B
bobgrey
Guest
Should a member with 15 years service stay with the current DB plan or move to the new DC plan? Members of the DB Scheme will have their pensionable service "frozen" with effect from 01/10/2010. In future any increases in pensionable salary will be limited to the lower of the CPI or 3% p.a. Pension benefits from 01/10/2010 will be provided by the new DC Scheme where Rehab will make a contribution of 6% of gross salary for each employee. The employee is not required to makea contribution but may choose to.Alternatively, an employee may choose to continue to accrue future service in the DB Scheme but will be required to contribute to the cost of providing benefits at a rate 8% of pensionable salary p.a. The estimated fgures supplied by Rehab suggest that the DC Scheme, with a 3% contribution by me, is likely to deliver a a pension for me in 28 years time that could be 62% greater than the pension I would receive by staying with the DB Scheme with an 8% contribution by me. There appears to be a certainty with the DB Scheme whereas the DC Scheme seems to be a gamble. I have to advise them of my decision by Friday next 28/08/2010. Any advice?