old man Posted March 15, 2017 Report Share Posted March 15, 2017 Is the BMW threat to end final salary pensions despite record 6 billion profits provocation to promote industrial unrest prior to Brexit? Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted March 15, 2017 Report Share Posted March 15, 2017 Possibly, it does seem a little short sighted. Quote Link to comment Share on other sites More sharing options...
scobydog Posted March 15, 2017 Report Share Posted March 15, 2017 Stop buying bmws , we are one of there largest markets, if we stopped buying them they would soon back track on this. S Quote Link to comment Share on other sites More sharing options...
Dave-G Posted March 15, 2017 Report Share Posted March 15, 2017 I don't see the problem if it brings the cost down. There are plenty of people who don't get final salary pensions but fair play to those who can get that in private industry. Quote Link to comment Share on other sites More sharing options...
ph5172 Posted March 15, 2017 Report Share Posted March 15, 2017 I don't see the problem if it brings the cost down. There are plenty of people who don't get final salary pensions but fair play to those who can get that in private industry. I was about to say i thought a final salary pension was a thing of the past. For the lads on the shop floor i doubt it would have a massive impact unless they have a good pay rise every year or climb the ladder right at the end of their working life Quote Link to comment Share on other sites More sharing options...
keg Posted March 15, 2017 Report Share Posted March 15, 2017 To be clear, i read it that they are closing it to new joiners? If they are, can't blame them. When i worked for Sony, they did the same, also offering those of us still in final salary lots of cash to move over. Brother used to work for Focus DIY and they weren't given the choice 25 years of paying into a final salary scheme only to be told it was being converted to money purchase, I don't get on with him but had to feel for him over that. Looking at the hole in the Vauxhall scheme i can hardly blame them. Huge profits now but what happens in the future? Quote Link to comment Share on other sites More sharing options...
arm3000gt Posted March 15, 2017 Report Share Posted March 15, 2017 I was about to say i thought a final salary pension was a thing of the past. For the lads on the shop floor i doubt it would have a massive impact unless they have a good pay rise every year or climb the ladder right at the end of their working life Even for the lowest paid over a whole career it will make a large difference to the final pension pot. My final salary was closed. I've not looked into it in huge detail but my pension pot will be in the region of 100-150,000 smaller depending on my personal contributions into the new defined contribution scheme. That was with me projected at staying at the same pay (just below national average) with inflation rises per year. I will need to stump up a huge % of my salary to match what I would have got. It's just one of those things nothing I can do about it. I've just got to work harder or adjust my retirement plans but in my case I suspect it will require both of those. It's not only about company profits though. I imagine most final salary schemes are in large if not huge deficits. I think the deficit in the scheme I was in rose by something crazy like 100m in one year! There are people on final salary schemes retiring at 60 who with a bit of luck live a further 20+ years. In 10 they will probably withdrawn more than even the best invested scheme would have grown by. They are not sustainable and can quickly become a millstone around the neck of any company. Just look at the steel industry. No one wants to buy a company huge pension liabilities. Those who have one should thank their lucky stars and cling on for as long as possible. In any case as with any globalised brand/company it's all about delivery for the lowest cost and maximum profit for the shareholder. Get rid of final salary pension nice boost to the bottom line. Apology that has turned into a bit of a rant. Quote Link to comment Share on other sites More sharing options...
Cranfield Posted March 15, 2017 Report Share Posted March 15, 2017 That settles it for me..............................I will never by a BMW. Quote Link to comment Share on other sites More sharing options...
daveboy Posted March 16, 2017 Report Share Posted March 16, 2017 The wife works for a high street bank and her final salary pension was closed about 10 years ago. She had worked for the bank 20 years and the pension figure was £12,000 at 60 (index linked) She had 20 years left to work so was able to make a direct comparison.....the new figure for the next 20 years was £2,500. Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted March 16, 2017 Report Share Posted March 16, 2017 At my last place we were in a final salary pension scheme but then they changed the rules. We were OK as we were already in it, but everyone who joined it after a certain date had to go into a money purchase scheme. Even though I am no longer there I keep getting offered money to transfer into a different scheme. Quote Link to comment Share on other sites More sharing options...
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