figure assumes that you will work on sundays and bank holidays, that you will have a pay rise each year of 1.15% and that the scheme will return an annual profit of 4%, a target that no pension scheme has managed in the past few years.

I'll pause for a moment to allow USDAW to comment on todays announcement.  Of they would have to remove their mouths from Tescos arse in order to speak first though!

reading:

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&sqi=2&ved=0CDYQFjAHahUKEwj8vvS3t8LHAhWJWNsKHWMOASw&url=https%3A%2F%2Fwww80.landg.com%2FDocumentLibraryWeb%2FDocument%3Freference%3DSainsburys_MasterTrust_Members_Booklet.pdf&ei=uW3bVbz-A4mx7QbjnITgAg&usg=AFQjCNHBTp5dhzwKxBZY3NNtge6O3tPJ8g&sig2=dIqyTLSMdyOF-D3qM6Rn2g (https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&sqi=2&ved=0CDYQFjAHahUKEwj8vvS3t8LHAhWJWNsKHWMOASw&url=https%3A%2F%2Fwww80.landg.com%2FDocumentLibraryWeb%2FDocument%3Freference%3DSainsburys_MasterTrust_Members_Booklet.pdf&ei=uW3bVbz-A4mx7QbjnITgAg&usg=AFQjCNHBTp5dhzwKxBZY3NNtge6O3tPJ8g&sig2=dIqyTLSMdyOF-D3qM6Rn2g)

Sainbury`s are very similar to the proposed for tesco except life cover is 6 times not the five for Tesco
Title: Re: Pension Changes
Post by: lucgeo on 24-08-15, 08:44PM
One hour after receiving the pension announcement e mail, USDAW send their e mail about recruitment week!! Yep, they know members will be up in arms and cancelling their memberships, so again they ask reps to go on a recruitment drive!! That's if they have any reps left?? Wonder how many reps will be stepping down and not seeking re election in the upcoming elections?? Hmmm!! Am in two minds me self??
Title: Re: Pension Changes
Post by: picktocube on 24-08-15, 09:00PM
Strange how you come to that conclusion,when the recruitment drive which is for all of the companies that they are involved in(not just Tesco )and  has been on their calendar all year.
Title: Re: Pension Changes
Post by: lucgeo on 24-08-15, 09:06PM
Indeed it has! I find strange the fact that they feel the need to e mail within an hour of the expected announcement!
Title: Re: Pension Changes
Post by: David on 24-08-15, 09:09PM
In the interest of transparency...
Work Level 3 and above will continue to earn 1.5x their contributions and will have a maximum employee contribution of 10% (rather than 7.5% for WL1 & WL2). As an example if you decided to contribute 10%, Tesco would contribute 15%.

Hardly fair nor reasonable.

If you want to read the full detail you can access the pensions website using the password seniorinfo2015 rather than info2015 and it will be there for everyone to see.
Title: Re: Pension Changes
Post by: craftyarchie on 24-08-15, 09:25PM
Haloween Jack,  our competitors.
Morrisons are currently under negotiation.
Asda is hard to find details of but they've closed their DB and offer 3% matching.
Sainsburys step up matches up to 7.5%
Waitrose 3% and match up to 4.5%
M&S double contributions for those under 2 years, you put in 3% they put 6%. For longer than 2 years you put in 6% they put in 12%

As others have said the contributions differ for higher levels up to the obscene amounts for the board.
Title: Re: Pension Changes
Post by: seenitall on 25-08-15, 12:11AM
Quote from: craftyarchie on 24-08-15, 09:25PM
Waitrose 3% and match up to 4.5%
Not the whole story on Waitrose.
First 5 years (was recently 3 years but returned back to 5 years): Waitrose 3% and match up to 4.5%.
After 5 (3) years: There is a DB scheme as well (accrual rate significantly reduced recently and benefits rebaselined--Life expectancy adjustment factor), Waitrose pays money into both schemes, but you don't get an accrual credit for the initial waiting years, just the DC part only.  No transfers in or out of DB scheme.

Title: Re: Pension Changes
Post by: Welsh-Hugh on 25-08-15, 01:53AM
We're all in it together Drastic Dave says . Well that's not quite right. Where's the open honest and transparent gone? Wait there it wasn't there in first place. No doubt managers in work will try and sell it to the lessor people below them ie the workers . But then again they would ,as all senior managers won't get up to 7.5% paid in they will get 15%. The hard workers have been sold down the river .
This is actual pension brief to Tesco senior managers


In the new scheme you'd be able to choose how much to pay in.

You could pay between 6% and 10% of your salary every 4 weeks. If you changed your mind you could change how much you pay.

Tesco would pay in one and a half times more. For any contribution you made between 6% and 10% of your salary, Tesco would pay in one and a half times the amount you paid.  So if you paid in 10%, Tesco would pay in 15%

The Government would also pay part of your contributions on your behalf  - even if you're not a taxpayer.  So the actual cost to you would be less.

If you wanted to pay additional contributions towards your retirement you could do so by increasing your 4-weekly contributions above 10%. You could save as much of your salary as you like, but Tesco would only pay in one and a half times more up to 10%.
Title: Re: Pension Changes
Post by: oliver on 25-08-15, 02:46PM
Where is everybody ? Does this mesn your all happy with the outcome of your new pension, its still a disgrace when higher up the scale and members if the board get the collosle amounts in their pensions.one of our managers said there is nothing to kerp him here now, just what tesco want i told him , cheaper managers will slot in his place .
Title: Re: Pension Changes
Post by: troll-hunter on 25-08-15, 03:00PM
I doubt anyone anyone who physically works for their living is happy but ....... did anyone really expect them to stop the closure because of a consultation?

The one thing I would question was if they made a physical loss in the later part of 2014, I thought it was a paper loss i.e. a reduction in the "on paper" value of assets, am I mistaken.
Title: Re: Pension Changes
Post by: oliver on 25-08-15, 03:05PM
No they knew all along what they were doing the vodio on our tesco is patronising and of course staged managed,
Title: Re: Pension Changes
Post by: gomezz on 25-08-15, 04:15PM
My current thoughts, given my own circumstances, is to opt out of the new pension completely (is that an option) and make the money work better for me elsewhere.
Title: Re: Pension Changes
Post by: oliver on 25-08-15, 04:47PM
One of my colleges said he would have to put 29% of his wage in to cover the short fall of course no way can he make that up,they have certainly left us high and dry.gomezz i stand corrected but dont we have to be in a pension by law now, they certainly have got us in a corner,or get out altogether.
Title: Re: Pension Changes
Post by: oliver on 25-08-15, 04:54PM
Sorry about the spelling just getting used to new  phone.
Title: Re: Pension Changes
Post by: picktocube on 25-08-15, 05:36PM
To get all your facts you also need to know how much your pension that is being frozen will also pay.

In regards to your question ,oliver,no,you don't have to be in a pension by law.But it is law that all employers have to offer a pension scheme to their employees.
Title: Re: Pension Changes
Post by: oliver on 25-08-15, 06:00PM
Picktocube- thanks for that info,
Title: Re: Pension Changes
Post by: craftyarchie on 25-08-15, 06:13PM
As Loki said, "Hello USDAW, your members need you!"
Title: Re: Pension Changes
Post by: mexicopete on 25-08-15, 07:04PM
Quote from: Cabernetfranc on 24-08-15, 04:49PM
Lewis's pay deal at Tesco sees him earn a package worth up to £8.1million a year, comprising £1.25million in annual salary, plus a potential £3.13million bonus, possible £3.4million in long-term incentive shares and £313,000 in pension payments.

Read more: http://www.thisismoney.co.uk/money/news/article-3091174/Tesco-paid-new-boss-Dave-Lewis-4-1million-six-months.html#ixzz3jkRPsCLg (http://www.thisismoney.co.uk/money/news/article-3091174/Tesco-paid-new-boss-Dave-Lewis-4-1million-six-months.html#ixzz3jkRPsCLg)
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Remind me what percentage wage rise we got last year? just above the F' all we are getting this year and now add to this the closing of D.B. pension scheme, then take a look at what the pretentious Pr*ck above is taking out of the business for just over a years work, He's like a vampire sucking the lifeblood out of Tesco and I am only one of many who do not believe he is the Wonderboy he is being painted to be. :'( :'( :'( :'(
Title: Re: Pension Changes
Post by: craftyarchie on 25-08-15, 07:09PM
No Pete you're not alone.
Title: Re: Pension Changes
Post by: Mickymouse1962 on 25-08-15, 11:21PM
I will be withdrawing my pension and putting it will standard life put an old one with them it's made  a lot of money £22,000 became £25,000 in 2 years
Title: Re: Pension Changes
Post by: AlexM on 05-09-15, 09:19AM
Quick question from my son. He has no children but has made his expression of wish out to benefit our grandchildren (his nieces).  As he's in the pension, if he were to die, would his 5x salary be paid out to his neices or would Tesco not pay out as he has no dependants - no wife or kids? He thinks there'll be a loophole in there somewhere so Tesco wouldn't have to pay out.
Title: Re: Pension Changes
Post by: burns2015 on 05-09-15, 09:44AM
Hi Alex No its paid out to whoever is named on EOW.
Title: Re: Pension Changes
Post by: AlexM on 05-09-15, 09:46AM
Thank you. He's deciding whether he's better off staying in the company pension or looking at alternatives.
Title: Re: Pension Changes
Post by: burns2015 on 05-09-15, 10:02AM
Well if it helps I was looking around and to be honest Tesco one is still looking the better option than going private.
Title: Re: Pension Changes
Post by: Mickymouse1962 on 05-09-15, 11:20AM
I have 20 years worth of pension and am getting it out before there is nothing left and am opting out of new pension it's not worth being in it for me will be better in my pocket.

Wonder what  would happen to the company if everybody  took out there pension.
Title: Re: Pension Changes
Post by: lordadmiral on 14-09-15, 05:16PM
Hmmm i must add few things to Tesco Pension. Its one of the worst schemes i seen on British market. It is offering quite small interest (35% last 5 years) and since last year scheme is loosing. The 15 yr interest look nice but its still fraction  compared to others.
It would be better for those who can to resign from Tesco Pension and look somewhere else.


Title: Re: Pension Changes
Post by: best on 14-09-15, 08:10PM
 Hi if your guy,s Before you go it alone with your pension, if you put in, Stresco put in, plus the Gov put into your pension pot.   
On your own its just you putting in..... Just saying
Title: Re: Pension Changes
Post by: mexicopete on 14-09-15, 08:51PM
@best this is very true, but unfortunately the new scheme benefits are complete guff when compared against the current defined benefit scheme.  :'( :'( :'( :'(
Title: Re: Pension Changes
Post by: lordadmiral on 15-09-15, 10:55AM
Quote from: best on 14-09-15, 08:10PM
Hi if your guy,s Before you go it alone with your pension, if you put in, Stresco put in, plus the Gov put into your pension pot.   
On your own its just you putting in..... Just saying

Yes that's right it sound good if company and government add little more to contributions people are making but it might not be enough if scheme is loosing the money.
I canceled my Tesco pension long long time ago and i do not regret that as my current Pension Scheme with live cover gained twice more than Tesco Scheme gained in the same time (15 yrs).
Title: Re: Pension Changes
Post by: silver surfer on 08-10-15, 06:19PM
Quote from: Mickymouse1962 on 25-08-15, 11:21PM
I will be withdrawing my pension and putting it will standard life put an old one with them it's made  a lot of money £22,000 became £25,000 in 2 years

You have it wrong. You just can't withdraw your pension in the DB scheme and invest elsewhere.
Title: Re: Pension Changes
Post by: silver surfer on 08-10-15, 06:29PM
Quote from: Mickymouse1962 on 05-09-15, 11:20AM
I have 20 years worth of pension and am getting it out before there is nothing left and am opting out of new pension it's not worth being in it for me will be better in my pocket.

Wonder what  would happen to the company if everybody  took out there pension.

As I have said elsewhere, it is a fallacy that you can take your 20 years worth of pension out of the DB scheme. If you are under 55 your only option is to transfer it to another scheme. If you have been in the pension for 20 years you will probably be in the final salary scheme and there is no way in hell the transfer value will be worth anywhere near value of your FS pension. If you are over 55 you could start taking your pension and have up to a max of 25% as a lump sum. Please take financial advice before quitting the pension. There are a lot of scammers out there trying to get their hands on the pensions of the ill informed of which you appear to be one. Sorry no offence but your advice is dangerous.
Title: Re: Pension Changes
Post by: notsofunny on 08-10-15, 07:22PM
Seems all in all lots of complaints about Tes..c stopping the pension and how we are getting riped off,,, ???
Then lots of complaints to say how bad the pension is 8-)

Some talk about taking the money out and so on,

Before anyone runs around and does any thing silly,, Please get some advice,, and from that I mean paid advice,
Last thing you want to do is make a mistake on moving it , only to find that the cost far outstrips the savings,,

Me i am keeping it as it is let the dust settle then see about what i want to do,,
Another thing was there not something about a top up on the pension some time next year?
Title: Re: Pension Changes
Post by: silver surfer on 08-10-15, 09:53PM
For those of you who are like me in their 60's and plan to stay in work for a bit here is a tip. Join the new pension scheme and if you can afford to put 7.5% into the new pension scheme rather than the next save as you earn share scheme which should be announced before too long. Why? To make a good profit you have to be in the scheme for a number of years and at the end the share price has to be higher than the offer price and there is certainly no guarantee of that. If share price remains the same or drops you will not lose the money you paid in but it will be little more than a poor savings scheme. However if you pay an extra percentage into the new pension Tesco will match your contributions up to 7.5%. If you put 7.5% of your salary in so do Tesco. So instead of paying in £100 in to a share scheme  by putting it in pension you will get £200 back. I am 65 next year and plan to work health permitting another 3 years. So I will be paying £3,600 but my pension pot at the end of three years will be £7,200 + the one weeks pay bonus they are putting in to start the new pension pot. That is guaranteed. Even though it will be taxable when I cash it in it really is a no brainer. Sure a shares could soar but for employees my age you cant get a better savings scheme. I have heard a lot of colleagues in my age group say its not worth joining the pension - I hope you can see that it is. If you can spare the money its the next best thing to printing money.
Title: Re: Pension Changes
Post by: Digimon on 08-10-15, 10:02PM
For those of you in the 'old' Defined benefit pension scheme', did you notice that once again the pension deficit has increased by a further £300+ million in the last 6 months. Perversely, this increase almost mirrors Dave's 300 million deliverance of profit (one of his key measures enabling the Tesco flag waving PR exercise).

If you're over 55 and in a position to downdraw some of that pot, I would recommend doing it while there is something left to make use of, otherwise keep a close eye on the deficit in the next couple of years or so. In twenty years time, or less, there could be bugger all left.
Title: Re: Pension Changes
Post by: burns2015 on 08-10-15, 10:03PM
Is the 1 wks pay not to the old pension pot.
Title: Re: Pension Changes
Post by: silver surfer on 08-10-15, 11:08PM
Quote from: Digimon on 08-10-15, 10:02PM
For those of you in the 'old' Defined benefit pension scheme', did you notice that once again the pension deficit has increased by a further £300+ million in the last 6 months. Perversely, this increase almost mirrors Dave's 300 million deliverance of profit (one of his key measures enabling the Tesco flag waving PR exercise).

If you're over 55 and in a position to downdraw some of that pot, I would recommend doing it while there is something left to make use of, otherwise keep a close eye on the deficit in the next couple of years or so. In twenty years time, or less, there could be bugger all left.

Once again let me state in the Defined Benefit scheme there is not such a thing as a "pot" and it is not possible to draw down something that does not exist. If you are over 55 you can take the full pension monthly pension for the rest of your life or you can take a reduced monthly lifetime pension and tax free lump sum up to 25% of the value of your pension. If you choose the latter they will be set up at the same time. If you take the 25% tax free you have to take the rest as a monthly pension at the same time - you cannot leave the balance to draw down later.
Title: Re: Pension Changes
Post by: silver surfer on 08-10-15, 11:10PM
Quote from: burns2015 on 08-10-15, 10:03PM
Is the 1 wks pay not to the old pension pot.

No - it is an inducement to join the new scheme and can be seen as a kick start to your pension pot.
Title: Re: Pension Changes
Post by: Loki on 26-10-15, 12:14PM
Introduction to Tesco's New Retirement Scheme

Further to Tesco's recent decision to introduce a new Retirement Scheme, the Tesco Retirement Savings Plan ("the Plan"), outlined below is a brief introduction to Tesco's Pension Scheme:

What is the Tesco Retirement Savings Plan?

This is the new retirement savings plan available to employees of Tesco, which is being provided by Legal & General. If you are currently participating in the Tesco Defined Benefit scheme you will shortly receive a letter confirming the details of the new plan.

Information about the new plan can also be accessed on Tesco's new website at:
https://www.thecolleagueroom.com/login (https://www.thecolleagueroom.com/login)

Posters will be put up in stores and workplaces, a dedicated pension helpline number is available on 0345 070 1113 and People Managers will be provided with copies of the forms.

Usdaw's Pension Team will also be on hand to take any of your queries.

When will the Tesco Retirement Savings Plan be available?

The new Plan will commence with effect from 22 November 2015.

How do I join?

Individuals will automatically be put into the new scheme including:

* current members of the Defined Benefit scheme;

* anyone who has opted out of the Defined Benefit scheme in the past;

* new employees between the ages of 22 and 75 who have completed 3 months' service.

If you do not fall into one of these categories you can apply to join the Plan at any time, by using the new Tesco website, by phoning the Pensions Helpline number or by talking to your personnel Manager.

Once you have joined the Plan you will receive a confirmation letter from Legal & General.

A workplace savings scheme is still the best way to save for your retirement and Usdaw would encourage all of our members to join the new scheme. However, if you do wish to opt out and receive a refund of your contributions, you must do this ONLINE within 30 days by using the code provided in the joining letter from Legal & General.

Contact Usdaw for more information

Usdaw members can contact the Union's Pensions Section on 0161 224 2804 or email pensions@usdaw.org.uk.

Usdaw Factsheet:

http://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=a846b3eb-6a1a-4d0a-a6a4-56c17c40befe (http://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=a846b3eb-6a1a-4d0a-a6a4-56c17c40befe)
Title: Re: Pension Changes
Post by: bobbywm on 26-10-15, 01:54PM
so basically.  if i'm in the current pension scheme,  i need do nothing. ?
Title: Re: Pension Changes
Post by: Hammer10 on 26-10-15, 02:31PM
Tried to register it don't work rang them up as usual next to bloody useless .
Title: Re: Pension Changes
Post by: burns2015 on 26-10-15, 04:48PM
Quote from: bobbywm on 26-10-15, 01:54PM
so basically.  if i'm in the current pension scheme,  i need do nothing. ?

if you want to pay in more than the 4% you will need to change it.
Title: Re: Pension Changes
Post by: Mickymouse1962 on 26-10-15, 05:23PM
as the old pension would be frozen I am going to transfer it to my standard  life pension
Title: Re: Pension Changes
Post by: Mickymouse1962 on 26-10-15, 05:24PM
as for the new one no thanks company won't be around for me to get it I hope
Title: Re: Pension Changes
Post by: picktocube on 26-10-15, 05:43PM
Quote from: Mickymouse1962 on 26-10-15, 05:23PM
as the old pension would be frozen I am going to transfer it to my standard  life pension

Hope you get full advice ,before doing that ,because I believe the transfer value will be substantially less than if you leave it where it is. In most cases you would be worse off.
Title: Re: Pension Changes
Post by: mexicopete on 26-10-15, 05:54PM
Quote from: Mickymouse1962 on 26-10-15, 05:23PM
as the old pension would be frozen I am going to transfer it to my standard  life pension

Any Financial Adviser who advises you to transfer your Tesco pension into the Standard Life policy is only doing it for his own financial gain as it most certainly bad advice. There are all sorts of guarantees built into the Tesco Defined Benefit scheme that you will lose by transferring it. You will most definitely be worse off by doing so. :thumbdown: :thumbdown:
Title: Re: Pension Changes
Post by: usualsuspect on 26-10-15, 07:45PM
I was advised by a personal friend , who is an established IFA that it would be a definite no no to even consider moving out of the scheme. He stated it's a no brainer no private scheme can get anywhere that which you have... lucky lad he said.

US
Title: Re: Pension Changes
Post by: oliver on 27-10-15, 05:29AM
Usualsuspect. The pension is not as good as it was but better than a private one with all the extras that you wouldn't get with a private one.read the pension fact sheet.
Title: Re: Pension Changes
Post by: lackofinterest on 27-10-15, 10:44AM
Quote from: Loki on 26-10-15, 12:14PM
Introduction to Tesco's New Retirement Scheme

...............

A workplace savings scheme is still the best way to save for your retirement and Usdaw would encourage all of our members to join the new scheme. However, if you do wish to opt out and receive a refund of your contributions, you must do this ONLINE within 30 days by using the code provided in the joining letter from Legal & General.

Contact Usdaw for more information

Usdaw members can contact the Union's Pensions Section on 0161 224 2804 or email pensions@usdaw.org.uk.

Usdaw Factsheet:

http://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=a846b3eb-6a1a-4d0a-a6a4-56c17c40befe (http://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=a846b3eb-6a1a-4d0a-a6a4-56c17c40befe)
how do i optout BEFORE i'm automatically put in?
Title: Re: Pension Changes
Post by: Nomad on 27-10-15, 12:10PM
https://www.gov.uk/workplace-pensions (https://www.gov.uk/workplace-pensions)

Quote'Automatic enrolment'

A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:

   

  • are aged between 22 and State Pension age
  • earn more than £10,000 a year
  • work in the UK

I can find no mention of a prior opt out being possible, except if you already have a pension pot of £1.25m
Title: Re: Pension Changes
Post by: lackofinterest on 27-10-15, 12:56PM
therefore it looks like i have to opt out AFTER  being forced to join? what happened to freedom of choice???????? >:(
Title: Re: Pension Changes
Post by: oliver on 27-10-15, 01:39PM
The government took that away where have you been ?
Title: Re: Pension Changes
Post by: GAIL75 on 27-10-15, 03:39PM
I had heard a rumour we were going  to be offered a buy out of old pension? Any one heard anything?
Title: Re: Pension Changes
Post by: Loki on 27-10-15, 08:12PM
Absolute bovine
Title: Re: Pension Changes
Post by: silver surfer on 27-10-15, 10:33PM
Quote from: usualsuspect on 26-10-15, 07:45PM
I was advised by a personal friend , who is an established IFA that it would be a definite no no to even consider moving out of the scheme. He stated it's a no brainer no private scheme can get anywhere that which you have... lucky lad he said.


Well get a second opinion. Your transfer value will almost certainly be less than leaving it where it is. If you are married and have young children you need to factor in the potential value of a spouse or dependents pension if you snuff it. You would have accrued those  in the DB scheme. You are unlikely to get those benefits in any standard private scheme.
Title: Re: Pension Changes
Post by: AlexM on 28-10-15, 07:32AM
Got my letter yesterday telling me how to register for the colleague room website. I noticed, tucked away in the small print at the back, that I'll now be paying more national insurance. They never told us about that bit when they were talking about tax relief on our pension payments, did they?
Title: Re: Pension Changes
Post by: Denzil on 28-10-15, 02:40PM
I thought once registered I would be able to access my own personal plan stating how much would be transferred across.
I can't find this information anywhere, is it available does anyone know?
Title: Re: Pension Changes
Post by: Hammer10 on 28-10-15, 02:43PM
Statements are coming out in January to let you know what you currently have in old plan.
Title: Re: Pension Changes
Post by: Denzil on 28-10-15, 02:53PM
Thanks Hammer :thumbup:
Title: Re: Pension Changes
Post by: Hammer10 on 28-10-15, 05:14PM
No problem
Title: Re: Pension Changes
Post by: oliver on 29-10-15, 10:10AM
Does anyone know what the national ins percentage is going up to on the new tesco pension format,i haven't gone on the pension website yet.? Thankyou
Title: Re: Pension Changes
Post by: oliver on 30-10-15, 07:32AM
I've been told we have to pay more nat ins under the new format.
Title: Re: Pension Changes
Post by: antico on 30-10-15, 03:34PM
Oliver you will pay 12% and that's because you can no longer opt out due to changes put in place by government to achieve the new state pension.
Title: Re: Pension Changes
Post by: oliver on 30-10-15, 07:16PM
Antico thank you I appreciated your reply, so were we saving on tax and NI before?  I'll let colleges know. 
Title: Re: Pension Changes
Post by: antico on 30-10-15, 08:24PM
Correct ; old scheme opt out we paid less N I .  new scheme no opt out allowed therefore we revert to 12%.
Title: Re: Pension Changes
Post by: oliver on 30-10-15, 09:18PM
Thankyou for that,getting up to 7.5 off tesco but now we have to pay 12% more than b4 that doesnt seem worth doing ,but i havent dared do the pension calulator yet to br honest,
Title: Re: Pension Changes
Post by: antico on 30-10-15, 11:02PM
Oliver  you will not be paying an extra 12% just the difference between the old payment and the 12% .



Title: Re: Pension Changes
Post by: oliver on 31-10-15, 07:49AM
Thank you Antico.
Title: Re: Pension Changes
Post by: Hoo-rah! on 05-11-15, 05:00PM
Does anyone know if our pension contributions will be deducted before or after our tax/national insurance deductions? With the current pension, a percentage of our wages is put into our pension and then the tax/national insurance is calculated. I just wondered if with the new pension, they'll deduct tax/national insurance first and then take the pension percentage from our wages.
Title: Re: Pension Changes
Post by: lackofinterest on 05-11-15, 07:17PM
Quote from: antico on 30-10-15, 03:34PM
Oliver you will pay 12% and that's because you can no longer opt out due to changes put in place by government to achieve the new state pension.
you can opt out but only AFTER you've been automatically opted in >:(
Title: Re: Pension Changes
Post by: Digimon on 05-11-15, 09:47PM
If you don't want the new pension, and intend opting out after being automatically opted in, you need to get your skates on.

In the past you could opt out anytime within a two year threshold and get your contributions back. You now have just one month to do so before all contributions are locked in until your retirement.  8-)
Title: Re: Pension Changes
Post by: redcar renegade on 05-11-15, 11:00PM
The new pension you have 30 days to opt out or you don't get anything back believe you can get form from personnel department of the colleague room website
Title: Re: Pension Changes
Post by: viperex on 21-11-15, 01:30PM
Hi new member been at working nights for 4 months and in this months wage slip was charged £40  smart pension builder how do i opt out as i never opted in ? registered on the colleague forum but it says need a enrollment number which i dont have
Title: Re: Pension Changes
Post by: Duracell on 21-11-15, 01:47PM
As I understand it, you don't opt in you have to opt out, so they haven't done anything wrong as you didn't opt out and as such automatically started the scheme.

However that would be in normal circumstance, the scheme you have paid 1 months contribution to is now closed to contributions after this months pay.

It would be reasonable to agrue what is the point of enrolling you in a scheme that is pretty much a waste of your time and money, I can't see what sort of benefit you would gain from a pension that is frozen with a £40 contribution.

I would think it reasonable for anyone to expect not to be enrolled in a scheme that only has 1 month before its closure and to direct the focus to the new scheme.

I can't believe they enrolled you in the old scheme.
Title: Re: Pension Changes
Post by: lucgeo on 21-11-15, 01:48PM
Forgive me if this has already been covered. I was looking at the pension booklet and noticed that if I increased my contribution then my beneficeries would receive 5x my pay but if I stayed at the basic contributed by Tesco then it would only be 1x my pay  :question:
Title: Re: Pension Changes
Post by: viperex on 21-11-15, 01:53PM
Quote from: Duracell on 21-11-15, 01:47PM
As I understand it, you don't opt in you have to opt out, so they haven't done anything wrong as you didn't opt out and as such automatically started the scheme.

However that would be in normal circumstance, the scheme you have paid 1 months contribution to is now closed to contributions after this months pay.

It would be reasonable to agrue what is the point of enrolling you in a scheme that is pretty much a waste of your time and money, I can't see what sort of benefit you would gain from a pension that is frozen with a £40 contribution.

I would think it reasonable for anyone to expect not to be enrolled in a scheme that only has 1 month before its closure and to direct the focus to the new scheme.

I can't believe they enrolled you in the old scheme.

so what can i do now as i dont want them to take money out and the collegueroom seems some pages are under construction and i dont have a enrollment number
Title: Re: Pension Changes
Post by: mexicopete on 21-11-15, 05:01PM
Quote from: Duracell on 21-11-15, 01:47PM
As I understand it, you don't opt in you have to opt out, so they haven't done anything wrong as you didn't opt out and as such automatically started the scheme.

However that would be in normal circumstance, the scheme you have paid 1 months contribution to is now closed to contributions after this months pay.

It would be reasonable to agrue what is the point of enrolling you in a scheme that is pretty much a waste of your time and money, I can't see what sort of benefit you would gain from a pension that is frozen with a £40 contribution.

I would think it reasonable for anyone to expect not to be enrolled in a scheme that only has 1 month before its closure and to direct the focus to the new scheme.

I can't believe they enrolled you in the old scheme.

They have done this with quite a few new starters in our store, some of them are just eighteen years of age, you can ring the pension dept. and they will cancel the pension and refund the pension payments on the next available pay date. Just another case of Tesco and common sense being at odds as per usual.

Title: Re: Pension Changes
Post by: viperex on 21-11-15, 07:57PM
Quote from: mexicopete on 21-11-15, 05:01PM
Quote from: Duracell on 21-11-15, 01:47PM
As I understand it, you don't opt in you have to opt out, so they haven't done anything wrong as you didn't opt out and as such automatically started the scheme.

However that would be in normal circumstance, the scheme you have paid 1 months contribution to is now closed to contributions after this months pay.

It would be reasonable to agrue what is the point of enrolling you in a scheme that is pretty much a waste of your time and money, I can't see what sort of benefit you would gain from a pension that is frozen with a £40 contribution.

I would think it reasonable for anyone to expect not to be enrolled in a scheme that only has 1 month before its closure and to direct the focus to the new scheme.

I can't believe they enrolled you in the old scheme.

They have done this with quite a few new starters in our store, some of them are just eighteen years of age, you can ring the pension dept. and they will cancel the pension and refund the pension payments on the next available pay date. Just another case of Tesco and common sense being at odds as per usual.

You wont happen to have the number m8 plz
Title: Re: Pension Changes
Post by: mexicopete on 21-11-15, 08:10PM
@viperex the telephone number for the pensions department is 03450701113 calls charged at local rate.
Title: Re: Pension Changes
Post by: silver surfer on 21-11-15, 10:02PM
Quote from: viperex on 21-11-15, 01:30PM
Hi new member been at working nights for 4 months and in this months wage slip was charged £40  smart pension builder how do i opt out as i never opted in ? registered on the colleague forum but it says need a enrollment number which i dont have

If you had a pension deduction on Nov 20th pay that payment would be into the scheme that is closing this weekend. You would have been auto enrolled into the scheme after 3 months service or if you had opted out for more than 3 years or if you have recently 22 years of age.

DURACELL - If the original poster met one of the above conditions they would automatically have been enrolled by law. Tesco would have no other option to but to enrol him in the old scheme. Your comment about not believing that they did is irrelevant. We can all blame Tesco for decisions they have made but on this one their hands are tied.

"They have done this with quite a few new starters in our store, some of them are just eighteen years of age, you can ring the pension dept. and they will cancel the pension and refund the pension payments on the next available pay date. Just another case of Tesco and common sense being at odds as per usual."


MEXICOPETE - Sorry this is not entirely true either. As the DB scheme is closed phoning the Pension dept is pointless - they cannot opt you out from a scheme that is now closed. However what will happen now is that a closing statement will be sent to each member in January telling them how much their pension is worth along with the options they have. As VIPEREX has less than 2 years in the scheme he will have the option to have a refund of the one months contribution he paid. He will need to return the declaration form that will be included with his closing statement. It will then take up to 8 weeks for the refund to be paid back in his wages. These statements are unlikely to land before the Jan 15th pay day so a refund is unlikely before February at the earliest - it is possible he might not get his hands the money until  March. Again I have to point out that this has nothing to do with a lack of common sense at Tesco it the procedure under pensions law. I don't understand why your new starters under 22 years of age would have been auto enrolled. They only way that would happen would be if the Personnel/HR had inputted there details incorrectly.

"Forgive me if this has already been covered. I was looking at the pension booklet and noticed that if I increased my contribution then my beneficeries would receive 5x my pay but if I stayed at the basic contributed by Tesco then it would only be 1x my pa"



LUCGEO

The pension booklet does not say that. I think you have misread it. If you are an active contributing member of the new scheme at any percentage then there is a 5 x salary life assurance payout for death in service. If you have opted out or are not yet enrolled this drops to 1 times your salary.

Title: Re: Pension Changes
Post by: mexicopete on 22-11-15, 05:09AM
Six eighteen year olds enrolled during the past year, that's quite a lot of incorrect inputting is it not silver surfer  :question: :question: :question: :question: Typical Tesco in my honest opinion. All of them had to reclaim the money from the company.
Title: Re: Pension Changes
Post by: lucgeo on 22-11-15, 09:12AM
Ah silver surfer yes thank you.

I have just re read it, perhaps it would have been better if they had just said if you opt out then it's 1x pay?
Title: Re: Pension Changes
Post by: Duracell on 22-11-15, 12:55PM
Silver surfer

Quote
DURACELL - If the original poster met one of the above conditions they would automatically have been enrolled by law. Tesco would have no other option to but to enrol him in the old scheme. Your comment about not believing that they did is irrelevant. We can all blame Tesco for decisions they have made but on this one their hands are tied.

I see your point I do.
Perhaps they are now being extra vigilant considering the current situation with the SFO and the DPA.

At least this particular nonsense has a bit of a safety net for the individual concerned, an option to refund.

On the plus side what was the in service death benefit on the scheme in question? At least they have that for one month for £40.
Title: Re: Pension Changes
Post by: Red Rock on 22-11-15, 10:14PM
Duracell,

Just a thought, the amount of time you spend on here typing Articles which could be entered into The Guardian.  Do you have a regular gainful employment?  Just wondering.
Title: Re: Pension Changes
Post by: Duracell on 23-11-15, 04:47PM
How much time do I spend on Here?

Am I cramping the style of another ?


Title: Re: Pension Changes
Post by: Red Rock on 23-11-15, 07:18PM

Duracell,

You might be cramping the style of another, but as I quoted "just wondering" on the time you must spend researching and typing articles.

I was going to nominate you for the VLH most contributed correspondent in the New Years honours list, but my vote lies else where now.

Title: Re: Pension Changes
Post by: lucgeo on 23-11-15, 07:24PM
Duracell

Are you cramping another's style?? HELL NO!!
Title: Re: Pension Changes
Post by: Duracell on 23-11-15, 07:33PM
Apologies Red Rock, I sometimes get defensive when others are curious about my work.

I think I was in the dog house for the time it took that I wasn't doing other things.

I hate things not making sense, I prefer it not to be nonsense.


Title: Re: Pension Changes
Post by: Red Rock on 23-11-15, 07:43PM
Duracell,

Since I joined VHL you have contributed a lot of interesting articles on here along with a few other individuals; I don't know how you can be so dedicated to this site.  But please keep scribbling away!  Regards
Title: Re: Pension Changes
Post by: trigger on 23-11-15, 07:51PM

Red,i think i have an idea. ;D :D ;D ;D ;D
Title: Re: Pension Changes
Post by: Duracell on 23-11-15, 07:57PM
Red Rock  :thumbup:
Title: Re: Pension Changes
Post by: trigger on 23-11-15, 08:07PM
Out of the papers sent out,regarding industrial action over pensions..only the old sites sent them back,the rest are full of eastern europeans who do as there told.
Title: Re: Pension Changes
Post by: Loki on 23-11-15, 08:16PM
Quote from: Duracell on 23-11-15, 07:33PM
I hate things not making sense, I prefer it not to be nonsense.

Why do the Working Time Directive, the HSE Guidelines and the Partnership Agreement come to mind?  ;)

Title: Re: Pension Changes
Post by: Duracell on 23-11-15, 08:22PM
The only consistancy is the inconsistancy.

Ageism is not allowed it is a protected characteristic in the equality act.

Minimum wage different based on age.
Redundancy pay different based on age.

>:(
Title: Re: Pension Changes
Post by: trigger on 23-11-15, 08:27PM
 ;D ;D ;D ;D ;D,,i cant comment to busy . ;D ;D ;D ;D ;D ;D
Title: Re: Pension Changes
Post by: lackofinterest on 25-11-15, 12:16PM
can any one tell me when we will receive the letter which contains the enrollment number to opt out of the new pension plan. cheers
Title: Re: Pension Changes
Post by: part of the problem on 25-11-15, 12:34PM
Its at the bottom of your payslip mack
Title: Re: Pension Changes
Post by: silver surfer on 30-11-15, 11:10AM
Quote from: part of the problem on 25-11-15, 12:34PM
Its at the bottom of your payslip mack

This is incorrect. The code on the payslip is to register at the colleague room it is not your new pension enrolment number. You will have a letter from Legal & General by 5th December with enrolment information.
Title: Re: Pension Changes
Post by: gomezz on 04-12-15, 11:42AM
Just had the letter from L&G and opted out which was easy, peasy to do, just having to keep clicking on the "Are you sure", "Are you really sure?"  "Are you really, really sure" options.
Title: Re: Pension Changes
Post by: backlash on 17-12-15, 06:51AM
Could someone please explain how do I opt out of the new 'retirement savings'?
Title: Re: Pension Changes
Post by: gomezz on 17-12-15, 10:48AM
Follow the instructions in the letter.
Title: Re: Pension Changes
Post by: fargone on 17-12-15, 04:06PM
With the previous scheme, why was the pension deficit allowed to become so large?
Title: Re: Pension Changes
Post by: Blondie1981 on 17-12-15, 05:08PM
Perhaps the MM liked to boast about the best pension in the sector but didn't like to actually fund it...Maybe they just didn't understand the implications of the advice they received...Maybe they were just incompetent ....Who knows?...One thing is for sure, no one is going to admit is was their fault.
Title: Re: Pension Changes
Post by: mexicopete on 17-12-15, 06:40PM
Quote from: fargone on 17-12-15, 04:06PM
With the previous schem, why was the pension deficit allowed to become so large?

Because the Trustees, did not bring the company to book, they had a duty of care to all of the Pension scheme members, but stood by and nodded everything through that was going on. These same people will most probably be the Trustees for the new scheme. I have asked about the trustees actions regarding the pension deficit on more than one occasion during the pension consultation. No answers were forthcoming despite many requests. :o :o :o
Title: Re: Pension Changes
Post by: oliver on 17-12-15, 07:58PM
 corruption  at its best,business as usual ,just like when tesco gave usdaw thousands of pounds  to keep them going years ago and  we all know why so they can control staff easier with partnership agreement
Title: Re: Pension Changes
Post by: mosquito on 18-12-15, 11:52AM
I have opted out of the new pension scheme, with 2016 just around the corner and possible even more uncertainty around our jobs, I didn't want to pay pension contributions for a couple of months only to be told my job would no longer exist.
Title: Re: Pension Changes
Post by: tumshie on 18-12-15, 03:05PM
If that happened, mosquito, you could claim your money back.
Title: Re: Pension Changes
Post by: silver surfer on 20-12-15, 11:27AM
Quote from: mosquito on 18-12-15, 11:52AM
I have opted out of the new pension scheme, with 2016 just around the corner and possible even more uncertainty around our jobs, I didn't want to pay pension contributions for a couple of months only to be told my job would no longer exist.

You should have waited till the end of Jan - you would have qualified for the bonus payment into your pension pot. If you are on 20k a year that would be about £385 for one months contribution of about £80. You would have walked away with £465 if your job came to an end and you are over 55. If you were under 55 you could collect it when you are 55. You have thrown good money away. To anyone thinking about opting out straight away - think twice - it maybe better to wait till the end of Jan.
Title: Re: Pension Changes
Post by: blutopia on 15-01-16, 05:25PM
Just checked the website to see if my 'one-off payment' has been paid in to my account yet - it hasn't.

What my checking did reveal, though, was that my 'investment' has already gone DOWN by more than £5 in just one month!
Title: Re: Pension Changes
Post by: Twinkeltoes1 on 15-01-16, 06:02PM
No pension increase for us pensioners this year...
Title: Re: Pension Changes
Post by: fruitdogs on 18-01-16, 01:35PM
I received my statement for the closure of the defined benefit scheme today. One of the options is to transfer it to the  new scheme. Do any of our financially savvy colleagues on here, have a view as to the  benefit, or otherwise of this please.
Title: Re: Pension Changes
Post by: Morris999 on 21-01-16, 03:23PM
Logged into the new pension website, and it seem Tesco is up to its old tricks again!
Not only hasn't the one off payment been put in yet, but neither has last Friday's contributions!
It seems they are holding onto our pension contributions for awhile before transferring them!
Title: Re: Pension Changes
Post by: blutopia on 21-01-16, 06:30PM
Quote from: fruitdogs on 18-01-16, 01:35PM
I received my statement for the closure of the defined benefit scheme today. One of the options is to transfer it to the  new scheme. Do any of our financially savvy colleagues on here, have a view as to the  benefit, or otherwise of this please.

You pays your money and takes your choice!  You will be gambling the certainty of a predictable income at retirement for the uncertainty of how well L&G invest your money. Much depends on your attitude to risk and how close you are to retirement.  The Transfer Pack might contain advice, so no harm in requesting it.
Title: Re: Pension Changes
Post by: redders on 21-01-16, 07:07PM
Fruitdog leave it where it is you will lose money transferring it and L&G would love to get there hands on it, if you are 55 now I say take it now.part of the deal with the union on the new pension is anyone taking the old one in the next 3 years will get the full benefits as they would on retirement at full pension age.
Title: Re: Pension Changes
Post by: londoner83 on 21-01-16, 07:20PM
I'd leave it where it is too much if a risk putting your savings into L&G.....If Tesco ever failed as UK'S largest private employer you would hope government would step in and do something about our pensions. Sadly if a financial institution went under I doubt the government would be as willing to help.
Title: Re: Pension Changes
Post by: were doomed on 21-01-16, 09:35PM
Just a observation it says on my pension closing statement that if I die before pension age it will pay a cash lump sum of 5 years pension is this in addition to the 5 years salary?
Title: Re: Pension Changes
Post by: Duracell on 21-01-16, 09:41PM
The closed scheme pays 5 times your pension figure.
The new scheme pays 5 times your salary ( which is why USDAW recommend being in the new scheme as appossed to not.

Your dependants get more from both schemes paying on death in service compared to just the old scheme.
Title: Re: Pension Changes
Post by: were doomed on 21-01-16, 09:45PM
Forgive me if I appear thick but as I understand it on joining the new scheme it's just 5 times my salary ?
Title: Re: Pension Changes
Post by: universal witness on 07-07-16, 01:05PM
I am peeved............
Over 55 and Tescon said I could not transfer my old pension into the New savings scheme  (anybody else had this  slap in the face) because of my age regardless of what........

I watch the new saving scheme for my age microscopically.............the denial of transfer in the last 10 days alone has cost me £5,000 scaling up the performance...........gutted
Title: Re: Pension Changes
Post by: Mozzer on 07-07-16, 02:07PM
I didnt think anyone could anyway,the old pensions just makes whatever percentage per year if im corect.
Title: Re: Pension Changes
Post by: fruitdogs on 10-07-16, 10:34AM
Does anyone know in simple terms, how removal from the SMART pension affects us. I received a letter this week saying I don't earn enough. How sad considering I'm full time.
Title: Re: Pension Changes
Post by: Rad on 10-07-16, 11:08AM
Quote from: universal witness on 07-07-16, 01:05PM
I am peeved............
Over 55 and Tescon said I could not transfer my old pension into the New savings scheme  (anybody else had this  slap in the face) because of my age regardless of what........

I watch the new saving scheme for my age microscopically.............the denial of transfer in the last 10 days alone has cost me £5,000 scaling up the performance...........gutted

Everyone who moved to the new pension scheme has lost thousands compared to what was projected under the old scheme.  And are worse off every month until they are 67.   Everyone. 
Title: Re: Pension Changes
Post by: antico on 10-07-16, 12:09PM
fruitdogs: you are not being taken out of the pension, rather the way your contributions are paid is being changed. SMART or salary sacrifice as it is also known meant that both you and Tesco paid slightly less National Insurance. This will no longer apply to future pension contributions. Hopefully that puts your mind at rest .
Title: Re: Pension Changes
Post by: fruitdogs on 10-07-16, 02:54PM
Thanks antico. I realised I wasn't taken out of the pension, but wondered how it affected me. Adversely probably as always.
Title: Re: Pension Changes
Post by: Mozzer on 10-07-16, 04:02PM
Rad-every body will lose thousands because the old pensions were frozenand the new investment we are investing is is NOT a pension its just a savings scheme,simple.
Title: Re: Pension Changes
Post by: AlexM on 10-07-16, 05:12PM
And because the old pension was "contracted out" of higher NI payments (to save tesco money) many people will not get the full state pension when they retire. Might be something worth checking on the Government Gateway if you have less than 15 years left to retirement.
Title: Re: Pension Changes
Post by: Hammer10 on 10-07-16, 06:42PM
I checked mine I get the full amount on 14 years to go.
Title: Re: Pension Changes
Post by: troll-hunter on 16-08-16, 06:15AM
Is there a yet another change to the pension in the offing, hearing rumours about something on our t*and a publication of some sort?
Title: Re: Pension Changes
Post by: Neil23 on 17-10-16, 04:52PM
Hi, I'm not sure if I'm permitted to create a new thread or not so maybe I could ask for help here;

I recently left Tesco due to the restructure. I could've stayed but opted for Aldi. Anyway I, stupidly, ignored the pension/Savings plan. Originally I started my payments yo the original pension plan but continued to pay when it changed to the new plan. In total I was paying for less than two years. Am I entitled to claim back this money? I've recently been told it is possible. Cheers.
Title: Re: Pension Changes
Post by: terra on 17-10-16, 05:34PM
With the new scheme if you are over 55 you can take your money out...with the old one If I remember right you will get a refund less the tax relief at some point in the future
Title: Re: Pension Changes
Post by: Neil23 on 17-10-16, 06:41PM
So does this mean that I'm entitled to contact Tesco and get back my money that I paid in?
Title: Re: Pension Changes
Post by: redders on 17-10-16, 07:16PM
The old pension is frozen if I were you take it know, part of the deal of bringing in the new one is if anyone was too take it in the next 3 years would get full benefits as if retiring at full state pension age. The new one if you have been paying in less then two years you should get all your contributions back, usually this happened when you gave notice of leaving the company. But so much has changed with the rules on pensions I could be wrong, ring them ask the question good luck.
Title: Re: Pension Changes
Post by: redders on 17-10-16, 07:28PM
Troll hunter, just been given a new contract to sign and the section on the pension has changed, it now says that your contributions to the scheme will be a salary sacrifice arrangement this means a formal change to my salary, if I choose to opt out or Tesco think it's not suitable for me then contributions will be deducted each month and paid directly into the pension scheme on my behalf. What does this mean anyone.
Title: Re: Pension Changes
Post by: happydays04 on 06-11-16, 05:58PM
bit confused if anyone can help, my spouse died, he was on the old tesco pension scheme that I know nothing about, he worked there for about 9 years.  I have 3 children, I have been contacted by them as knew nothing about any pension scheme although he had to stop work there due to ill health. I have sent the documentation they require, can anyone tell me if would there be any pay out and what with this?? thanks
Title: Re: Pension Changes
Post by: Loki on 06-11-16, 06:43PM
Quote from: Neil23 on 17-10-16, 04:52PM
Hi, I'm not sure if I'm permitted to create a new thread or not so maybe I could ask for help here;

I recently left Tesco due to the restructure. I could've stayed but opted for Aldi. Anyway I, stupidly, ignored the pension/Savings plan. Originally I started my payments yo the original pension plan but continued to pay when it changed to the new plan. In total I was paying for less than two years. Am I entitled to claim back this money? I've recently been told it is possible. Cheers.

http://www.pensionsadvisoryservice.org.uk/about-pensions/pension-reform/short-service-refunds (http://www.pensionsadvisoryservice.org.uk/about-pensions/pension-reform/short-service-refunds)

"As of 1 October 2015, members of occupational defined contribution pension schemes will no longer be entitled to short-service refunds if they leave employment (or opt out) with less than two years qualifying service.

The change only applies to individuals who became members of an occupational pension scheme on or after 1 October 2015, or who re-joined an arrangement having already taken a refund or transferred out.

Those with less than 30 days service will still be able to request a short service refund of just their contributions.
"
Title: Re: Pension Changes
Post by: Neil23 on 13-11-16, 08:12PM
If I was to take back my contributions how would this be paid and also, from the experience of others, how long would I need to wait? I've phoned Tesco and they're no help. Cheers.
Title: Re: Pension Changes
Post by: Expressdude2016 on 13-11-16, 08:30PM
Hi Neil you only receive a refund if you cancel policy within first 30 days. After this any contributions are locked until you reach 55.  If you are 55 then you would be bets contacting legal and general. Remember its not Tesco who administer this scheme.
Title: Re: Pension Changes
Post by: Neil23 on 13-11-16, 09:58PM
I was informed over the phone that as I was contributing for less than two years I'd receive a refund. This is the old pension I'm talking about.
Title: Re: Pension Changes
Post by: Expressdude2016 on 14-11-16, 12:04AM
Ah ok I understand you should receive your money within around 8 weeks. Needs to go though pension then sent to payroll who then need to process tax and NI.
Title: Re: Pension Changes
Post by: CoffeeGate on 06-02-17, 07:45PM
Does anybody know how to opt back out of the new pension scheme? I can't seem to find information anywhere on OurTesco or the actual Tesco Pension website.
Thanks in advance.
Title: Re: Pension Changes
Post by: Expressdude2016 on 06-02-17, 08:13PM
click on help and contact link at bottom of page on retirement savings page then theres tabs at top for opt out.

https://www.legalandgeneral.com/workplacebenefits/microsites/tesco/rsp/what-else-do-i-need-to-know/how-do-i-opt-out/ (https://www.legalandgeneral.com/workplacebenefits/microsites/tesco/rsp/what-else-do-i-need-to-know/how-do-i-opt-out/)
Title: Re: Pension Changes
Post by: CoffeeGate on 08-02-17, 02:06PM
Thank you very much kind sir!
Title: Re: Pension Changes
Post by: pippa1 on 17-03-17, 02:54PM
Hi just got my new pension yearly statement, can anyone help I'm a bit confused.  If I was paying in to the old pension which is frozen and I've started to pay in to the new one, does that mean that I have two pensions with Tesco or one?
Title: Re: Pension Changes
Post by: silverBlade on 17-03-17, 03:43PM
Two pensions, you can't combine them but if you leave the company you maybe able to transfer them into your new employer's scheme.
Title: Re: Pension Changes
Post by: Yorkshire dave on 17-03-17, 05:04PM
Quote from: silverBlade on 17-03-17, 03:43PM
Two pensions, you can't combine them but if you leave the company you maybe able to transfer them into your new employer's scheme.


Wrong!! U CAN put old one into new one although its not a good idea because old one was much better pension
Title: Re: Pension Changes
Post by: weebee on 18-03-17, 12:03PM
got statement on new pension apparently an "award winning Tesco Retirement Saving Plan" well not going by my figures and a few of the colleagues in my store ,think I serious need to look at closing a c**p pension whether its award winning or not lol,anybody else disappointed at the figures they have?
Title: Re: Pension Changes
Post by: Hammer10 on 18-03-17, 01:17PM
Yes how will I live on 40pound a month.
Title: Re: Pension Changes
Post by: AlexM on 18-03-17, 01:50PM
You can login online with legal & general to be able to see your pension & what funds the money is invested in. There are not many to choose from but you can change from the one the company automatically put you in.
It helps if you do a bit of research into personal pensions & how the funds work, so you know what you're doing.

I left the company last year (with only one years contributions into the new pension) & changed my funds soon after & the value has gone from £2900 to £3298 in 3 months. Maybe the default options/funds are not the best?

NB: if you do not understand investments & the risks involved, see a financial advisor for advice! Otherwise, make changes at your own risk - Fund values can go down as well as up!
Title: Re: Pension Changes
Post by: Yorkshire dave on 18-03-17, 05:32PM
Quote from: weebee on 18-03-17, 12:03PM
got statement on new pension apparently an "award winning Tesco Retirement Saving Plan" well not going by my figures and a few of the colleagues in my store ,think I serious need to look at closing a c**p pension whether its award winning or not lol,anybody else disappointed at the figures they have?


Yes very disappointed. Might take a look at lifetime is a due out next month
Title: Re: Pension Changes
Post by: Equalizer87 on 18-03-17, 07:25PM
Quote from: weebee on 18-03-17, 12:03PM
got statement on new pension apparently an "award winning Tesco Retirement Saving Plan" well not going by my figures and a few of the colleagues in my store ,think I serious need to look at closing a c**p pension whether its award winning or not lol,anybody else disappointed at the figures they have?

My sister is in the same position, she looked at what she had already and what she would end up with at 65. Fair to say, she worked out taking  her current contributio, double it and store it in one her savings accounts would give her a far better reward over the same time. She would end up with almost trebling it.
Title: Re: Pension Changes
Post by: just curious on 28-03-17, 11:24AM
Quote from: Yorkshire dave on 17-03-17, 05:04PM
Quote from: silverBlade on 17-03-17, 03:43PM
Two pensions, you can't combine them but if you leave the company you maybe able to transfer them into your new employer's scheme.


Wrong!! U CAN put old one into new one although its not a good idea because old one was much better pension
Just wondering what other members opinions / views are of transferring any money out of the Tosco pension schemes ( regardless of scheme ) into there new employers work place pension scheme if they have left the company for new employment or been given redundancy and had to get another job ?

What would your opinions be transfer the money and run before Tosco pension schemes go the same way as Woolworth's , BHS , Comet etc or would you trust leaving the fund(s) in Tosco pension schemes and risk loosing the money should the company have financial difficulty what with the fines they are going to be paying for the fraudulent accounting scandal and the take over of Booker's cash and carry should it go through ?

As with any transfer of pension funds should you take that route there would be risk involved any way, other peoples thoughts and opinions would be appreciated and they would be views / opinions only not financial advice which would require a professional adviser.  Thank you .
Title: Re: Pension Changes
Post by: ZyDer on 16-08-17, 01:34PM
I have suspected this for a while but L&G are definitely taking the Mick...

If you log on to their site and look at your pension transactions then you will see the transactions from this month. 3rd August management charge 4th August staff and company contributions.

3rd August values
Tesco Equity Fund   1,377.00
Tesco Corporate Bond Fund   1,133.40
Tesco Diversified Fund   1,285.50

4th August Values
Tesco Equity Fund   1,391.40
Tesco Corporate Bond Fund   1,139.70
Tesco Diversified Fund   1,313.40

When L&G are taking money out the fund values are low, when we are putting money in the fund values are high. Even though the management charges are very low, it does not look right.
I know fund values do fluctuate but rises of 1.0%, 0.6%, 2.2% over a single day - in their favour - yeah right.

Anyone know who I could complain about this to?
Title: Re: Pension Changes
Post by: AlexM on 16-08-17, 03:27PM
I left tesco last year & transferred the 1 years worth of contributions in the new pension DC scheme to my new employer. Mainly cos all I could do with it at L&G was transfer it or change funds, & there's only 8 funds to choose from! So I moved it to where I have a much bigger & better choice of funds.
My 10 years worth of contributions into the old DB scheme I have left. I can't see Tesco going bust & even if they do it is protected by the Gov. If only move it if they gave me a stonkingly good CETV. Otherwise, it is still a really good pension to be in.
Title: Re: Pension Changes
Post by: optout on 24-10-17, 08:49PM
@ZyDer

this page has some advice

http://www.which.co.uk/consumer-rights/advice/who-do-i-complain-to-about-my-pension-scheme (http://www.which.co.uk/consumer-rights/advice/who-do-i-complain-to-about-my-pension-scheme)
Title: Re: Pension Changes
Post by: JL on 25-10-17, 02:35AM
Today I closed my Tesco pension and decided to pay my contributions into a private pension. No job is for life at Tosco now!
Title: Re: Pension Changes
Post by: Welsh-Hugh on 25-10-17, 06:35AM
So you could pay in Tesco pension 7-5% and Tesco will match it. 15 % in total.
Now to get 15% in your private pension you have to put in 15% all by yourself.
🤔🤔🤔🤔🤔🤔🤔
Title: Re: Pension Changes
Post by: redders on 25-10-17, 09:48AM
 :thumbup:
Title: Re: Pension Changes
Post by: arlo on 25-10-17, 10:29AM
how do we access the info on our old pension ...how much its for ect
Title: Re: Pension Changes
Post by: his scots tie on 25-10-17, 10:37AM
The Defined Benefit pension was far far better than the new Tosco Pension.You could be many thousands worse off with the pension we are in at moment.Another way of robbing the staff.
Title: Re: Pension Changes
Post by: OvaSees on 25-10-17, 11:08AM
Quote from: Welsh-Hugh on 25-10-17, 06:35AM
So you could pay in Tesco pension 7-5% and Tesco will match it. 15 % in total.
Now to get 15% in your private pension you have to put in 15% all by yourself.
True, but that 15% is not tax-deductable, so that's not as big a hit in your pocket (net pay) as you might think. When you factor in the potential and projected long term returns of other schemes when compared to Tesco's, the economics of leaving the company scheme and joining a private one make more sense. Even as a privately operated scheme, Tesco's new one is just not that competitive if you compare the market and take the right long term view of your retirement plans. This is even more true when you consider that by putting people in this new scheme, Tesco shifted the investment risk of the pension funds of that new scheme from itself and onto you.

I came out of it too, and I put in 15% to a private scheme, but based on a comparison of both schemes I will get £1300 per year more in my private scheme than I would if I had stayed in Tesco's scheme at the maximum of 15%, and I could not afford to put more into Tesco's scheme in the form of additional contributions. Yes, my take home pay is now slightly smaller, but that difference is less than what I would have had to put into Tesco's scheme to get that same (higher) pension. In short, I'm slightly worse off now to be much better off in retirement.

Disclaimer: see a good independent pensions advisor, as I did. They explained that due to legislation changes and so many companies changing their schemes to make them more affordable, pensions these days are becoming like utility bills and car insurance - you have to shop around and compare the market, making your own decision based on your own plans and circumstances, there is no longer a 'one size fits all' solution. Too many people show apathy to pensions and tend to forget about them until they matter by which time it is too late. They key point is that it's all about you, your circumstances and your future plans, pensions are as individual as people.
Title: Re: Pension Changes
Post by: JL on 25-10-17, 02:13PM
 :thumbup:
Title: Re: Pension Changes
Post by: AlexM on 01-11-17, 08:32PM
Also remember that if you pay into a private scheme you still get the tax relief on it. So if you pay £100 in from your bank account, you get £25 tax relief so it's £125 that goes into your selected fund.
Title: Re: Pension Changes
Post by: Duff McKagan on 23-02-18, 08:13PM
Forgive me if I'm missing something here but I cannot find anywhere where it says what happens to pension contributions from Tesco if someone leaves the company, not as in retires...as in quits to find another job. I can see that the employee keeps the contributions they made up until the point they leave the company but I can't see where it definitively says what happens to the money Tesco puts in does the employee get to keep those contributions or not? It seems obvious that they should but I'd like to know for sure. Can anyone answer this please? I put in 6%..I get to keep that..Tesco puts in 6% but is it 100% certain that I'd keep what they had put in up until the point I left the company?
Title: Re: Pension Changes
Post by: notsofunny on 23-02-18, 08:36PM
If and when you leave you will get a letter to say what you can do with you pension pot, which would be the amount you put in and the amount put in by Tesco ,  From what I remember you will get the choice of keeping it with the Pension company ,or transferring it out to another company , (If you have the old ones then be very carful about moving them out) and remember that your fund will be charged for moving out ,, get in contact with the Pension company , the contact details are on the Yearly statement
Title: Re: Pension Changes
Post by: ZyDer on 24-02-18, 09:48PM
You can transfer your pot to another provider at any time. ( I have checked this)
You also retain the right to be be in the Tesco scheme. (and this)
So, if you don't like the new Tesco scheme - pay the 7.5% in, let Tesco match it, then transfer the pot to a scheme which you do like, every now and then.
Repeat process till you retire or leave.
Title: Re: Pension Changes
Post by: notsofunny on 25-02-18, 12:37AM
Sorry Zyder can you explain what you mean by( pay the 7.5% in, let Tesco match it, then transfer the pot to a scheme which you do like, every now and then.
Repeat process till you retire or leave.  ??? , and who told you to do this ?
Title: Re: Pension Changes
Post by: ZyDer on 25-02-18, 11:39AM
You can choose to pay any amount of your wages into the new Tesco L&G pension scheme.
Tesco will match the first 7.5% you pay in - effectively doubling your money.
If you don't like the new Tesco L&G pension scheme, transfer to a scheme you do like.
Nobody told me to do this, it's just a suggestion for maximising your pension pot in a scheme you like.
Title: Re: Pension Changes
Post by: Duracell on 17-10-18, 11:19AM
Zyder can you tell me when you do these periodic transfers out is there a charge or cost for doing so?
Title: Re: Pension Changes
Post by: sunshineman on 17-03-19, 01:49PM
I have a question. The new pension which came in, in 2015, I have yesterday received my statement. It says that I will receive in five years a lump sum of £1,300, which is when I retire. It then says that I will receive a payment of £111 a year for my pension. I worked out looking at my pot, I would have to live for 35 years to receive all my pot, does this really make sense and can I leave it.

I took a lump sum out of the older pension, and I currently receive £60 a month from that pension. I only took out £7,000.

So, I am wanting to know, if I can take out all the money from both pensions and put it to better use. It seems crazy that I have been paying into the pension for 15 years and all I will have to show for it when I retire is around £69 a month. Like what am I supposed to do with that, and how will it affect my state pension. I would also like to know how much state pension I would receive when I retire in five years.

[gmod]https://www.gov.uk/check-state-pension (https://www.gov.uk/check-state-pension)[/gmod]
Title: Re: Pension Changes
Post by: lucgeo on 18-03-19, 07:54AM
When the pension changed I took the whole of the DB pension out and closed it. It was an offer from the pensions, as a "maybe" at that time...after taking advice from another poster on here, I weighed up the options and decided to take the lot out.

Yes I paid a lot of tax for the remaining 25%, but as a part timer, I did get about a 5th back as a rebate at the end of the financial year. It enabled me to upsize my property, whilst remaining mortgage free. It's value has steadily increased, 10% in the last year alone. That's just my story........

Whilst I know it's not an option for everyone, I would bear in mind that on the pittance forecasts for the pension it is insulting, you will pay tax on the pension and it could take you just over the limit for any possible government allowances, when you retire.

I would encourage anyone to take a redundancy protection insurance out, on their mortgage, regardless how secure they think their job is.
Title: Re: Pension Changes
Post by: sunshineman on 17-04-19, 06:24PM
Hi, not sure if this is off topic or not. I have C O P D, and I took part of my legal and general pension a few years ago as a lump sum. I would like to retire early due to my illness, I have five years until I officially retire and would like to know if I can take the rest of the money from my pension, and if I am allowed to take money from the new pension after the last one closed down.

Title: Re: Pension Changes
Post by: Expressdude2016 on 17-04-19, 11:23PM
As long as you are 55 you can take early retirement with the old pension. The new pension though I think is 60 or 62 as new pensions have to follow government rules. Unlike when the old pension was in the go there is no longer the option of company retiring you early on health grounds and getting pension.
Title: Re: Pension Changes
Post by: Malridge on 18-04-19, 01:25AM
You can take the new pension at 55, I did it last year.
Title: Re: Pension Changes
Post by: sunshineman on 18-04-19, 11:59AM
Hi, I already receive money from the pension but it is worthless to be honest. I took around £3,000 out of the pension pot from the old pension and now they pay me £60 per month. The new pension pot I have not touched but I got a letter saying when I retire I will be given a lump sum of £3,000 and then paid £160 per year. It worked out how much was in the pension pot, and for me to receive every penny of the pension pot then I would have to live until I was around 105 years of age.

What I am trying to find out is, if I can just take all the money from both pensions and either invest it, or put it in the bank so I can retire early. Due to my C O P D I am not sure how much longer I will be able to work for as the air conditioning in Tesco is really affecting my C O P D.
Title: Re: Pension Changes
Post by: Charlie Harper on 18-04-19, 01:23PM
I can't say I'm 100% sure about the old pension, but the new one you most certainly can. Pensions are very flexible these days. Once you're past the age at which you can access your money, then you're pretty much free to do with it as you wish. Do be reminded however that after you've taken your 25% tax free amount, that the remainder is liable to tax. (If it takes you over your yearly tax free allowance of course).
Title: Re: Pension Changes
Post by: sunshineman on 25-04-19, 01:34AM
The old pension before they closed it, I took 25% out tax free. Now, today I was reading online that you can dip into your pension pot three times, is this true and if I take another 25% do I have to pay tax on it.
Title: Re: Pension Changes
Post by: sunshineman on 25-04-19, 01:56PM
Can someone please send me a contact number for Tesco smart pension or email address which closed in 2015. I have rang one number and it took me an hour to get through to the right person but then I forgot to ask a question. according to what I have been told, due to taking 25% as a lump sum six years ago, my pension is in a lifetime pension scheme where I currently receive around £60 per month which is rubbish after 14 years with Tesco. They have told me I cannot take anything out of the pension pot or transfer it.
Title: Re: Pension Changes
Post by: Baker1961 on 25-04-19, 04:37PM
Here is what I have done this year, I asked for a transfer value of all my pensions, if the amount on each pension is over a set amount you have to seek financial advice.

My old tesco pension is a set amount for life with death and spouse benefits, as I am in good health and have ten years to retirement it makes sense to leave it where it is.  If my health deteriorates and my e c expected life shortens I would transfer out in to a d c scheme.

I did transfer an old pension in to the new tesco scheme and it made in a year in interest 1800, I also changed from the default scheme to a draw down scheme on the legal and general account and I also upped my 7% and tesco match it on salary sacrifice.  I also had a interview with pension wise and checked to see if me and my wife get full state pension you need 35 years of nics, you can also get a free pension check with a financial adviser who will only charge if you take their advice, also check the .gov site for any old pensions you might have lost/forgotten, I found one that turned out to be worth a lot of money.
Title: Re: Pension Changes
Post by: Shoestring on 19-10-19, 08:11PM
I ended my contribution to the plan last week. Be damned if I am going to continue to pay nearly £40, give or take per pay for a measly less than £1 a week when I retire whether I can dip out a 25% or not.

No way am I allowing Tesco and Legal and General to invest my money to enrich themselves while I will barely afford a sandwich when I retire, NO.
May just as well give it into SAYE, at least I get back what I put in and no disappointment.

I will survive on State pension should I make it that far, if it's not enough to live on then I will expire my own life at my own will. I am not being a living picking corpse for any of them!
Title: Re: Pension Changes
Post by: Denbis on 19-10-19, 10:22PM
If a colleague cant afford to pay into plan i totally get it as unless you are high up in management or well off it is hard for most especially part timers. That said we have colleagues in their mid to late 50s in our department that have opted out as they say they will be retiring in a few years anyway. I dont understand this as Tesco match your contribution up to 7.5% so even if you were only in scheme for 1 year surely its still worth it??.
Title: Re: Pension Changes
Post by: Siwel123 on 19-10-19, 10:30PM
I'm curious how much every person is putting into their pension? Ie percentage.

The rule is half your age plus 1 for the percent, but as I'm only 19 then that means only putting in 10% in total, which seems low to me?
Title: Re: Pension Changes
Post by: Hammer10 on 20-10-19, 02:30AM
I am 56 still putting in 7.5% in the time it's been going got 12000 saved I know it's not a lot but it's more than I would have saved in the bank.
Title: Re: Pension Changes
Post by: Denbis on 20-10-19, 04:55AM
The same here Hammer10. Put in 7.5% since the scheme started which depending on what overtime available works out as anything from £80 to £110 a month and i also have just over £12,000.
So yes plenty of companies offer more but there are some that offer a lot less. I always think that all these colleagues opting out is what Tesco wants as it saves them Millions of pounds a year. I also think (but i may be wrong) its why they prefer PT to FT colleagues as a lot of those who are PT  cant afford to pay in.
Title: Re: Pension Changes
Post by: wizard on 20-10-19, 07:17AM
Siwel123 , don't forgot Tesco will match what you put in up to 7.5% so you are really saving 17.5%
Title: Re: Pension Changes
Post by: Siwel123 on 20-10-19, 07:50AM
Just want to aplogise and say the figure i qouted is for when you started the pension, which sounds a lot better.

I definitely think putting in 7.5% would be the wiset choice, simply because if tesco is going to double it for free.
Title: Re: Pension Changes
Post by: sunshineman on 15-03-20, 07:21PM
the new pension can we not just get our money back. my wife took a payout from the first pension, but the second pension is a waste of time. we read about it and she and don't quote me on this as these are not the exact figures but she will get £1,000 when she retires in three years time and then a year she will receive about £30 a month. can we not just take all the money out of the pot and either put it in the bank or invest it. she now is on 20 hours a week due to cut backs. we worked it out and for her to get what she has paid in, she would have to live until she was 102. her old pension because she took out 7,000 she only get £90 a month from that
Title: Re: Pension Changes
Post by: lucgeo on 15-03-20, 07:36PM
I have recently received a letter to state that the pension is moving...and do I want the total in cash?...bearing in mind I took my entire old frozen pension out early 2018, and made redundant may 2019...I have approx 1 grand in the new pension pot even though I was doing the max 7.5 contribution on a 22.5 contract since 2015. I've asked for the whole sum in cash, but hoping it hasn't now considerably dropped due to latest pandemic and trading market  ???
Title: Re: Pension Changes
Post by: NightAndDay on 15-03-20, 07:52PM
About  payslips, under SMART pension contributions, I was looking at my old payslips,  I chose to contribute 5% under the understanding that Tesco matches the contributuon, doing the calculation of 5% of my total base pay, sunday premium and holiday pay, the SMART pay element credited 5% exactly, why is Tescos contribution not itemised on the payslip, in my current job they're a lot more transparant about how they process pension payments.
Title: Re: Pension Changes
Post by: Welshie on 15-03-20, 09:04PM
@lucego , my husband took his whole pension pot from an old pension (not tesco) , it was done very speedily as hes classed as terminally ill , in 10 days it lost £5000 , so you'll be lucky to get anything.
Title: Re: Pension Changes
Post by: lucgeo on 15-03-20, 10:17PM
That's a real low blow for your hubby, you've got enough on your plate without losing that much... :-X

With regard mine, as they sent the letter offering the option during the outbreak, I will suggest they should have frozen the letters, rather than lose me money...something everyone should consider!
Title: Re: Pension Changes
Post by: NightAndDay on 16-03-20, 12:14AM
Does anyone know where or how you can get a log of all pension deposits made by you and Tescos matching contributions?
Title: Re: Pension Changes
Post by: NightAndDay on 18-03-20, 01:53PM
On the plus side to the recent hammering to pension growth fund values, while the price per unit is lower than it was, our pension contributions should buy more units due to the lower value, this should equate to greater returns when the stock market inevitably bounces back.
Title: Re: Pension Changes
Post by: Thevamps on 18-03-20, 03:12PM
After almost 29 years working for Tesco's I got a letter from legal and general today saying my pension is worth £5768 I know it changed a few years ago so  does anyone know where all my other contributions have gone, because that's disgusting if that's my pension that I'm allowed to live on !
Title: Re: Pension Changes
Post by: Pathfinder on 18-03-20, 03:17PM
Legal and general is tesco savings plan , you will have a frozen pension also which you can access via my pension tesco ...choosing the closed pension.
Title: Re: Pension Changes
Post by: Nomad on 10-04-20, 11:57AM
https://www.pionline.com/pension-funds/tesco-plans-one-time-payment-plug-uk-pension-deficit (https://www.pionline.com/pension-funds/tesco-plans-one-time-payment-plug-uk-pension-deficit)

QuoteTesco PLC, Cheshunt, England, recorded a 10% increase in its group pension deficit to £3.1 billion ($3.8 billion) but plans to eliminate most of the shortfall with a one-time contribution.
Title: Re: Pension Changes
Post by: Redshoes on 10-04-20, 08:55PM
Ring the pension line. Not sure how well manned this during the crisis however.
Title: Re: Pension Changes
Post by: sunshineman on 28-09-20, 04:37PM
I am really confused with the pension. During my 15 years at Tesco i have had three companies dealing with our pension. I have one year before i can offically retire and currently receive £90 a month from my Legal and General pension after taking a lump sum of £7000 seven years ago. The new pension which is worthless, says that i will receive a lump sum of around £3000 in one year and around £900 a year.

I am trying to work out if the first pension I had with Tesco, if that amount got transfered over to Legal and General. Also, with the new pension we have, instead of me getting just £900 a year, can I not just get it as a lump sum. With what I have paid into the third pension, I will be 100 years old before i get back what i have paid in.

Why are the pensions so bad for Tesco. My brother in law works for the NHS as a porter. He joined the pension last year and he retires in four years and when he leaves he gets a lump sum of £15,000.

Also, does anyone know how to track a pension. I am trying to find out if my pension from Woolworths is still active that i had more than 30 years ago.
Title: Re: Pension Changes
Post by: barafear on 28-09-20, 07:05PM
I don't know too much specifically about the Tesco pension scheme - other than the fact it is indeed a "poor" pension. You cannot really compare it to the NHS Pension scheme - as NHS pensions are well know to be one of the main perks of working for the NHS.

Ok.....in terms of your third pension with Tesco - how long have you been in it? I can't remember when it started - is it about four years?
How much did you pay in?
And how much does it "state" it's worth now ? i.e. what is the value of your pot?

The £900/year pension, I assume, is the option to use the pot to buy an annuity (a yearly pension).

In terms of taking it all as a lump sum, you might/should be able to do that, but you may have to pay tax on 75% of it.

That's not 75% tax - but whatever your tax rate is on 75% of the sum.

https://www.gov.uk/tax-on-pension/tax-free#:~:text=If%20you%20have%20%C2%A330%2C000,25%25%20is%20tax%2Dfree.


I think there is a pension tracing scheme - have a Google!!

Title: Re: Pension Changes
Post by: grim up north on 28-09-20, 07:13PM
Quote from: sunshineman on 28-09-20, 04:37PM


Why are the pensions so bad for Tesco. My brother in law works for the NHS as a porter. He joined the pension last year and he retires in four years and when he leaves he gets a lump sum of £15,000.

I dont think the T* one is particularly bad, but the NHS one particularly good
Title: Re: Pension Changes
Post by: notsofunny on 28-09-20, 09:16PM
£15K after 5 years sounds great , but ?  just seems a large amount ,and that as a lump sum which sounds even more hard to understand , Porters get about £16 k a year and if he is going to get £15 k lump sum which if i am correct would be 50% of his pension which in turn would mean that the NHS is paying out 2 years wages for every 5 years work seems a great rate of return ,,,
Title: Re: Pension Changes
Post by: NightAndDay on 28-09-20, 09:23PM
Tesco used to have a good pension scheme, now it's very much a standard run of the mill scheme, there are worse, but it's nothing special.
Title: Re: Pension Changes
Post by: arlo on 28-03-23, 12:17PM
Did anyone ever do anything with their closed pension scheme, like move the lump sum into the new pension scheme or even move it else where ?
Title: Re: Pension Changes
Post by: helpme on 19-04-23, 11:31PM
While we're on the subject of pensions does anyone know the details of the plan preceding the current one that closed around nine or ten years ago?
I left this 💩show of a company a year or so ago and took the current pension with me to my new employer (Sainsburys😁) but the old one is still retained by Tesco and I want it so I have no ties at all with this company anymore.
Title: Re: Pension Changes
Post by: HollyMason on 01-05-23, 11:57PM
Can someone clarify something for me but i was told by a colleague that if you get sacked from Tesco you lose all the contributions that Tesco has paid in to your pension, you will only be entitled to what you paid in.
Title: Re: Pension Changes
Post by: lucgeo on 02-05-23, 07:46AM
Quote from: helpme on 19-04-23, 11:31PMWhile we're on the subject of pensions does anyone know the details of the plan preceding the current one that closed around nine or ten years ago?
I left this 💩show of a company a year or so ago and took the current pension with me to my new employer (Sainsburys😁) but the old one is still retained by Tesco and I want it so I have no ties at all with this company anymore.

I took my old pension out whilst I was still working for Tesco, I contacted them on Tesco pension email address...they wanted my employee details i.e. employee number...store number...NI number etc...be warned though only the first 25% is tax free and you'll get taxed on the remaining amount as part of your predictive earnings for the rest of the year , so you'd be better taking it at the end of the financial year.

Did you get the pension pot annual review, the details of contact should be in there also.
Title: Re: Pension Changes
Post by: FarmerFred on 02-05-23, 09:41AM
Quote from: HollyMason on 01-05-23, 11:57PMCan someone clarify something for me but i was told by a colleague that if you get sacked from Tesco you lose all the contributions that Tesco has paid in to your pension, you will only be entitled to what you paid in.
An employer's contributions can't be below the legal minimums regardless of reasons for termination of employment. It's also worth noting that Tesco have appointed Legal and General to manage the scheme - as a third party, Tesco do not have access to the funds held on your behalf.
Title: Re: Pension Changes
Post by: doneone on 06-08-23, 10:09PM
I retired from Tesco and my state pension was not what i expected, when i enquired with the gov state pension i was informed because i was in the Tesco pension i had been contracted out, so did not have enough stamp for a full pension, so if told about this when joining the pension it could have been sorted.
Title: Re: Pension Changes
Post by: BritishRacingGreen on 07-08-23, 06:42AM
But do you not receive part of the pension you are getting now as graduated pension? I contracted out many many years ago and part of my state pension shows as graduated. I'm not losing out - it's a decision I took at the time with the company I worked for then.
Title: Re: Pension Changes
Post by: terra on 07-08-23, 08:27AM
I thought you could make up missing National insurance payments, if you look at money saving expert, Martin Lewis flagged this up?
Title: Re: Pension Changes
Post by: BritishRacingGreen on 07-08-23, 11:29AM
You can Terra - you can access NI payment years online at Gov.uk and make any payments that you need. You can also check any NI credits that have been submitted.
Title: Re: Pension Changes
Post by: barafear on 12-02-24, 06:29PM
Hi, thought I'd reignite an old thread. Just wondered whether people on here are aware you can access your up to date pension pot value ( new scheme from 2015) on ourtesco. Also, you are able to changed which pension funds you invest in (from a list of funds on l&g website). Some of the funds have vastly different performance records.....can I ask whether people could say how well their pot has performed and from when....for example, if you only joined it in 2018, then say....from 2018, 25% growth......also be interested to know what people's employee contribution % is......so to kick off.....in since sept2016 and growth of 26%....cheers
Title: Re: Pension Changes
Post by: Charlie Harper on 13-02-24, 06:39AM
Mine started when the new scheme started...30th December 2015. Currently 44.83% up.
I've changed my investments from the default. I've been regularly contributing the 7.5% but I do boost that every now and again, I'll have the odd month where I'll increase it to 20% or 25%.
Title: Re: Pension Changes
Post by: Johnzo88 on 13-02-24, 09:45AM
Started in the new scheme Dec 15'. Up 37%. In default lifestyle fund but looking to change as want to take a little more risk, as im still 25+ years away from retirement. Put in 7.5% of my wage each month to get maximum from tesco.
Title: Re: Pension Changes
Post by: barafear on 13-02-24, 10:13AM
Quote from: Charlie Harper on 13-02-24, 06:39AMMine started when the new scheme started...30th December 2015. Currently 44.83% up.
I've changed my investments from the default. I've been regularly contributing the 7.5% but I do boost that every now and again, I'll have the odd month where I'll increase it to 20% or 25%.
Well played.
Title: Re: Pension Changes
Post by: rupert7 on 13-02-24, 10:32AM
the new pension is not has good as the old one,if your young and will be with tesco for a long time then put in 7.5 of your wages each month and tesco will do the same,that will be the only way you will come out with a decent pension, the  (-*-) pension will be your life line when you stop working, so do all you can to top it up.
Title: Re: Pension Changes
Post by: Hammer10 on 13-02-24, 10:54AM
I bumped mine up to 9% as I get closer to retirement going to bump it up more to what I can afford .
Title: Re: Pension Changes
Post by: barafear on 13-02-24, 11:01AM
Even though Tesco don't match contributions above 7.5%, if you can afford it you still benefit from tax and possibly NI savings from bumping up your contributions. 

However, flipside is the investment performance of your pot and also how you "take" your "pot". Not much point in saving 20% tax now if you end up paying 45%+ when you retire.

So "Hammer10", how's your pot grown since you started?
Title: Re: Pension Changes
Post by: Hammer10 on 14-02-24, 07:58AM
Currently sitting at 34000 plus I took my other pension 6 years ago to pay my mortgage off still got 7 years left .till I retire no chance of paying 45% tax it won't get that high.
Title: Re: Pension Changes
Post by: NightAndDay on 14-02-24, 01:35PM
Quote from: barafear on 13-02-24, 11:01AMEven though Tesco don't match contributions above 7.5%, if you can afford it you still benefit from tax and possibly NI savings from bumping up your contributions. 

However, flipside is the investment performance of your pot and also how you "take" your "pot". Not much point in saving 20% tax now if you end up paying 45%+ when you retire.

So "Hammer10", how's your pot grown since you started?
Curious as to where this 45% figure comes from, it's the same rate of tax that additional rate tax payer pay on earnings over £120k a year.

The one notable tax related to pensions was related to the lifetime pension allowance threshold of circa £1 million, where anything above that is taxed at 55%, but this was being planned to be scrapped (temporarily?) Last year by Jeremy Hunt in an effort to attract economically inactive boomers back to the work force.

When you withdraw your pension, if I understand it right, you can withdraw 25% of it as a lump sum tax free, as for the rest, if you take it all as a lump sum, it counts towards your personal allowance and is taxed based on how much you take, though most would choose to go for an annuity, from a pension calculator I have with one of my work place pensions, an estimated £600k pension pot while retiring at 72 could get me around £4.4k a month as an annuity, which would barely put someone in the 40% higher rate tax bracket, this would be even less if they decided to retire earlier, though inclusion of state pension would push it further into the 40% tax bracket.

With the above, I don't think even a £1 million pension as an annuity would hit the current high rate tax thresholds, if we then consider the above is based on tax thresholds today and not 35 years or so into the future, it seems unlikely that it would be taxed at 45% at all.
Title: Re: Pension Changes
Post by: barafear on 14-02-24, 02:33PM
But how much has your pot grown with investment growth in % terms?
Title: Re: Pension Changes
Post by: NightAndDay on 14-02-24, 11:22PM
I have 5 pots, one is my old mcdonalds pension, it has a negligible amount in it, I have 3 Tesco pensions, the old style pension where you contributed 5% and Tesco contributes 10% I have an old leaflet for that but don't know what happened to it, the current Tesco pension that I put money into as a Shift Leader, that's doing quite well, and is up around 71% of what I put in, (It's worth £9,691.05 and I've invested £5.735.63 into it), my pension at an old firm I joined after leaving Tesco, I put £23k into it and it's currently worth £29.6k and my 3rd Tesco pension as a head of technology currently has £30k in it and is worth £37k.

These are all managed by the pension provider (mainly L&G)

So overall across the pots I know about, it ranges between 23%-71%, but the 71% has been around for several years longer than the other 2.
Title: Re: Pension Changes
Post by: barafear on 15-02-24, 04:54PM
71% growth since end of 2015 (presumably) is significantly more than most on here seem to have achieved.
But only £6k invested - suggests about £750 per year? - on a shift leader wage? doesn't sound right?
I guess you haven't had it since 2015?

As for your latest pension - do you mean contributions of £30k and current value £37k?
But Tesco's contributions to that are far higher than normal B/C grade colleagues.

Do you contribute 10% yourself and Tesco top it up to 25% in total?
Title: Re: Pension Changes
Post by: grim up north on 15-02-24, 06:42PM
Out of interest where do you see these pension pots? Apathy can lead to these things be forgotten about, this thread has made me realise to keep up to date.
Title: Re: Pension Changes
Post by: NightAndDay on 15-02-24, 06:56PM
Tesco ones can be found at https://myaccount.landg.com
Title: Re: Pension Changes
Post by: NightAndDay on 15-02-24, 07:04PM
Quote from: barafear on 15-02-24, 04:54PM71% growth since end of 2015 (presumably) is significantly more than most on here seem to have achieved.
But only £6k invested - suggests about £750 per year? - on a shift leader wage? doesn't sound right?
I guess you haven't had it since 2015?

As for your latest pension - do you mean contributions of £30k and current value £37k?
But Tesco's contributions to that are far higher than normal B/C grade colleagues.

Do you contribute 10% yourself and Tesco top it up to 25% in total?

I mean overall amount, the £30k is mine and Tescos combined contribution and the £7k is the capital gains on the pension amount.

At Head office, the pension schemes are the same as shop floor, 4.9-7.5% matched by the employer, which is good even compared to other office jobs.

I paid inti that pension between 2015-2019, I was a Shift Leader for 1.5 of those years, the rest was as CA, and a lot of it on a part time basis. When I dropped down to Sunday only CA when I got my new job, Shift Leaders were on £9.98 an hour I believe (June 2018) just under £10 an hour.
Title: Re: Pension Changes
Post by: Attilla on 16-02-24, 12:05PM
Strange how you're all saying you e had big %increases in your pensions.  Stock market took an absolute hammering a year or so ago.  My Tesco pension and even my private pensions have hardly grown in the last couple of years and in some cases  lost money
Title: Re: Pension Changes
Post by: barafear on 16-02-24, 12:48PM
Quote from: NightAndDay on 15-02-24, 07:04PM
Quote from: barafear on 15-02-24, 04:54PM71% growth since end of 2015 (presumably) is significantly more than most on here seem to have achieved.
But only £6k invested - suggests about £750 per year? - on a shift leader wage? doesn't sound right?
I guess you haven't had it since 2015?

As for your latest pension - do you mean contributions of £30k and current value £37k?
But Tesco's contributions to that are far higher than normal B/C grade colleagues.

Do you contribute 10% yourself and Tesco top it up to 25% in total?

I mean overall amount, the £30k is mine and Tescos combined contribution and the £7k is the capital gains on the pension amount.

At Head office, the pension schemes are the same as shop floor, 4.9-7.5% matched by the employer, which is good even compared to other office jobs.

I paid inti that pension between 2015-2019, I was a Shift Leader for 1.5 of those years, the rest was as CA, and a lot of it on a part time basis. When I dropped down to Sunday only CA when I got my new job, Shift Leaders were on £9.98 an hour I believe (June 2018) just under £10 an hour.
I assumed your job would be WL1 (or whatever the highest is?) -

Is this an out of date job advert then?

Retirement savings plan – save anything from 6% of your pay and Tesco will pay 1.5 x your contribution up to 15% of your pay

That was for a job as

Enterprise Architect

in the

Technology Dept
Title: Re: Pension Changes
Post by: NightAndDay on 16-02-24, 02:46PM
I think they changed it a few years ago, so it's all aligned, I think I rejoined after they made the changes. A lot of vacancies I seen used to have that as a pension arrangement but It's changed for everyone I think except for those a lot higher up the chain, the vacancies you won't see advertised on the website (or extremely rarely).

It's not surprising really, but even with the pension changes, it's still a good pension.

https://www.tesco-careers.com/jobdetails/841334/ is the same level as I am and shows 4-7.5% aligning with the wider business.