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DB Schemes - what is Webb intending to weave?
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Trustim
Posted: 19 January 2012 09:41:41(UTC)
#1

Joined: 18/08/2010(UTC)
Posts: 10
What is the Pensions Minister considering now? Removing indexation from DB Schemes with the hope of reinvigorating them. Where does that come from?

He didn't want to intervene when companies followed the public line and downgraded RPI to CPI, he left it to individual schemes to examine their Deeds, perhaps he should legislate that indexation is removed from all schemes - and then justify it. In the DB scenario it will just keep existing schemes open a little longer until they eventually die.

Then as the Dodo it will be extinct and will not come back to life.

Reiverating DB Schemes - I think not! With no FTSE100 now offering a Final Salary Scheme and no CEO brave enough to start one - how is he going to weave that?
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Michael Stevens
Posted: 19 January 2012 16:52:05(UTC)
#2

Joined: 19/12/2011(UTC)
Posts: 4
D B schemes should be closed to new members, these being offered a Money Contrbution scheme.
Contributions on 50/50% upto 10% of basic salary Minimum cotribution 5% each.
The employee can pay more to increase the benifits if so desired.It is under the control of the member.
The present D B scheme changed to career average earnings, retirement age State Pension Age.
Accrual rate 1/65
Joining Age 22
Prospective Pension 45/65= 69%
What a Very Fair scheme.
Michael Stevens
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