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Cake or Crumbs Frank Harding Pensions Officer Warwickshire County Council 28 November 2013 Warwickshire County Council Warwickshire County Council Pension.

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Presentation on theme: "Cake or Crumbs Frank Harding Pensions Officer Warwickshire County Council 28 November 2013 Warwickshire County Council Warwickshire County Council Pension."— Presentation transcript:

1 Cake or Crumbs Frank Harding Pensions Officer Warwickshire County Council 28 November 2013 Warwickshire County Council Warwickshire County Council Pension Fund Annual Meeting 2013

2 Local Government Earnings Survey 2012/13... Auto enrolment includes... People with significant service – who wish they had joined sooner People approaching retirement – who wonder whether it’s worth joining People who want to delay joining – for another 3 years at least Ingredients Imagine the LGPS CARE scheme for 3 people retiring at Alex starts work on £12,000 and finishes on £15,000 Billie starts work on £12,000 and finishes on £21,000 Chris starts work on £12,000 and finishes on £42,000 Delayed membership of the LGPS affect pensions but... What do the numbers look like ? How do pensions compare with final salaries ? Warwickshire County Council earn below £15,00032% earn between £15,000 and £21,00035% earn between £21,000 and £42,00030% earn over £42,0003%

3 The cake shrinks Pensions converge on the Basic State Pension of £5,740 Alex’s pension could be £19,000 compared to a final salary of £15,000 Billie’s pension could be £21,900 compared to a final salary of £21,000 Chris’s pension could be £32,200 compared to a final salary of £42,000 Warwickshire County Council ( LGPS CARE scheme and constant prices )

4 Chris Final Salary £42,000 Pension %Joining LGPS at Final Salary LGPS63% 45% 15% State14%14%14% Combined77% 59% 29% Billie Final Salary £21,000 Pension %Joining LGPS at Final Salary LGPS77% 50% 16% State27%27%27% Combined104% 77% 43% Alex Final Salary £15,000 Pension %Joining LGPS at Final Salary LGPS88% 54% 16% State38%38%38% Combined126% 92% 54% Joining LGPS at 18 Joining LGPS at 38 Pension £32,200 Pension £24,800 Pension £12,200 Pension £21,900 Pension £16,300 Pension £9,100 Pension £19,000 Pension £13,800 Pension £8,200 Joining LGPS at 58 Some have cherries others have crumbs of comfort Warwickshire County Council

5 Joining LGPS at 18 Joining LGPS at 38 Joining LGPS at 58 You can’t have your cake and eat it Nil £23,800£11,100 £14,600 £13 per week 4.64% after tax 81% £13,300 £11 per week 4.40% after tax 38% £12,000 £10 per week 4.40% after tax None Alex Final Salary £15,000 £29,000 Nil £12,600 £19,700 £17 per week 4.64% after tax 79% £15,800 £14 per week 4.64% after tax 35% £12,000 £10 per week 4.40% after tax None Billie Final Salary £21,000 £49,800£17,300 Nil £37,500 £39 per week 5.44% after tax 74% £24,800 £25 per week 5.20% after tax 26% £12,000 £10 per week 4.40% after tax None Chris Final Salary £42,000 Warwickshire County Council Joining Salary Contributions Missed contributions Joining Salary Contributions Missed contributions Joining Salary Contributions Missed contributions

6 Warwickshire County Council Summary Better sooner than later Better later than never

7 Warwickshire County Council


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