State Pension Deduction.

I think this is very unusual pension scheme, is it a public secotr one? I don't think there is usually any link between an employer's pension scheme and the state one.

OH's occupational pension has not been affected in that way (although of course when he became entitled to the state pension as well, he had to pay more tax!).

Is your state pension about £6500? £1300 would be the tax on that amount and would be deducted from the employer's pension. Do you think this is what is happening rather than an actual reduction in pension?

Thaat doesn't explain why PENMANA has been advised that his colleagues' pensions will also drop by that amount when they reach 65, even though they won't be receiving the state pension. Seems a bit odd...

I have looked at my pension letter and I am paid two thirds of my final salary at 60.
When I get to 65 it is two thirds of my final salary plus inflation less £1,300 state pension deduction.
My friend who works for a major bank has said his scheme is similar so I am sure this must apply to other schemes.
Overall I think the pension scheme is very good but it was set up with a 65 state pension age in mind.
This reduction will really affect people in a few years time when the state pension age goes up to 66.
I do not think it will be a problem to employees if they are warned about it now and if state pensions go up to £140 per week people should gain overall but will lose money for 1 year.
In my case after 65 I will get two thirds of my final salary plus CPI increases less £1,300 plus the state pension.

PENMANA have they actually explained to you what/why this £1300 will be deducted? It seems very odd that no one seems to know anything about it. I retired early (though through ill-health) with a Final Salary Occupational Pension but have not had this deduction from my pension since my State Pension kicked in..

Penmana That is a very generous pension, must be public sector. I think there will be many GNs who would love to be in your situation.

My public sector pension is just over a quarter of my final salary, but that's what you get for only putting 25 years in and having stayed at home before that to study and look after the children pre-school (don't get me started on inequality again!)

whenim64 I feel similar to you my public sector pension is barely a quarter of my final salary after 20yrs like you I was a stay at home mum for many years. It doesn't seem fair I agree.

when & tanith if you were a stay at home now you would get credits for your caring time and would only need 30 years of NICs to get a full state pension against the 39 I needed and maybe you did too. If you had worked longer what percentage would you have got?

I have a copy of the NHS pension scheme and it is so much better than anything the private sector offers.

It is a private sector pension and probably one of the best overall.
I just feel people should be warned about the one year shortfall so they can prepare and I think it is odd this is not being published by my pension scheme.
With regard to public sector pensions I know they pay a lump sum.
I got redundancy but no lump sum from my pension.

Alison, I got all my state pension because I bought some years I needed and had a couple from ex-husband's contributions for the years I was still short because I was at home. In order to get 1/2 my final salary I would have needed to work 40 years in the same scheme. I bought AVCs in the last few years, paying out 15% of my salary, and I used those funds to pay off my mortgage. Male colleagues whose years of work were not reduced by having children finished at the same age as me with a much higher pension and not having needed to pay extra contributions.

I know female colleagues used to moan in the same way at the company I worked for.
Their pension contributions were maintained when they were on maternity leave but some left and came back after 5 years for example so they did less years.
Unfortunately my wife passed away and I will get some of her pension soon. I think some of my colleagues who are divorced do not think it is right but that is the way the scheme worked and I think this happens in a lot of pension schemes.
My wife paid in some AVC'S to make up for missed years.
I would however like to have my wife back as well as the money.

I think I must be in a a similar position to when apart from the fact that I omitted to buy the few years of contributions I needed for a full state pension. I went back to teaching at the age of 37 and retired at 62 and what a difference it made not having a "full" teaching career to base my pension on! Does anybody remember a pension advertisement that used to run in newspapers years and years ago where rather like the Fry's 5 boys, there were 5 drawings of a man's face with a different expression ranging from (unconcerned)and saying "They say the job is not pensionable" through concern to frantic at age 65 saying "I don't know how I am gong to manage without a pension" If we had known then what we know now...............

I'm in a similar situation too, but I got a full state pension because I paid 'full stamp' for all but four years when I wasn't in any form of paid work. It was paid by the then Ministry of Overseas Development while I was in Kenya and my ex paid the married contributions during our marriage which meant that I got my share when I retired. When I worked part-time in FE, it wasn't superannuable, so I don't have a full teacher's pension. I managed AVCs for a few years which give me a small annuity in addition to my pensions.