VTEC pension

[Davidson4301]

Hi all ,
I’m just after a bit of info if anyone can help.

I’m due to start a trainee driving position with VTEC in a few weeks and was wondering if anyone knows who the pension provider is ? Is it a final salary scheme ( hopeful I know ).
I have two pension pots at the minute
9 years military and 9 years in a local government pension scheme (LGPS). Would it be worth transferring both to the new scheme ? I will be earning almost double to my current wage once qualified so not sure it if it’s worth transferring as it won’t but me as many years if that makes sense.

I know the answer is probably going to be speak with the pension providers but any help or advise is appreciated .

Thanks in advance

 

[red2005]

Hi all ,
I’m just after a bit of info if anyone can help.

I’m due to start a trainee driving position with VTEC in a few weeks and was wondering if anyone knows who the pension provider is ? Is it a final salary scheme ( hopeful I know ).
I have two pension pots at the minute
9 years military and 9 years in a local government pension scheme (LGPS). Would it be worth transferring both to the new scheme ? I will be earning almost double to my current wage once qualified so not sure it if it’s worth transferring as it won’t but me as many years if that makes sense.

I know the answer is probably going to be speak with the pension providers but any help or advise is appreciated .

Thanks in advance

I'd be amazed if VTEC are anything other than RPS. Unsure on final salary seeing as you are a new entrant.

Wouldn't worry too much for now you'll have tonnes of advice and information thrown at you on your first week and some of it will be pension related I'm sure.

 

[Tyrion]

Hi all ,
I’m just after a bit of info if anyone can help.

I’m due to start a trainee driving position with VTEC in a few weeks and was wondering if anyone knows who the pension provider is ? Is it a final salary scheme ( hopeful I know ).
I have two pension pots at the minute
9 years military and 9 years in a local government pension scheme (LGPS). Would it be worth transferring both to the new scheme ? I will be earning almost double to my current wage once qualified so not sure it if it’s worth transferring as it won’t but me as many years if that makes sense.

I know the answer is probably going to be speak with the pension providers but any help or advise is appreciated .

Thanks in advance

It is a final salary Pension mate!
If I were you id phone Railways Pension guys as they should be able to tell you about external transfers etc.
Google them for the number ????????????
But for definitive is it worth it transferring advice an IFA would be best bet

 

[falcon]

It's not final salary it is a career average earnings defined benefit scheme run by RPMI.

The company pay into the scheme double the amount you do.

There are also additional voluntary contribution options available which are taken from your pay before tax so as a driver you save 40% tax on those contribution.

 

[falcon]

Also the company does not allow transfers in from other pension schemes.

 

[Davidson4301]

Ah great , thanks for the info .

 

[whoosh]

The company pay into the scheme double the amount you do.

Do you mean one and a half times?
60:40 split employer:employee isn't it?


Finer points aside, the Railway Pension Scheme is one of the best.

 

[falcon]

Do you mean one and a half times?
60:40 split employer:employee isn't it?


Finer points aside, the Railway Pension Scheme is one of the best.

Yes I think that is correct 60:40 split 60 being the employer (company) and the 40 the employee.

 

[Tyrion]

It's not final salary it is a career average earnings defined benefit scheme run by RPMI.

The company pay into the scheme double the amount you do.

There are also additional voluntary contribution options available which are taken from your pay before tax so as a driver you save 40% tax on those contribution.

It is a final salary pension and I have checked with HR and Railway Pensions

 

[sw1ller]

On the point of transferring, I enquiried about this last year when I was still a trainee and it was declined but in the letter it told me to ask again in the future. I’m not VTEC though so could be different rules.

Thanks for this anyway, it’s given me the kick I needed to enquire about it again.

 

[Sirgerbil]

It's final salary mate, can confirm that new starters get it too.

 

[Davidson4301]

It's final salary mate, can confirm that new starters get it too.

Great cheers ? Do you known if it’s possible to transfer ?

 

[westbrom]

From the rps website-
Transferring benefits into the RPS from a non RPS scheme
Important note: only the following sections allow transfers in and restrictions may apply.

Abellio
Anglia Railways
British Transport Police Superannuation Fund
GER
LER (West Anglia)
London Overground
Northern (ex North East) effective from 1 April 2015
Northern (ex North West Sections) effective from 1 April 2015
Southern

 

[stevieoz]

You can’t transfer while on trainee wage ( I tried) as this would buy a lot more years so rps don’t allow it, by the time you can transfer you will know who to contact and have a better understanding. From what I hear you lose around 50 percent of other pension so not worth it although don’t quote me on that.

 

[stevieoz]

You can transfer from other pensions

 

[falcon]

It is a final salary pension and I have checked with HR and Railway Pensions

It's not a final salary pension. A final salary pension means that you will recieve 2/3rds of your final salary after 40yrs including the state pension.

If you work as a driver for 20yrs and then become a driver manager on a higher rate of pay for the last 20yrs you will get 20yrs pension at drivers rate and 20yrs at driver managers rate. You will NOT get 40yrs at the final salary of a drivers manager which is what a final salary scheme was (now scrapped years ago).

It is a defined benefit career average earnings scheme.

So now go back and check with HR again and tell them they are wrong.

Then ring up PRMI and tell them what I have said to you and ask them if it is right and then listen to RPMI tell you that I am correct.

NOT final salary. Career average earnings.

They might call it a final salary scheme but it is not.:roll:

 

[Davidson4301]

Ah right , there’s seems to be conflicting info. Guess I’ll have to wait and see. Thanks for replying gents.

 

[ComUtoR]

If you work as a driver for 20yrs and then become a driver manager on a higher rate of pay for the last 20yrs you will get 20yrs pension at drivers rate and 20yrs at driver managers rate. You will NOT get 40yrs at the final salary of a drivers manager which is what a final salary scheme was (now scrapped years ago).

Do all TOC's offer the same RPS pension ?

On your above example, I would absolutely get 40yrs at the DM salary. I also just spoke to RPS and they confirmed the same. I'm not at Virgin so do they have a different scheme/section ?

 

[falcon]

Do all TOC's offer the same RPS pension ?

On your above example, I would absolutely get 40yrs at the DM salary. I also just spoke to RPS and they confirmed the same. I'm not at Virgin so do they have a different scheme/section ?

I don't know but I would get that in writting. I would like to see it.

The reason being that nearly all TOC pensions were and are in deficit since 2010.

The 'final salary' scheme that operated under BR was in suprlus by at 135% so it was possible to promot people in ther last year onto a higher salary so they got a pension based on the higher rate when they had only paid 39yrs at the lower rate. But in truth that was a fiddle because those who did not get promotion in the last years were subsidising those who engaged in this common scam. But it was government money then

When the pension schemes had to by Law (Mr Thatcher insisted) reduce their surplus the companies had a pensions holiday making no contributions(5yrs in the case of the VTEC scheme) and the members enjoyed reduced contributions.

Then when it all went wrong nearly all pension schemes in the privatised railway were in serious deficit.

I find it very difficult to give credence to any suggestion that any pension scheme allows one member to pay 39yrs of contributions of say £25 a month plus the contribution of the company at that rate. And then allow that same person to be promoted for 1 yrs and pay contributions of £50 for 1 year yet recieve a pension calculated as though the person had paid £50 for 40yrs. The pension scheme would collapse.

As I say ask for it in writting. Specifically ask "if I made contributions into the pension scheme as a driver for 39yrs and then I got promoted to a drivers manager on a higher salary for my last year and paid 1 yrs of drivers managers contributions would I receive a pension calculated as though I had paid 40yrs of driver managers contributions"? Sorry.

 

[ComUtoR]

I don't know but I would get that in writting. I would like to see it.

I have it in writing. Its final salary with the calculations provided in the pack I get each year.

The reason being that nearly all TOC pensions were and are in deficit since 2010.

Ours is 105% at the last valuation. It was 117% at one point.

I find it very difficult to give credence to any suggestion that any pension scheme allows one member to pay 39yrs of contributions of say £25 a month plus the contribution of the company at that rate. And then allow that same person to be promoted for 1 yrs and pay contributions of £50 for 1 year yet recieve a pension calculated as though the person had paid £50 for 40yrs. The pension scheme would collapse.

This isn't about whether or not you give credence to it. It is about whether or not the Pension scheme is or is not a Final Salary. I can confirm for a fact that my TOC is 100% a final salary scheme and there is no CARE calculations whatsoever. If that was the case my contributions and my annual estimate would be showing these calculations, which they aren't.

I did a little forum search and I believe that you were told about this before when you stated, that a pension scheme was CARE and not final salary. There is also another forum post where a new VTEC employee has stated that the benefits include a 'Final Salary pension'

As I say ask for it in writting. Specifically ask "if I made contributions into the pension scheme as a driver for 39yrs and then I got promoted to a drivers manager on a higher salary for my last year and paid 1 yrs of drivers managers contributions would I receive a pension calculated as though I had paid 40yrs of driver managers contributions"? Sorry.

This has been done more than a few times at my TOC. Drivers would regularly take a Higher Grade position for their last few years employment. When you join the pension scheme you will be given a welcome pack and all the details are given to you about how your contributions are calculated and all the technical bits about pensionable pay etc.

Are you a Virgin employee or a TOC employee with a TOC pension ?

 

[greatkingrat]

The scheme changed from 1st April 2016. I don't believe the statements for 2016/17 have been sent out yet so any paperwork you have will be based on the old rules. Even then you won't necessarily notice any change immediately if you haven't changed roles since 2016.

The new rules aren't a simple Career Average, instead RPMI are using their own hideously complicated method of Pensionable Restructuring Premiums that no-one fully understands, but it certainly isn't a simple Final Salary scheme anymore either.

 

[falcon]

Please state the pension scheme you are in and produce the written document for viewing here.
That will clear the issue up.

 

[falcon]

For clarifiction agian.

The VTEC pension scheme is a career avarage earnings scheme and NO transfers in allowed.