ian rush Posted December 6, 2005 Share Posted December 6, 2005 The government in all its guises ought to be getting rid of final salary schemes for new entrants. Link to comment Share on other sites More sharing options...
sarahc Posted December 6, 2005 Share Posted December 6, 2005 Ian rush, why? Link to comment Share on other sites More sharing options...
ian rush Posted December 6, 2005 Share Posted December 6, 2005 Because a final salary scheme guarantees to pay out based on a (large) % of whatever you're earning when you reach retirement age, for the rest of your life, rather than taking account of what you've actually contributed to the scheme or has been contributed on your behalf. FSS were originally set up when people lived shorter lives. If you've got a private pension you pay in each month and the amount you get out is determined by the total you pay in over your lifetime, with your life expectancy factored in by actuarial calculations. Link to comment Share on other sites More sharing options...
sarahc Posted December 6, 2005 Share Posted December 6, 2005 You don't think a final salary scheme should be used as an incentivce then? Link to comment Share on other sites More sharing options...
crumlin Posted December 6, 2005 Share Posted December 6, 2005 The Isle of Mam Post has the highest pension fund within Government departments and central Government have been trying to get their hands on it for the past couple of years but have come up against a good battle from the trade union rep from the UK. This was posted up some time ago. Its about time it was checked out to see if the Government have repaid the loans they took out from the DHSS pension fund Link to comment Share on other sites More sharing options...
Gladys Posted December 6, 2005 Share Posted December 6, 2005 I think that a lot of the pension fund crises at the moment have been to do with a change in the accounting rules for the funds. Now, whether that is so that they reflect more accruately the worth or whether it is because the accounting standard has skewed a very positive position to a negative position in the interests of "true and fair view", I don't know. But I do know of a pension fund that was hugely overfunded with a pension holiday for all for years, but a new SSAP (or whatever the term is ) was introduced and that rapidly reduced the surplus. Can't say whether it was real or not, but just a thought! Link to comment Share on other sites More sharing options...
TerryMcCann Posted December 6, 2005 Share Posted December 6, 2005 I think that a lot of the pension fund crises at the moment have been to do with a change in the accounting rules for the funds. Now, whether that is so that they reflect more accruately the worth or whether it is because the accounting standard has skewed a very positive position to a negative position in the interests of "true and fair view", I don't know. But I do know of a pension fund that was hugely overfunded with a pension holiday for all for years, but a new SSAP (or whatever the term is ) was introduced and that rapidly reduced the surplus. Can't say whether it was real or not, but just a thought! FRS 17 it is. The old SSAP focused on payments and receipts and pretty much ignored the assets and liabilities and as a result any defecit. The new standard requires a review at least once a year. Could be the first time the standard has been applied as the adoption date was 1/1/05. Damn shown up my roots as an accountant Link to comment Share on other sites More sharing options...
cheesemonster2005 Posted December 6, 2005 Share Posted December 6, 2005 The Isle of Mam Post has the highest pension fund within Government departments and central Government have been trying to get their hands on it for the past couple of years but have come up against a good battle from the trade union rep from the UK. This was posted up some time ago. Its about time it was checked out to see if the Government have repaid the loans they took out from the DHSS pension fund Thank you Crumlin. This is something we should be prouid of. Posties deserve high pensions. Thank god for trades unions - without them we would have none of the rights we have today. Link to comment Share on other sites More sharing options...
crumlin Posted December 6, 2005 Share Posted December 6, 2005 As long as they dont give the pensions aways as cheap as the post offices, they may have a few quid left Link to comment Share on other sites More sharing options...
ian rush Posted December 7, 2005 Share Posted December 7, 2005 Posties deserve high pensions. Is that compared to delivery drivers or paperboys? Link to comment Share on other sites More sharing options...
manxchatterbox Posted December 8, 2005 Author Share Posted December 8, 2005 I wonder what the IOM post Office Pension scheme is invested in ??? Hasn't one of the big investment houses decided to move out of equities into bonds etc so that it has a more secure income stream to match the payments it needs to make - rather than investing in equities whose values might fall just as and when the fund needs liquidity ?? who are the IOM Post Office pension fund investment managers? are they paid a performance fee or are they on a percentage and just sit back and collect their fees?? Link to comment Share on other sites More sharing options...
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