| Pensions
Pensions are very important to staff
in the magistrates courts and the public sector.
While pay is for many staff pay is low or uncompetitive
in the magistrates’ courts service, the
option of a stable final salary pension scheme
are often considered one of the most attractive
elements of the employment package. The employer
and the employee make contributions to the scheme,
which the employee benefits from after retirement.
Therefore the employer contributions are a deferred
part of the pay package for the employees made
through the pension scheme.
Final salary pension schemes, sometimes called
“defined benefit schemes”, use salary
close to retirement, history suggests that this
is often the highest salary, to calculate the
pension. Consequently the benefits of the scheme
are fixed by the rules of the scheme and defined
by the final salary. In the magistrates courts
service the rules of the pension schemes are written
in legislation.
The other main type of pension is
called a “money purchase scheme”.
Under these schemes employees and in some cases
employers pay into an investment fund which are
used to buy an annuity on retirement. The value
of the pension depends on the level of contributions,
the performance of the investment and the cost
of annuities at retirement date. Therefore the
benefits are not defined by the rules of the scheme
in the same way as a final salary scheme.
Before April 2005
Outside London Magistrates Courts
employees are eligible to be members of the Local
Government Pension Scheme (LGPS). The LGPS is
a final salary scheme and the benefits are based
on 1/80th of final salary plus a tax free lump
sum worth 3x 1/80ths of final salary for each
year of membership. Employees contribute 6% of
salary. Details of the scheme can be found at
www.lg-employers.gov.uk/pensions/
GLMCA staff are eligible to be member of the PCSPS
Classic, Premium Scheme or Scheme or the LGPS.
The Classic scheme is structured in a similar
way to the LGPS, but has lower employee contributions
(1.5%).
After April 2005
Employees of Her Majesty’s
Court Service (HMCS) are eligible to be members
of the of the Principle Civil Service Pension
Scheme PCSPS. The PCSPS has a final salary scheme
based on 1/60th of final salary for each year
of membership called the Premium Scheme. Employees
contribute 3.5% of salary. The PCSPS also has
a money purchase scheme called the Partnership
Scheme. Details of the schemes can be found at www.civilservice-pensions.gov.uk/menu.asp
The transfer of past service credits
is cover on the Pension
Transfer page.
Pension Changes
Both the LGPS and the PCSPS Premium
Scheme face proposals for major changes. Look
out for information about the changes on these
pages, what the unions are doing nationally and
how you can get involved to help protect your
pension.
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