Pension salary exchnage opt-out

[datasaint]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

A bit wary too and have opted out myself. Will have to wait until you retire to really no the answer. This is due to start in August but surely this PSE will be abolished in JULY'S budget...

Presumably you can opt back into PSE later on?

[fishtank]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

A bit wary too and have opted out myself. Will have to wait until you retire to really no the answer. This is due to start in August but surely this PSE will be abolished in JULY'S budget...

L
I suspect since there will be start up costs involved and the government is still a major shareholder the medium term future of PSE has been assured.

[RobertT]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

I can understand people being a bit suspicious, we do work for RM after all. But it clearly says that the change in terms only relates to the fact that RM will be paying your pension contributions instead of you, which is fairly standard for a salary sacrifice scheme.

[RobertT]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

A bit wary too and have opted out myself. Will have to wait until you retire to really no the answer.

The reason RM are introducing PSE has more to do with their NIC’s increasing next April which will put more pressure on their finances in general, and one thing that may be affected in due course is the current career average salary pension scheme and it’s affordability. So mass opting out won’t help that at all.

When contracting out of the State Second Pension stops in April and NIC’s go up, members of the RMPP will build up more state pension than before. So paying the extra NIC’s is a good thing, PSE just reduces the extra we have to pay for the same benefit.

This is due to start in August but surely this PSE will be abolished in JULY'S budget...

The government allow lots of ways to save a little bit of tax here and there, salary sacrifice has been around for around 15 years and is just one of them. The annual bill for tax relief on pension payments for example, is far higher and is much more likely to get hit(particularly for 40% taxpayers) than salary sacrifice. There are also bigger fish on the governments radar such as tax credits and housing benefit, so personally I don’t think there’s much chance of them wanting to prevent normal working people from saving themselves a pound or two a week.

[RobertT]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

A bit wary too and have opted out myself. Will have to wait until you retire to really no the answer. This is due to start in August but surely this PSE will be abolished in JULY'S budget...

Presumably you can opt back into PSE later on?

From page 20 of brochure:

You can opt out of PSE once a year during a specific period, however you can opt back in at any time.

[Surreypostie]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

A bit wary too and have opted out myself. Will have to wait until you retire to really no the answer. This is due to start in August but surely this PSE will be abolished in JULY'S budget...

Presumably you can opt back into PSE later on?

From page 20 of brochure:

You can opt out of PSE once a year during a specific period, however you can opt back in at any time.

That is why I have chosen to opt out. I am always wary of things that seem too good to be true. This scheme seems fine, everyone is saying you are a mug, you take home more money etc. I have seen a couple of links posted on here which show disadvantages. I will watch and see what happens when it starts up. I can always stop being a mug and opt in, If you allow yourself to be opted in you have to wait a year before you can get out again.

[OnAFlyer]

Hmm on page 18 it does refer to a change in your terms and conditions which i am a bit wary about. Other than that it seems a good idea. What do you all think about what is said on that page?.

A bit wary too and have opted out myself. Will have to wait until you retire to really no the answer. This is due to start in August but surely this PSE will be abolished in JULY'S budget...

Presumably you can opt back into PSE later on?

From page 20 of brochure:

You can opt out of PSE once a year during a specific period, however you can opt back in at any time.

That is why I have chosen to opt out. I am always wary of things that seem too good to be true. This scheme seems fine, everyone is saying you are a mug, you take home more money etc. I have seen a couple of links posted on here which show disadvantages. I will watch and see what happens when it starts up. I can always stop being a mug and opt in, If you allow yourself to be opted in you have to wait a year before you can get out again.

How can £2 per week be 'too good to be true'? It's a tiny amount of saving.

[Surreypostie]

Any amount of extra cash in your pocket has to be a good thing surely?

The amount of savings for RM must be enormous. Any company would be silly not to want to take part in this. I am sure they are hoping everyone joins. If we are saving £2 a week then their savings must be far in excess of 1/4 million pounds a week in NI payments.

It's a no brainer really for them.

I will probably opt in eventually, I am not keen on the idea of being opted into anything. I will see what happens over the coming months before I worry about the small saving in NI.

[OnAFlyer]

Any amount of extra cash in your pocket has to be a good thing surely?

The amount of savings for RM must be enormous. Any company would be silly not to want to take part in this. I am sure they are hoping everyone joins. If we are saving £2 a week then their savings must be far in excess of 1/4 million pounds a week in NI payments.

It's a no brainer really for them.

I will probably opt in eventually, I am not keen on the idea of being opted into anything. I will see what happens over the coming months before I worry about the small saving in NI.

You could say the same about the employees...

[on_the_way_OUT]

By staying in you will receive around £3 per week extra in your take home pay. The only difference is your pension comes out of your wages before stoppages, hence you save the national insurance you normally pay on it.

There is absolutely no benefit whatsoever to opting out, all you are doing is throwing away £150 per year.

Its basically a Tax fiddle that if a banker was doing everyone inc. the Union would be up in arms about. The Govt. will lose millions in Tax revenue that won't now go to schools the NHS and other vital public services.

Would the Union or any person of a lefty persuasion care to comment?

[aiden01]

By staying in you will receive around £3 per week extra in your take home pay. The only difference is your pension comes out of your wages before stoppages, hence you save the national insurance you normally pay on it.

There is absolutely no benefit whatsoever to opting out, all you are doing is throwing away £150 per year.

Its basically a Tax fiddle that if a banker was doing everyone inc. the Union would be up in arms about. The Govt. will lose millions in Tax revenue that won't now go to schools the NHS and other vital public services.

Would the Union or any person of a lefty persuasion care to comment?

can you tell everyone how you came to this conclusion I will happily take the extra £150 a year . are all these services not being cut severly every year by this bunch of fools who call themselves the govt.

[RobertT]

By staying in you will receive around £3 per week extra in your take home pay. The only difference is your pension comes out of your wages before stoppages, hence you save the national insurance you normally pay on it.

There is absolutely no benefit whatsoever to opting out, all you are doing is throwing away £150 per year.

Its basically a Tax fiddle that if a banker was doing everyone inc. the Union would be up in arms about. The Govt. will lose millions in Tax revenue that won't now go to schools the NHS and other vital public services.

Would the Union or any person of a lefty persuasion care to comment?

It’s a government sponsored scheme, they even have a webpage telling you all about it: https://www.gov.uk/salary-sacrifice-and ... ts-on-paye" onclick="window.open(this.href);return false;

And the union are recommending it and have even made a video explaining it: http://www.cwu.org/cwu-tv.html?category ... 0_6fhy5fpi#" onclick="window.open(this.href);return false;

[cloherty1976]

Got my reply from wages saying I have opted out and won't be making any savings. So I suppose I better look at as putting a little extra into the national health service that we all love and use!

[TrueBlueTerrier]

As a "leftie" I have opted in.

Even if we voluntary pay our extra NI, as you do through this scheme, it's not going to change the NHS Budget 1 iota. Not if everyone did it or no one did it.

The government have already set a budget for the NHS and paying more or less through Opting out will not change that budget, all it will do is help pay off the "deficit". Now if you are anti austerity and believe that the Deficit is a political tool not a financial state then why would you want to help the Tories sell their deficit propaganda. The biggest problem is not the deficit, because learned economists say a high deficit and low debt is better than the reverse. The Tories have halved the deficit but doubled the debt to over a trillion pounds, the mess they are trying to avoid is just getting bigger and bigger. The ordinary people need more than austerity to get the economy going again, and the only way for that to happen is for people to have more disposable income.

[cloherty1976]

As a "leftie" I have opted in.

Even if we voluntary pay our extra NI, as you do through this scheme, it's not going to change the NHS Budget 1 iota. Not if everyone did it or no one did it.

The government have already set a budget for the NHS and paying more or less through Opting out will not change that budget, all it will do is help pay off the "deficit". Now if you are anti austerity and believe that the Deficit is a political tool not a financial state then why would you want to help the Tories sell their deficit propaganda. The biggest problem is not the deficit, because learned economists say a high deficit and low debt is better than the reverse. The Tories have halved the deficit but doubled the debt to over a trillion pounds, the mess they are trying to avoid is just getting bigger and bigger. The ordinary people need more than austerity to get the economy going again, and the only way for that to happen is for people to have more disposable income.

At least I am doing some good knocking down the deficit and maybe my kids won't have so much debt when they grow up.