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New higher pension contribs for employers from Sept 2019

Discussion in 'Retirement' started by richest1, Aug 16, 2019.

  1. richest1

    richest1 Occasional commenter

    Scheme Valuation
    Every four years, the Government Actuary’s Department (GAD) carries out a revaluation exercise which covers all unfunded public service pension schemes.

    15/08/2019 | General News

    Full info on the pension website
     
  2. sci

    sci New commenter

    This explains why over 60 independent schools have started-or left- the TPS. State schools cannot opt out.
     
    richest1 likes this.
  3. Dorsetdreams

    Dorsetdreams Occasional commenter

    The reduction of benefits accompanying the transition to CARE was justified by our ever increasing life expectancy. Yet life expectancy has, it appears, peaked and is now declining. There's something fishy going on here.
     
    tall tales likes this.
  4. Rott Weiler

    Rott Weiler Star commenter Forum guide


    Actuaries look at trends over a longer a time scale than 2 years or so, they are projecting forwards 40 years or more, but if the decline in life expectancy continues you'd expect it to be reflected in lower pension contribution rates in due course. And it's not the case that LE has "peaked" and will decline for in future, not according to the article anyway - "In July 2017, Public Health England reviewed possible causes, including population changes and influenza, but concluded there was not enough evidence to show a change in trends." I don't think there is anything fishy there at the moment.
     
  5. Dorsetdreams

    Dorsetdreams Occasional commenter

    Rott Weiler, you are quite right. The data I was incorrectly recalling was that, in 2016, the ONS reduced their life expectancy projection by one year from their 2014 projection, reflecting the observed slowing down or levelling off of the previous increases.
     
  6. PeterQuint

    PeterQuint Lead commenter

    I’ve just read that blog in detail, and looked at the figures.

    It’s clear that, based on what we know now, there is also no evidence whatsoever, for a continued and permanent rise in LE.

    Between 2010 and 2016 there was hardly any change, and evidence from elsewhere suggests it wasn’t just in the UK.

    The argument that ‘it was just old people dying from the flu’ only holds water when we can stop as many old people dying from the flu.

    Let me know when this happens.

    In addition, do we not remember the cancelling of pension costing earlier this year? The figures showed government projections were wrong about continued increases to LE, and pensions for us were going to have to improve (either contributions down or accumulation up).

    We’re the government’s actuarial department wrong?

    I think not.

    And finally, please remember that the baby boom effect starts to reverse after 2027, as the birth rate post-65, which had been on the up for 20 years, started to go backwards.
     

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