1/ BREAKING: Originally plans for so called "partial retirement" (ability to continue employment, draw 1995 benefits & continue pensioned employment in 2015 scheme) was announced for April 2023(lft)
Now government have scored a *massive* own goal by deferring this to Oct 23(rt)
Now government have scored a *massive* own goal by deferring this to Oct 23(rt)
2/ Why is this important?
In 2022/23 we saw very high inflation (10.1% Sept CPI) coupled with disgraceful subinflation pay cuts (max 4.5%, lower with frozen CEAs). These 6% plus pay cuts led to many working out it #DoesntPayToStay hence our BMA tool👇
bma.org.uk/pay-and-contra…
In 2022/23 we saw very high inflation (10.1% Sept CPI) coupled with disgraceful subinflation pay cuts (max 4.5%, lower with frozen CEAs). These 6% plus pay cuts led to many working out it #DoesntPayToStay hence our BMA tool👇
bma.org.uk/pay-and-contra…
3/ Its looking like 2023/24 will produce similar findings- @bankofengland predicting 2023/4 inflation of 7.9% (left) with @hmtreasury wanting to CAP pay awards at 2% (right) - and lower assuming frozen CEAs, once again in 6% plus pay (and therefore pension) *pay cut* territory
4/ This will once again create ripe conditions for members having to make difficult decisions about staying in employment (& "burning" huge subinflation pay awards into final salary pensions).
*Any* delay to partial retirement, as proposed above, will rightly make members ..
*Any* delay to partial retirement, as proposed above, will rightly make members ..
5/ question their plans and will need to work out if it #DoesntPayToStay
Add in other ridiculous conditions like a 10% reduction in pensionable pay for partial retirement (stupid with 7m+ on waiting list) and threat of abatement if this is exceeded is, frankly, ridiculous.
Add in other ridiculous conditions like a 10% reduction in pensionable pay for partial retirement (stupid with 7m+ on waiting list) and threat of abatement if this is exceeded is, frankly, ridiculous.
6/ This is also confounded by ridiculous & deeply unfair pension taxation policy failing to #FixNegativePIAs. This will mean members will take this huge pension cut, and unless govmnt *properly* #FixTheFinanceAct, members will continue to pay unfair annual allowance charges
7/ despite their final salary pension having gone down in real terms. *Only* a substantive change to S234 of the Finance Act (with carry forward) can change this (not a suboptimal change to scheme regs). This is all in govermnents gift to do
8/ Government need to urgently change plans regarding the timing of thie and/or put in place full mitigation so noone is forced to make these decisions, and take a cut in their pension by simply staying in work.
They must also immediately #FixNegativePIAs
Please share & RT
They must also immediately #FixNegativePIAs
Please share & RT
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