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Pension funds urged to join £30bn infrastructure plan

Community Veteran
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Pension funds urged to join £30bn infrastructure plan

http://www.bbc.co.uk/news/uk-15914145
Chancellor George Osborne plans to attract billions of pounds from British pension funds to boost £30bn worth of infrastructure schemes.
Obviously public-sector and MPs pension funds should be at the head of the queueRoll eyes
16 REPLIES
nadger
Rising Star
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Re: Pension funds urged to join £30bn infrastructure plan

Why does one feel that pension funds won't get involved without government guarantees.
I watched Panorama yesterday evening, about PFI, and the profits being made were through the roof.
Community Veteran
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Registered: 30-07-2007

Re: Pension funds urged to join £30bn infrastructure plan

I heard an interview on Radio 5 Live this morning with one of the top guys responsible for the Local Authority Pension Scheme investment, and he was asked about it (apparently there are billions invested via the scheme - presumably from the millions of past and present local government officers who have been investing anything from 6% to nearly 10% of their salaries over the years)
He wasn't being interviewed about his particulalry but as you'd expect the interviewer took the opportunity to ask, and he said that obviously they have to look to long term investments (up  to 60 years) and if it's a good investment for the fund, then of course they'd consider it..  Wink
I'm genuinely interested journeys - what perecentage of your salary have you been paying into your pension fund and for how long?
(in my case it's been 6% for 25 years followed by 7.2% for a further 6 years)
John
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Re: Pension funds urged to join £30bn infrastructure plan

Quote from: hulls

I'm genuinely interested journeys - what perecentage of your salary have you been paying into your pension fund and for how long?
(in my case it's been 6% for 25 years followed by 7.2% for a further 6 years)
John

The more interesting question is what you will get for your pension contributions and when will you get this.
There is a complete imbalance with what people pay in and how much they get out, even for public service employees, local government employees will get something different from teachers or NHS staff. The main question is why ? As I understand it there are at least 4 groups of public service employees all having different discussions on different aspects of their  pensions which all seem to have a range of varying conditions of service, why ? Is one group more important than the others ? If there was a single discussion group it might make things easier.
Community Veteran
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Re: Pension funds urged to join £30bn infrastructure plan

You see.. here they go again, not learning from the current financial services mistakes, they go on hunting for more pension money.
When does it stop? Pensions are PENSIONS. Not a source of funding for everything else.
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Community Veteran
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Registered: 30-07-2007

Re: Pension funds urged to join £30bn infrastructure plan

@Gleneagles
These things are constantly changing, so who knows, but up until recently, I could retire after 40 years' service as long as I was over 60, between 40 years' service and  age 65, I would continue to make the same contribution, but my pension would not be enhanced.  That has changed now, but I'm not sure exactly what the latest definition is, because it keeps changing.  That said, that was the contract when I started work.  I use the term contract, because that's what it is.  How many contracts are you aware of, where one party to the agreement can unilaterally change it to the detriment of the other?
I've made this offer before - just pay me back the money that's been paid into my pension for the past 32 years (plus of course interest and bonuses for that time), and I'll forego my Local Government pension.
I know a few people who work in other industries, including Ford and the electronics sector (not to mention insurance and finance) - few if any of them pay into their pension schemes, and they have at least as good a pension as I have, and intend to retire around 60. So we're not so different, except that no-one complains about them getting what they contracted for.  Sad

pierre_pierre
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Registered: 30-07-2007

Re: Pension funds urged to join £30bn infrastructure plan

I was lucky in my last at work, I eventually did 43 years for the same company, the Pension scheme  was a final salary one and the firm put in a percentage to the fund, my payment was 5.2% of the base salary, overtime was paid straight.
But those who joined much later than me were on another scheme and not final salary.
Even more lucky, I got a rise in the Nov so my final salary got higher, then was offered early redundancy in December, had to think hard as there is a limit as to how much you can get  - think it was 75% of gross.  I had done a  lot of overtime that year, so the 75% didnt affect me, but the firm was threatening to do away with most of the overtime, that would have taken me below 75% and hence cut my pension.
So I jumped ship and got a years pay instead of notice, and immediate supplementary pension up to 65 when I could take the state pension
Oh the joys of life for me, pity the poor younger workers
Community Veteran
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Re: Pension funds urged to join £30bn infrastructure plan

I Recall chatting to a neighbour some time ago and mentioned that at one time if you worked for the NHS in mental health services you could retire at 55 on a full pension plus a lump sum equal to 18 months pay.
He informed me if I thought that was good then a Police constable could retire after 30 years service on a full pension so if you started at 18 years of age that means you retire at 48.
Before any ex service NHS staff or retired policemen respond to this I must make it clear that all this has now been stopped and I refer to what applied a number of years ago and not the present time.
Even these pensions will never better Fred the shreds pension or the pension of many other bankers.
pierre_pierre
Grafter
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Re: Pension funds urged to join £30bn infrastructure plan

having  step son  Police Sergeant, I can assure you that it was only stopped by the ConDems, until recently he was counting the pay days until he could retire, now he doesnt know how many
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Re: Pension funds urged to join £30bn infrastructure plan

@Gleneagles, you remember correctly:- School friend of mine left school at 16 to become a Police cadet, stayed in the police and was eligible for retirement 46. I remember when I was going through university, he was “police sponsored on full pay” through a “forensics medicine” degree. At 46 he ‘retired’ returned to medical school and studied for another degree in “forensic autopsy”, he’s now over 65 and working as a pathologist.
I think it’s a good idea to be given the opportunity to “career switch” before the age of 50, some careers (like firemen & NHS in mental health services as examples) cannot always work through until 65, better to “state sponsor”  for a further qualification/ degree and allow them to retrain.
"Fred the Shred" reminds me of the quote
Quote
Give a man a gun and he can rob a bank, give a man a bank and he can rob the world.


Community Veteran
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Re: Pension funds urged to join £30bn infrastructure plan

Quote from: pierre_pierre
ConDems

I'm sure you mean Con'em
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pin2011
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Re: Pension funds urged to join £30bn infrastructure plan

Listening to the money man from radio 4 on TV this morning and he has worked out that pensions (state) are being increased by different amounts depending on your current pension(s) income. Those on the bottom state pension rate can expect to get around 5% increase while those on 'modest pensions' (about 2 million pensioners apparently) will only get 2% increase. Still, those in need etc.
jim:quote
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Re: Pension funds urged to join £30bn infrastructure plan

That's  a really difficult one!  The basic pension should be enough for a reasonably frugal person to live on (basically a safety net), but make it too much, and you reduce the incentive for people to save into their own pensions.
Why would I pay hundreds of pounds a month into a pension scheme for 40 years, if the old boy next door didn't pay anything his entire working life, and he gets as much to live off as I do?  The minimum pension for everyone, should be enough to live off.  That means that logically it must go up by inflation every year (since the minimum you need to live goes up by inflation every year).  So 5% sounds about right for this year, but why not for all pensioners?
John
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Re: Pension funds urged to join £30bn infrastructure plan

By way of comparison, amongst other companies, I worked for two financial institutions in the City of London. The second job paid me about 30% more than the first job. Both periods of employment were about five years long. The first job had a "money purchase" pension scheme and the second had a final salary pension. The pension payment from the second job is five times greater than the first job!
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Community Veteran
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Re: Pension funds urged to join £30bn infrastructure plan

How did that compare with the amount that you paid into them?