Doctor's Pension

[pipme]

Quote
[i]Primrose Shipman, the widow of Britain's most prolific mass murderer, is to receive an immediate pension of £18,000 a year and a lump sum of more than £100,000 after her husband's suicide[/i]

We are given to believe that GP's are underpaid.
If the above quote is true, then I suggest that the widow must be receiving far less than than her husband's actual earned pension, Which I believe after 40 yrs would be a max of 40/80ths plus 2.5 times the annual pension as tax free lump sum ... but he was not 60 when he died, so could not have 40 yrs service unless he paid extra years ?
Blimey, that must have been some pension !!!!
We are funding this sort of pension... How ?

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[TexMex]

I used to work in the NHS. I believe their pension is based on x*60ths (not 80ths) of the final salary. (x being the number of years contribution paid). So if he started paying into it at the age of, say 25, and he was 55 (just a wild guess). that would be 30/60 ie a half. I cant remember how the lump sum is calculated.

 

[david and julie]

No it's definately x80. My wife tells me she as been there 22 years so is entitled to 22x80ths on retirement. If she died prematurely I would get half this ammount but earlier. The lump sum is more though, presumably they pay a term insurance for this.

I know it really upsets people but it is not her fault what her husband did. They can't change the pension rules because of his crimes. I am curious about the suicide aspect though.

 

[TexMex]

Depends on your level of contribution. If you opt for the 60ths, as I did, your contribution is higher. If you decide, retrospectively, I think (not sure) you can still go for 60ths instead, but pay the back dues. You can definately buy back lost years. (if you start later in life), but this is expensive, and can only be done for a limited number of years.

 

[AdamW]

Was awfully nice of him to wait until after his wife would be eligible for the £100K before topping himself Didn't he do it the day after?

As David says, you can't penalise her for H Shipman's crimes. In fact, if you took away the pension etc. then she would be forced to make money through story-selling and some kind of morbid horror-tourism where she would show people around the house where the mass-murderer doctor lived...

I'm paying into a pension fund, but as I am a young'un I have no idea how the system works. However, I do know that with mine there are different levels you can pay. So, the amount of pension you get would vary depending on which level you went for (hence the 60ths and 80ths)

 

[kendor]

Probably the insurance side of the pension paid up the 40 years?

 

[pipme]

Adam ... A real piece of advice ! Get into the pension scheme at the highest level you can reasonably afford ... Then regularly review it !!
The early years pile up the dosh .... I'll get kicked for this, but I would place the pension at the top of my must have list ... It'll be too late, later on ... buying back years, even under, for example, NHS rules will be expensive. Misjudgements today can mean thousands at retirement !! As always doing nothing should NOT be an option, for any reasonably intelligent person !
Good idea to take on a little project, get all pension details .. learn how to calculate pension payable ... have this verified by the pension management team, it is easy to misinterpret rules, do not take anything for granted .... then have fun with the calcs !
I missed at least one good deal, through complacency, back in the 80's several colleagues swarmed into AVC's just prior to the Govn blocking newly signed up AVC retirement 'pots' being taken as lump sums.
One of the guys, a recent retiree 2003, was offered a gross AVC pension at age 60, which would have taken 20 yrs to pay back his actual contributions, even longer after tax !! .. a load of rubbish .. So being one of the 'swarmers' he took £20k lump sum instead ...
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NHS
80th's is the norm, today ... With no gain after 40 yrs contributions. 2.5 x actual gross pension payable is the Lump sum.
Official NHS Pension Calculator
Just noticed, at foot of calculator page, does not include, specifically, GP's ... So I reckon their scheme is BETTER !! than an already good 'un .... Which is why I brought the topic up in the first place.

As things stand, nightshift premia is pensionable .. (about to change I believe) .. Good old ploy was to get on permanent nights for final year of work ... best of final 3 years used for pension calcs .. 30% hike in pensionable pay !!!

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[pipme]

NHS Locum Pension
There we go .. after a little 'dynamising' £30 (well below GP pay) produces £16.8 k gross annual pension + £50.4 k lump sum ... so 3 times pension payable as lump sum !! A nurse needs salary of £33.6k to produce the same pension income, but gets £42k lump sum !!

Of course further details are on the BMA site ... not available to thee and I ..... Therefore there are things which they feel, 'we' the 'funders' even when not customers ... ought not to see .... I wonder why ?
Of course ! Members of the BMA have more right to privacy than mere Nurses or NHS ancillaries ......
Will say it again, the most discriminatory country in the world !! That is why we make such a fuss over discrimination ... guilty conscience !!

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[TexMex]

According to page 65 (labelled as page 61) of This document Medical and Dental practitioners (that covers GPs) get 1.4% of the total carear earnings as a yearly salary. Due to inflation, I havn't a clue how good that is.

 

[pipme]

Quote from NHS Locum Pension :-
Example:
Annual pensionable income = £30,000 (after dynamising - see above)
Years in NHS Scheme = 40
40 x £30,000 = £1,200,000
£1,200,000 x 1.4% = £16,800
Pension = £16,800
Lump Sum = £50,400

The £30k would probably be not less than £50k hence £28,000 annual pension plus £84,000 lump sum. ....
Actual paid in at 6% = £120,000 but this money if not paid in, tax free to pension scheme, would amount to 60% of £120,000 = £72,000
So £72,000 = £150 per month for 480 mnths or 40 yrs
Save that at 3% ... remembering the devaluation of non Govn backed schemes .... amounts to £137,578 .. I ask again, how can this paltry amount fund 28k per annum and £84k lump sum plus widows benefits and insurance etc etc. They have what is commonly known around these parts as 'A job in Bristol !!'

This folks, is probably why maths isn't taught too well today, powers that be would never be able to answer the questions we might pose, if we had half an idea of how our taxes are being used to pay those who have commanded high salaries ... a very easy retirement, with no fears over stock market performance ...

Surely all public service pensions should be capped at say £25k ? I mean when the average earned pay is circa £23k ...
Extras above and beyond could and should be funded from salary ...
Still giving a large amount !! £138k at say 5% returns £6.9k !!
Better install another 30 M speed cameras to help pay for it all ... What a total utter joke !!!
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