david and julie said:
Terrible this pipme, what do you reckon for punishment? would a lump sum and around £29K index linked for life sound appropriate?
Worse it could be 2/3 or £38 k index linked .. to a person with many employable years remaining !!
All these pensions should have a ceiling at the Average pay figure when leaving, anything further could easily be funded from such salary level.
--------------- In the real world.
Index linked annuity at 55 years male
Prudential £3,602.40 gross for each £100,000 invested. At age 51 the income would be considerably less.
Payment of Pension
Ordinarily, officers must complete 25 years pensionable service and have reached the age of 50 to receive a pension. However, pensions are paid to officers under 50 if they have completed 30 years service. The rate of pension ranges from half-pay after 25 years pensionable service to a maximum of two-thirds after 30 years pensionable service. Pensions are calculated on the highest level of pensionable pay of any of the last three years service.
Officers can commute part of their pension to a lump sum payable on retirement. The percentage which they can commute depends on age and length of service. Pensions increase each year in line with the cost of living index. Increases are not payable until the age of 55.
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Constable's Pay
Pay Point (Annual increments from 2 years onwards)
Annual salary with effect from 1st September 2004
£
On commencing service 19,803
On completion of initial training period 22,107
2 23,388
3 24,819
4 25,599
5 26,421
6 27,147
7 27,849
8 28,740
9 29,781
10 30,477
11 31,092
Sergeant's Pay
Pay Point (Entry at 0 or 1 depending on length of service, then annual increments)
Annual salary with effect
from 1st September 2004
£
0 31,092
1 32,157
2 33,237
3 33,948
4 34,944
Inspector's Pay
The pay scale for an Inspector ranges from £39,840 (£41,586 in London) for a newly promoted Inspector to £43,212 (£44,970) for an Inspector with three completed years of service in rank.
Flexible Working Conditions
The normal working week is 40 hours on a shift basis. Shift patterns vary between forces. All ranks below superintendent are entitled to two rest days a week and compensation if required to work over those two days. They are also entitled to leave or compensation in lieu of public holidays.
It is possible to work part-time and flexible hours. For more information on this and on overtime pay and other benefits (including maternity leave, maternity support, adoption leave, career breaks, sick leave and allowances)
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Not three bad !! 2/3 of £36000 = £24,000 requires investment pot of £666,600 to fund at age 55
Or pension accrual of £21503 per annum for 31 years that is £1,790 per month. To put in context an annual salary today, no pension scheme, would require a gross of £29,275 to net £1,790 per month.... just to cover the above pension accrual requirement alone ... Please show me the investment where 11% of £36k (£3690 per annum tot £122k assuming max pay throughout - so would be less actually) would accrue £666k after 31 yrs ..
Phew .. blimey ... beats the private sector