Final Salary and the SWW

Post by **TrueBlueTerrier** » 13 Feb 2018, 12:29

Having been asked at work and being stumped I thought I would ask on here.

The Final Salary Pensions (Pre 2008 changes) what effect does the reduction in the shorter working week have on the pension at the point of payment.

Post by **RobertT** » 13 Feb 2018, 13:12

The final salary pension wasn’t affected when we went from 40 hour weeks to 39, or when it was reduced to 40 from was it 42? hours’ before that. I can’t remember that far back!

So I don’t see any reason why it would be affected this time.

heapsy · Post by **heapsy** » 13 Feb 2018, 13:41

RobertT wrote:The final salary pension wasn’t affected when we went from 40 hour weeks to 39, or when it was reduced to 40 from was it 42? hours’ before that. I can’t remember that far back!

So I don’t see any reason why it would be affected this time.

41.5hrs

Post by **cloherty1976** » 13 Feb 2018, 14:18

RobertT wrote:The final salary pension wasn’t affected when we went from 40 hour weeks to 39, or when it was reduced to 40 from was it 42? hours’ before that. I can’t remember that far back!

So I don’t see any reason why it would be affected this time.

Wasn't it 41hrs 18 mins and prior to that 43 hours

mark.cup · Post by **mark.cup** » 13 Feb 2018, 14:36

41 and a half hours in my original contact

Post by **TrueBlueTerrier** » 13 Feb 2018, 15:06

People are concerned because they think that because of the reduction in hours it will affect the payout because its based on your wages just before retirement. I thought it wouldn't have much of an effect but wanted to make sure.

Post by **RobertT** » 13 Feb 2018, 15:15

Our wages aren't going down, the hours we work are!

Post by **tinkerdil** » 13 Feb 2018, 17:52

With the final salary closing to future accrual next month, does this mean NRA60 pension will be based on what your pensionable pay is for 2017/18?

Post by **RobertT** » 13 Feb 2018, 18:27

tinkerdil wrote:With the final salary closing to future accrual next month, does this mean NRA60 pension will be based on what your pensionable pay is for 2017/18?

The final salary pension closed to future accruals in 2008 and was replaced by the CARE/CSDB scheme!

The last time we were informed on this issue, section B RMPP pre 2008 pensions would still be liked to final salary, but section C would be linked to RPI inflation.
Whether that is still the case with the latest plans, hasn’t been communicated to us yet as far as I know.

I would assume the pay rise, when we get it, would be mirrored in our final pensionable pay for RMPP purposes, despite the fact we’re likely to get it after 1st April?

Post by **tinkerdil** » 13 Feb 2018, 19:39

Many thanks Robert.