But incoming Chancellor George Osborne announced in June 2010 that civil service pensions would in future increase each year in line with the Consumer Prices Index (CPI) not RPI) This immediately reduced the value of all scheme benefits - including those benefits already accrued from past contributions - by around 15%. The Government has also moved pre-July 2007 members to a new career average scheme from 2012 - but for future accruals only, and only for those more than 10 years from Normal Retirement Age.Īnother generous element was the annual uprating by reference to the Retail Prices Index (RPI).
From that date, new entrants joined a career average scheme - see below for an explanation of what this means. But the old final salary pension scheme was closed to new entrants from July 2007. So those who who had been promoted several times, particularly late in their career, gained substantial benefits from this rule. One particularly generous element - for a minority of staff, and usually the more senior staff - was that pensions used to be calculated by reference to final salary. But the vast majority of civil servants are not particularly well paid and they retire with pensions that are also far from generous. As a result, those few civil servants who earn generous salaries do retire with equally generous pensions. Key FactsĬivil service pensions were once thought to be very generous, but the civil service pension scheme is now broadly similar to the better private sector schemes. Possible sources of advice are listed in Note 4 below.
Please note that I cannot answer questions about individual pension entitlements. This web page contains general information about civil service pensions.
0 kommentar(er)
