Some sensible responses above and the point about the £1K being consolidated (and therefore pensionable) is spot on - the impact is a greater benefit at the bottom where it's really needed. Nice too that the SFA charges are staying as is - the level of (non-)service being provided by the current set of clowns is bewildering in its levels of incompetence. That said, I am not sure the SLA is much better - it's the same company after all.
A genuine question though, are our pensions really non-contributory or is our pay abated to reflect the benefit?