Chat with other Scottish teachers about the pay and conditions in Scottish schools in the Scotland Pay and Conditions Group.
To those who have opted out, or are considering doing so, be aware that there is talk of Final Salary pension Schemes being closed to new entrants within 6 years (could be sooner).
Apparently, some teachers have been opting out early in their careers for two reasons :
1) to save money when on their lowest pay points;
2) to reduce the impact of the proposed Career Average calculation for pensions. They want promotion and intend to Opt back In when on higher salaries, so that their career average pay will be a higher figure for pension calculation (albeit with fewer years in the pension!).
Don't miss the boat by staying out of the pension too long (or stay in it at all costs). This government could easily decide to close the scheme to new entrants without much notice.
jubileeTo those who have opted out, or are considering doing so, be aware that there is talk of Final Salary pension Schemes being closed to new entrants within 6 years (could be sooner).
The Career Average scheme is supposed to be from 2015. From that time on there will be no Final Salary scheme, new entrant or not. ( Apart from those with 10 years of retirement)
Apparently, some teachers have been opting out early in their careers for two reasons :2) to reduce the impact of the proposed Career Average calculation for pensions. They want promotion and intend to Opt back In when on higher salaries, so that their career average pay will be a higher figure for pension calculation (albeit with fewer years in the pension!).
That's not the way a Career Average Scheme works so a very stupid and ill-informed reason to opt out.
Basically instead of your pension being worked out on your final salary times the number of years service, you earn an amount of pension each year. This pension will then be uprated with inflation and added together with all your years to give your final pension.
http://www.bbc.co.uk/news/business-12698920
So all they will be doing is missing years of their pension.
jem16That's not the way a Career Average Scheme works so a very stupid and ill-informed reason to opt out.Basically instead of your pension being worked out on your final salary times the number of years service, you earn an amount of pension each year. This pension will then be uprated with inflation and added together with all your years to give your final pension.http://www.bbc.co.uk/news/business-12698920So all they will be doing is missing years of their pension.
Exactly. Many people, even teachers, misunderstand anything to do with numbers. Notwithstanding that the Career Average pension will be less generous than the Final Salary one, it's still better than being with a private, invested fund and the pension will still has a direct link with salary.
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