PPRuNe Forums - View Single Post - NATS Pensions (Split from Pay 2009 thread)
Old 22nd October 2008 | 07:40
  #808 (permalink)  
barstewards
 
Joined: Aug 2008
Posts: 26
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From: here
Brummmbrumm said
Contributing at less than the underlying rate for the last 5 years does not change the underlying rate that needs to be paid today.
Are you sure about that??

Imagine you put £100 per month into a savings account. After 1 year the account has £1200 + interest earned.
Instead you decide only to pay in £80 per month. After 10 months there is only £800 +some interest (less than if you had paid the full £100).
For the remaining 2 months of the year you therefore have to pay in over £200 per month - enough to cover the missing capital and interest.

This is where I believe NATS is at - they have paid in less than the underlying rate (not to mention the pension holiday).
That means there is less in the pot than there should be and they now come crying to us wanting our support instead of paying in what they should




NO
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