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Public service pensions

Public service pensions. 22 September 2011. The Government’s proposals. In his speech on 17 th June, the Chief Secretary said:

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Public service pensions

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  1. Public service pensions 22 September 2011

  2. The Government’s proposals • In his speech on 17th June, the Chief Secretary said: • “We are all living longer. That means more years spent in work, as well as in retirement. To keep the best pensions in the country, you will have to contribute more. Those contributions will support your pension, not subsidise the pensions of top earners. So when you do reach retirement age, the pension you receive will be broadly as generous for low and middle income earners, as it is now. At the same time we are protecting the pension that you have earned to date. We are reforming for the future, but we will not touch the pension that you have already earned.”

  3. GAD audited information provided in July

  4. IFS career salary progression - Men Source: Disney, Emmerson and Tetlow - calculations using data from the LFS (1994 to 2006)

  5. IFS career salary progression - Women Source: Disney, Emmerson and Tetlow - calculations using data from the LFS (1994 to 2006)

  6. Comparison with NPA60 schemes • Uses IFS’ real career profiles • Lump sums valued at actuarially fair rate • Career from age 22 to NPA with three year career break starting at age 30 • Replacement rate includes Basic State Pension

  7. Pension benefits received for nurse with accrual in NPA60 and proposed arrangements

  8. Comparison with NPA65 schemes • Uses IFS’ real career profiles • Lump sums valued at actuarially fair rate • Career from age 22 to NPA with three year career break starting at age 30 • Civil Servant is comparison with NUVOS • Replacement rate includes Basic State Pension

  9. Comparison with weighted average of NPA60 and NPA65 schemes

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