Pension question

H

holluvsboro

Member
can anyone advise please: when an employer pays a percentage (say 18%) and the employee pays a percentage (say 8 percent) do all these contributions go into the employees pension pot?
 
holluvsboro said:
Thank you
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Hold on a minute. It depends upon the type of scheme.

If a money purchase scheme (or defined contribution scheme) then yes every member has their own pot, which is used to provide the member with benefits.

If you are in a defined benefit scheme (not many left but some still out there) then all contributions from members and employers are put into one big pension fund to provide all members with benefits. No earmarking of pots/funds to individual members.
 
Massimo's Header said:
Hold on a minute. It depends upon the type of scheme.

If a money purchase scheme (or defined contribution scheme) then yes every member has their own pot, which is used to provide the member with benefits.

If you are in a defined benefit scheme (not many left but some still out there) then all contributions from members and employers are put into one big pension fund to provide all members with benefits. No earmarking of pots/funds to individual members.
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Pretty sure he won't be joining a DB scheme. Dead as a dodo as far as new members go. Ah! Neo-liberalism!
 
Massimo's Header said:
Hold on a minute. It depends upon the type of scheme.

If a money purchase scheme (or defined contribution scheme) then yes every member has their own pot, which is used to provide the member with benefits.

If you are in a defined benefit scheme (not many left but some still out there) then all contributions from members and employers are put into one big pension fund to provide all members with benefits. No earmarking of pots/funds to individual members.
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So are you are saying if it is a defined benefits scheme the answer is no?
 
Would it be worth one's while transferring a previous small private pension across to a NHS pension to have it all on the same pot?

Apologies for stealing your thread!
 
Massimo's Header said:
Hold on a minute. It depends upon the type of scheme.

If a money purchase scheme (or defined contribution scheme) then yes every member has their own pot, which is used to provide the member with benefits.

If you are in a defined benefit scheme (not many left but some still out there) then all contributions from members and employers are put into one big pension fund to provide all members with benefits. No earmarking of pots/funds to individual members.
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Maybe not a defined individual pot as such, but the amount paid in on your behalf is known, and as such your entitlement regarding years worked ina DB scheme.. Then should you wish to take this out and transfer into a personal pension funds your pot / value of liability to the current pension fund will be calculated to provide the CETV.
Typically in a DB scheme your statement will show No of years service accrued rather than a pot value, but will show an illustration of what benifit you will get at retirement.
 
Artie Fufkin said:
It's been offered to me, but I think the private pension has to be 'bought' and so devalues it so I need to explore further. We'll be getting together with our IFA once allowed, don't like discussing these things with him if it's not face to face
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Think in the old days these were classed as superannuation payments, i had a relative who topped up NHS this way.
 
Happy with my pensions, If all goes well, health wise, I will be retiring 2 years this week, same place & a total of 37 years to the day

Start & finish on the same date, 37 years later 👍
 
Erimus74 said:
Happy with my pensions, If all goes well, health wise, I will be retiring 2 years this week, same place & a total of 37 years to the day

Start & finish on the same date, 37 years later 👍
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That's incredibly rare these days.
Half the outfits I've worked for no longer exist 🥺.
 
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