P.S.E Pension Salary Exchange

[Supersonicvandriver]

Hi all I got a booklet on this today. Saying they will reduce weekly pay but pay more in your pension. but will change our contractual terms and conditions.
What are the new terms and conditions?????
Is it all worth it for a pound a week extra???
Why bother at all, there must be something in it for them.
Got a feeling when its time to get my pension something will go wrong.
What do you all think about it????

[RobertT]

Hi all I got a booklet on this today. Saying they will reduce weekly pay but pay more in your pension. but will change our contractual terms and conditions.
What are the new terms and conditions?????

It just means that RM will be paying your pension contributions instead of you.

Is it all worth it for a pound a week extra???

You’ll be keeping more of your hard earned money for yourself instead of giving it to the taxman. It’s your choice.

Why bother at all, there must be something in it for them.

When contracting out ends in April 2016, both RM and its employees will face a bigger NI bill, this is a way of reducing that bill.

Got a feeling when its time to get my pension something will go wrong.

How?

What do you all think about it????

Its normal name is salary sacrifice and has been around for years. For most people it’s a no brainer.

[TrueBlueTerrier]

soma serious panicking on the FB page, but my take on it is the same as RobertT.

I think we were opted out anyway so it won't have much more of an effect on your state pension than it already has.

[Brainache]

If you make AVC payments the saving is more - I will be about £11 a week better off. Lovely.

[RobertT]

soma serious panicking on the FB page, but my take on it is the same as RobertT.

I think we were opted out anyway so it won't have much more of an effect on your state pension than it already has.

Members of the RMPP have been contracted out of the State Second Pension/SERPS for many years and have ‘enjoyed’ a rebate on the amount of NIC’s we pay, because we were building up pension via our company scheme instead of S2P.

From April 2016 contracting out will come to an end and those NIC’s will increase. In return we will begin to earn more state pension than before. For some people it will be a win win situation because they will benefit from their contracted out RM pension and also have enough time to build up more credits in the ‘new state pension’ which also kicks in next April.

All PSE does is reduce the effects on the extra NIC’s we and RM have to pay.

[TrueBlueTerrier]

only got 17 years to go myself and already have 2 pensions - I non contributory (and already drawing) , so the opting out solution I don't think is the correct one for me, will just increase my private and RM pensions as I need to as the rules change.