On Mon, 30 Jan 2006, CLYDE DEMPSTER wrote:

"Neil Williams" wrote in message
oups.com...

Personally, I find a money purchase scheme invested in a number of
places to be more secure, even if it won't necessarily give as good a
final figure.

Thanks for the measured response. Sounds as if you have the money to
invest. As a driver i am lucky enough to earn a good salary but there
are many on low salaries that work on both the underground and
overground railways. With little or nothing to pay into the money
purchase schemes it seems that they can look forward to a less
prosperous retierment than at present under the final salary scheme.
That dosent seem right to me.

At the last valuation of the scheme i am member of there was a small
short fall which was put right by raising the contibutions over the
course of a couple of years. Although the scheme is in a good financial
state they still wanted to introduce a money purchase scheme. A lot less
exspensive for the company ofcourse.

That's the rub. This is not about final salary vs money purchase, it's
about how much the employer is putting in. A money purchase scheme with
the same level of contribution from them as your current final salary
scheme would be just as good as it, wouldn't it?.

That said, my pension's final salary, and the chaps running it seem
convinced that they can keep it that way indefinitely.

tom

--
Don't trust the laws of men. Trust the laws of mathematics.