1. Cake or Crumbs Frank Harding Pensions Officer Warwickshire County Council 28 November 2013 Warwickshire County Council Warwickshire County Council Pension Fund Annual Meeting 2013

2. Local Government Earnings Survey 2012/13... Auto enrolment includes... People with significant service – who wish they had joined sooner People approaching retirement – who wonder whether it’s worth joining People who want to delay joining – for another 3 years at least Ingredients Imagine the LGPS CARE scheme for 3 people retiring at 66... Alex starts work on £12,000 and finishes on £15,000 Billie starts work on £12,000 and finishes on £21,000 Chris starts work on £12,000 and finishes on £42,000 Delayed membership of the LGPS affect pensions but... What do the numbers look like ? How do pensions compare with final salaries ? Warwickshire County Council earn below £15,00032% earn between £15,000 and £21,00035% earn between £21,000 and £42,00030% earn over £42,0003%

3. The cake shrinks Pensions converge on the Basic State Pension of £5,740 Alex’s pension could be £19,000 compared to a final salary of £15,000 Billie’s pension could be £21,900 compared to a final salary of £21,000 Chris’s pension could be £32,200 compared to a final salary of £42,000 Warwickshire County Council ( LGPS CARE scheme and constant prices )

4. Chris Final Salary £42,000 Pension %Joining LGPS at Final Salary183858 LGPS63% 45% 15% State14%14%14% Combined77% 59% 29% Billie Final Salary £21,000 Pension %Joining LGPS at Final Salary183858 LGPS77% 50% 16% State27%27%27% Combined104% 77% 43% Alex Final Salary £15,000 Pension %Joining LGPS at Final Salary183858 LGPS88% 54% 16% State38%38%38% Combined126% 92% 54% Joining LGPS at 18 Joining LGPS at 38 Pension £32,200 Pension £24,800 Pension £12,200 Pension £21,900 Pension £16,300 Pension £9,100 Pension £19,000 Pension £13,800 Pension £8,200 Joining LGPS at 58 Some have cherries others have crumbs of comfort Warwickshire County Council

5. Joining LGPS at 18 Joining LGPS at 38 Joining LGPS at 58 You can’t have your cake and eat it Nil £23,800£11,100 £14,600 £13 per week 4.64% after tax 81% £13,300 £11 per week 4.40% after tax 38% £12,000 £10 per week 4.40% after tax None Alex Final Salary £15,000 £29,000 Nil £12,600 £19,700 £17 per week 4.64% after tax 79% £15,800 £14 per week 4.64% after tax 35% £12,000 £10 per week 4.40% after tax None Billie Final Salary £21,000 £49,800£17,300 Nil £37,500 £39 per week 5.44% after tax 74% £24,800 £25 per week 5.20% after tax 26% £12,000 £10 per week 4.40% after tax None Chris Final Salary £42,000 Warwickshire County Council Joining Salary Contributions Missed contributions Joining Salary Contributions Missed contributions Joining Salary Contributions Missed contributions

6. Warwickshire County Council Summary Better sooner than later Better later than never

7. Warwickshire County Council