Paying more into pension

Thailand1 · Post by **Thailand1** » 21 Mar 2020, 15:28

Hi Robert

Thanks for reply....The reason I ask this question is because I can see a massive delay in the start of the CDC pension due to the current crisis.

I think the new legislation is the last thing on the governments priority list.

Then if that’s the case your Cash Balance Scheme contributions could build up for a longer period than originally planned.

What are your views?

I think also you should be elected to be one of the pension trustees.

Thanks again.

Post by **RobertT** » 21 Mar 2020, 15:57

I agree about the legislation! Things seemed to be going along quite nicely once the general election was over, and now CDC could be kicked into touch for a while?
Although from an investment point of view, it may not be a bad thing for CDC that the markets have gone down, as it might benefit from the recovery and get it off to a good start.

The Cash Balance scheme is open ended to some degree, but I think RM were hoping to stop that and bring CDC in on 1st April 2021 at the latest. As you say, the longer the Cash Balance scheme is running, the likely we are to pay tax on some of it.

I don't know about being a trustee, but it's nice of you to say so.

Thailand1 · Post by **Thailand1** » 21 Mar 2020, 17:15

Hi Robert again!

Just one more thing if you don’t mind....do you know where the cash balance scheme is being invested or is it just what it says!

Thanks again your knowledge has helped loads of people on this forum.

renrag40 · Post by **renrag40** » 21 Mar 2020, 23:45

The cash balance fund was due to pay its first discretionary increase in September 2020....... what do we think it will be?
My money is on a big fat 0...........

Post by **RobertT** » 22 Mar 2020, 04:26

Thailand1 wrote:Hi Robert again!

Just one more thing if you don’t mind....do you know where the cash balance scheme is being invested or is it just what it says!

Thanks again your knowledge has helped loads of people on this forum.

The annual report and accounts show the type of investments the DBCBS is invested in, but there's no specifics! It's available to view in the library section of the RMPP website.

The discretionary increases are aimed to be 'in excess of CPI' with a 'cap of 4% above CPI'. We shall have to wait and see what, if any increase we get, but the first is due on 31st March 2020.