Hi
Our Defined Benefit Pension had a direct relationship to the value of the state pension in the calculations. I think it’s your final salary less twice the state pension x 40/80. Does this in effect mean that if the state pension were to increase €10 / week in the Budget 4% and at the same time say our wages only increased by say 2% our pension from the DB would be decreasing ?. If I understand it correctly it’s the mix that would be changing and not the overall value I.e. slightly more from the state pension and slightly less from the actual DB fund?.
One final question : if the above is correct does the converse also apply I.e. if the state pension went down would the DB Funds liability go up to maintain the overall pension value.
Hope that makes sense.
Thanks for any assistance
Our Defined Benefit Pension had a direct relationship to the value of the state pension in the calculations. I think it’s your final salary less twice the state pension x 40/80. Does this in effect mean that if the state pension were to increase €10 / week in the Budget 4% and at the same time say our wages only increased by say 2% our pension from the DB would be decreasing ?. If I understand it correctly it’s the mix that would be changing and not the overall value I.e. slightly more from the state pension and slightly less from the actual DB fund?.
One final question : if the above is correct does the converse also apply I.e. if the state pension went down would the DB Funds liability go up to maintain the overall pension value.
Hope that makes sense.
Thanks for any assistance