June 14th, 2009

Saving for your old age

Posted in The Job - General by 200

I’m quite glad I got out when I did, especially when reading a report in last week’s Police Review.

Entitled “Expensive Police Pensions Unsustainable” it outlines a report from a Richard Lambert, director general of the Confederation of British Industry to the Police Foundation think tank.

Basically, it says that the police pension arrangements are too expensive & should be reformed.

The current arrangements under which I retired are that an officer, on completion of 30 years, is entitled to a pension of 2/3 final salary with the option of exchanging a proportion of that amount for a lump sum (commutation).

The scheme was changed a few years ago and since April 2006 officers joining the force are entitled to a 1/2 final salary pension but must serve 35 years instead of 30, and the final sum is limited to four times the annual pension, though they do pay 9.5% of their income into the scheme instead of what I paid which was 11%.

Mr Lambert notes that such a scheme – the newer one presumably – would be unsustainable in the private sector.

The head of the CBI’s pension policy said “It is absolutely correct that police officers & staff have access to a good pension scheme & the important thing is not to rush to judgement. But the pension scheme as it stands is not sustainable in the long term.

So, if you’re thinking about joining the job, I’d get in a bit sharpish before they decide to remove the pension scheme altogether.

You can skip to the end and leave a comment. Pinging is currently not allowed. RSS 2.0