Pension question to JLR & BMW MINI workers

[T6 vanman]

Hi all

Obviously in the news your pensions are changing....

Without getting into the politics of your changes ... What I'm asking is what are the actual changes,
Specifically and I'll give a hypothetical 50yr old with 25 years service currently paying for a 1/60 p/year DB scheme

The changes;
Will you acquire 25/60th of your final (best of ??) salary from what you currently have accrued or
Will you acquire 25/60th of your average salary from what you currently have accrued?

Moving forward from the changes and onto the DC scheme.
Is the payment into the DC scheme the same % of wage as what was collected from the DB scheme

Thanks guys for your reply

[T6 vanman]

edc said:

I doubt you will find a genuine JLR or pensions person to answer your question but asking whether the DB and DC schemes will contribute at the same percentage level is almost irrelevant. The whole scheme design and retirement outcome is different.

Thanks
Although I am aware on the differences in schemes & outcomes (Maybe more painfully aware soon...!)and understand that more into a DC then more out... but wondered if the transfer to DC also altered the subscription levy

[T6 vanman]

edc said:

For a DC scheme it's critical as to what the investment strategy is and what level of risk you are prepared to take to get the growth. In a DB scheme none of this really matters as by and large you have no input in it. DB schemes are in many ways easy to work out as they are formula driven. A DC scheme is comparable to purchasing each month a chunk of stocks and shares.

Yes thanks .... understood,
What I'm more interested in is what is the usual procedure for the pension accrued in the DB scheme when it is closed,
Does this still get paid at final salary (for my employer calculation of best 3 averaged) or another calculation??

[T6 vanman]

edc said:

The answer is it depends on the scheme rules and/or what is agreed with the members. There should be a consultation period where all this will be detailed. I doubt JLR are going to make that public themselves.

Yes I know .... These details would have been given to JLR / BMW MINI pension members to review and (I'm guessing consulted through Unite as part of a change in terms and conditions) therefore I was hoping a JLR / BMW MINI pension member on PH would answer my specific question(s),
Both BMW MINI & JLR changes have been widely in the media but I've not seen this specific detail
Hopefully one will see my question over the weekend

[T6 vanman]

edc said:

Are you in the scheme or just a curious bystander?

I refer you to my first answer yesterday 21:31

I may become painfully aware of pension scheme closure/transfer soon so I'm interested in ... how do we say .. 'industry standard outcomes'
HTH