The 2016 Budget, and unfunded public sector pensions.
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Gin with a splash of gin sounds good.
Think G & T, with a decent IPA replacing the T ...... like the G & T, it can be long or short.
One rather likes the martini-esque idea of diluting alcohol with more - albeit weaker - alcohol!
It's not as bad as it sounds...........
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Posted by Al R:
It's fair to say, more upheaval.
"It is government’s policy is to review the discount rate used to set employer contributions to the unfunded public service pension schemes every 5 years. The discount rate is based on the OBR’s long term projections of GDP growth. Budget 2016 sets out that the recent assessment has resulted in a reduction in the discount rate which will increase the contributions employers pay to the schemes from 2019-20 onward. This will ensure that the costs of providing pension benefits in the future are fairly reflected in the contributions paid by employers, and that the pension promises made today are on a sustainable basis to ensure fairness to future tax payers." "
Just a quick word of reassurance from FPS. The MOD have been doing regular reviews of SCAPE for years. SCAPE - or the Superannuation Charge Adjusted for Previous Experience - is the MOD's contribution to the pension scheme and every proposal which is put forward by way of changes to AFPS or AFCS is always considered in the light of what it would do to SCAPE.
It's fair to say, more upheaval.
"It is government’s policy is to review the discount rate used to set employer contributions to the unfunded public service pension schemes every 5 years. The discount rate is based on the OBR’s long term projections of GDP growth. Budget 2016 sets out that the recent assessment has resulted in a reduction in the discount rate which will increase the contributions employers pay to the schemes from 2019-20 onward. This will ensure that the costs of providing pension benefits in the future are fairly reflected in the contributions paid by employers, and that the pension promises made today are on a sustainable basis to ensure fairness to future tax payers." "
Just a quick word of reassurance from FPS. The MOD have been doing regular reviews of SCAPE for years. SCAPE - or the Superannuation Charge Adjusted for Previous Experience - is the MOD's contribution to the pension scheme and every proposal which is put forward by way of changes to AFPS or AFCS is always considered in the light of what it would do to SCAPE.
Related to the budget - what are currently serving guys (inc FTRS) being told about the Scottish 40% tax bracket?
If, as seems likely, the SNP (future) govt won't implement the new threshold (raised to £45k), will MoD staff based in Scotland follow Scottish tax rules or the UK govt rules? On a pensions note - if you pay into your SIPP, someone in HMRC is going to have to take into account that you've paid more 40% tax if living in Scotland than in England...
If, as seems likely, the SNP (future) govt won't implement the new threshold (raised to £45k), will MoD staff based in Scotland follow Scottish tax rules or the UK govt rules? On a pensions note - if you pay into your SIPP, someone in HMRC is going to have to take into account that you've paid more 40% tax if living in Scotland than in England...
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will MoD staff based in Scotland follow Scottish tax rules or the UK govt rules?
Just been confirmed that SNP plan to only raise 40% threshold to £43,387 (up by £387). Rest of UK move to £45k.
So the question now is - will serving personnel 'based' in Scotland be subject to the Scottish or RUK threshold?
And what will 'based' mean? Living in the mess / MQs / own home, for how long etc. etc.
Maybe a 'Scotland Allowance' to compensate as per the London weighting?
So the question now is - will serving personnel 'based' in Scotland be subject to the Scottish or RUK threshold?
And what will 'based' mean? Living in the mess / MQs / own home, for how long etc. etc.
Maybe a 'Scotland Allowance' to compensate as per the London weighting?
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Broadly, a similar situation to that which will have to be faced by the MoD soon.
http://www.publicfinance.co.uk/news/2016/04/lgps-employers-face-ps1bn-contribution-hike-analysis-finds
http://www.publicfinance.co.uk/news/2016/04/lgps-employers-face-ps1bn-contribution-hike-analysis-finds
