BC FINANCE
Saved by @jacobhtml

1/ A thread [1/2]about your NHS pensions, tax & the age discrmination “McCloud” case👇

OK this is complicated stuff, Im going to take you through it step by step. But its important, and will affect your pension, so buckle up and pay attention!

Please share & RT/share awareness

 2/ To understand “McCloud” let's rewind to yesteryear- you gave a lifetime of public service & (deservingly) got a good “final salary” pension.

Broadly in 1995 (or “legacy”) pension scheme, each year you got 1/80th of your “final salary” as a pension & 3/80th a tax free lump sum
3/ Back in yesteryear, pensions cost 5 or 6% gross salary. For example you worked 37 years & final salary £120k, pension= 37/80ths x £120k=£55,500. You would get this at normal retirement age- 60yrs & it would be index linked to inflation, plus a lump sum (3/80ths) of £166,500
4/ So roll on 2006-08 & government were worried about affordability of the scheme. Life expectancy was increasing so people were in retirement longer. So they made the scheme more expensive & introduced a new “2008” section for new entrants. The 08 scheme removed the lump sum
5/ Existing 95 members had a “choice” to move to ‘08’ scheme. It had a higher retirement age (65) but paid a higher “accrual rate” (60ths not 80ths). Rather than “final salary” (best of last 3 yrs) it was based on a more complicated “reckonable” pay based on best 3/10 yrs pay.
6/ So sorted? They made the scheme more expensive for all, and introduced this new scheme with later retirement to make it more sustainable. And around the same time in 2007/08 they also introduced two new taxes - lifetime allowance (£1.5m) and annual allowance (£255k).
7/ So lifetime allowance is a tax on the total value of your pension at retirement. As we have no “pot” in the NHS scheme, they estimate the cost at 20x pension plus lump sum. So broadly your pension could be £65k (1995 terms) before you were affected, so very few were.
8/ Similarly annual allowance was based on how how much your pension grew each year. Again as no real “pot” this was estimated (19x pension growth) - but at an AA of £255,000/yr this was a tax to stop tax avoidance in the super-rich - not hardworking public sector workers.
9/ So that's quite a lot of tinkering already, and in all honesty they should probably have left the NHS pension scheme alone for a generation. We were now paying more, to retire later, without a lump sum. LTA and AA were set at a level to tax only the very best pensions.
10/ But in 2011 the coalition gvmnt had their eyes on wider reforms across the whole public sector. So they asked Lord Hutton to look at affordability of all “final salary” schemes (ignoring that the NHS had just reformed already) and making sure the taxpayer was protected
11/ Hutton decided public sector workers deserved a “defined benefit” scheme but this would be “career average” or CARE (not final salary) and linked to state pension aged (not 60 or 65) to allow future proofing - allowing this to come with a 25 year promise to not change again
12/ Part of that deal was a “fixed cost” or “cost cap” to taxpayers. If schemes got to too expensive (cost cap ceiling breach) i.e. people living longer, would be made less generous. If scheme got too “cheap” (cost floor breach) i.e. pay rises lower, would be made more generous
13/ So despite the recent changes with the 2008 scheme, government pressed on with the “reformed” 2015 NHS scheme
● CARE (not fin sal)
● 1/54ths (not 80ths/60ths), “revalued” at 1.5%/yr
● State pension age (not 60 or 65)
● Final salary link maintained for pre-2015 pension
14/ Lord Hutton warned government not to “protect” members close to retirement. After all they had most accrued “legacy” benefits.

Government ignored him and decided to either fully protect those closest (full protection) or just behind this cohort (tapered protection)

Whoops
15/ To add insult to injury, around the same time, the coalition government decided to greatly reduce both the LTA and AA. The former reduced from a peak of £1.8m down to £1m - a level which could impact consultants and GPs. Additionally AA was to reduce from £255k to £40k.
16/ And in 2016/17 government pressed on with one of the most ill informed tax policies ever implemented - the “tapered” annual allowance. This further reduced the AA down to a minimum of £10k, and now (20/21) a minimum of £4k (yes from £255k) for the highest earners.
17/ A number of groups including judges (McCloud) and firefighters (Sergeant) brought age discrimination cases. Important to realise that it was the “transitional protection” *not* the 2015 schemes themselves found to be discriminatory. Upheld by Court of Appeal December 2018
18/ Also crucially important to realise timing of these cases is v important. Too early - i.e. in 2015 - and government can remove discrimination by “levelling down” i.e. removing the (illegal) protections for all - this would have put those who received it in a worse position.
19/ So in 2020 government has been consulting to see how to “remedy” the discrimination accross the whole public sector. After 2022 *ALL* members will go into the reformed (i.e. 2015) schemes. This leaves the 7 year “remedy period” - 2015-22.
20/ If you were a member of the scheme on 31/3/12 & in service during the remedy period (2015 -22, or your retirement date if earlier), you will be asked to decide which pension scheme benefits you would like to receive for that period - “legacy” (1995/08) or “reformed” (2015)
21/ This is going to be pretty complicated, for a whole host of reasons. *DO NOT ASSUME* you will always be best choosing legacy benefits. Lets talk you through some of the important issues resolved in the consultation, & significant questions which remain
22/ First thing to say is *don't worry, there's no rush*. Under ”DCU” or deferred choice underpin - you choose the best pension (for 2015-2022) either legacy 95/08 or reformed ‘15 at *your retirement*. That's good, you can always choose the best pension when it is known.
23/ This is much better than “immediate choice” that was also considered. Though there is a temptation to get this “sorted”, you might make the wrong choice and got a less valuable pension, especially if the rules change in the future (past performance in gvmnt meddling noted)
24/ AA Tax - this is where it starts to get complicated. During the legacy period AA tax rules changed twice, and in 19/20 in England & Wales there was a compensation scheme for clinicians with AA. This means there are 4 different tax periods!
25/ Members need to calculate AA for 7 years both legacy & reformed scheme. Pension schemes have till October 2023 to issue information to help you with this. For tax, members will ALL be assumed initially to have stayed in the legacy scheme.

contin/ 26.. https://t.co/jSvpkEyzj0

More from Finance

Steve
Steve
@braidedmanga
Ivor Cummins has been wrong (or lying) almost entirely throughout this pandemic and got paid handsomly for it.

He has been wrong (or lying) so often that it will be nearly impossible for me to track every grift, lie, deceit, manipulation he has pulled. I will use...


... other sources who have been trying to shine on light on this grifter (as I have tried to do, time and again:


Example #1: "Still not seeing Sweden signal versus Denmark really"... There it was (Images attached).
19 to 80 is an over 300% difference.

Tweet: https://t.co/36FnYnsRT9


Example #2 - "Yes, I'm comparing the Noridcs / No, you cannot compare the Nordics."

I wonder why...

Tweets: https://t.co/XLfoX4rpck / https://t.co/vjE1ctLU5x


Example #3 - "I'm only looking at what makes the data fit in my favour" a.k.a moving the goalposts.

Tweets: https://t.co/vcDpTu3qyj / https://t.co/CA3N6hC2Lq
FINANCE , ALL
Simon Lelieveldt
Simon Lelieveldt
@finhstamsterdam
The Dutch regulator and DNB as financial supervisor are a tough cookie to deal with. In essence they hyperregulate EU-rules into goldplated Dutch rules which go beyond what is prescribed in Europe.

All NL-customers at British banks may thus be kicked out on brexit.

Thread

/1

If we start with the capital requirements directive, it says attracting deposits is forbidden. In article 9.

https://t.co/RYl7SXligC


Now the translation of that rule into Dutch law is slightly expanded to not only prohibit attracting deposits, but to also prohibit, having those deposits under custody ('ter beschikking hebben').

That's not in EU law, but it is in our Dutch law.

https://t.co/PsbWfNY3PA


So if you wonder how this would work out for UK banks and Payment institutions servicing Dutch customers. Have a read at the technical explanation of DNB, the financial supervisor and their summarising table.

https://t.co/LL0fAnYkRJ

Passive servicing of Dutch is not allowed!


Any bank or PSP in the UK that continues to serve Dutch customers (as in retail customers, professional players are excepted) can thus be subject to fines and policing under Dutch law.

Meaning we not only have Accidental American issues in payments, but also Accidental Dutchies
FINANCE
Advertisement
Saturnalia "Ultimate Survivor" Sundown
Saturnalia "Ultimate S...
@SaturnaliaSund1
Hello friends, I am back! I have been doing a ton of financial research and am very disturbed by what I have learned.

Please enjoy a long (irresponsibly LONG) story about central banking, manufactured crises, George Soros, and the Great Reset.


This thred will be much longer and more dry than my usual, pls bear with me. This one's legit important. The first portion will reference works by Dr. Richard Werner, and the latter George Soros.


Note my views are not indicative of those of people quoted. This post does not constitute investment counsel.

To understand current financial conditions you bare minimum have to go back to WWII. Bretton Woods has just been signed, establishing the IMF and World Bank, and the USD as standard for international settlement.


But we're not talking about US history (yet), we have to look at Japan. Unlike Germany, which had it's economy stripped down and sold off by the victorious Allies, Japan's system remained remarkably intact.
FINANCE
Lewis Goodall
Lewis Goodall
@lewis_goodall
Weird feeling. After 10.5 years and roughly £21,000 of debt- I finally paid off the last instalment of my student loan today.

Next month, for the first time- I’ll receive my full post tax salary, for the first time since I graduated.

Sharing as an example of how the system works in practice. In truth I only seriously started paying off the capital in the last few years, when I started to earn a good salary, paying roughly £400 a month off. I suspect many will never significantly eat into the capital.

That’s especially the case for those those under the new regime, who have over £50k of debt. I was lucky in a) lower fees (3k not 9k) and maintenance grant (not loan) still existed.

Indeed IFS forecasts that 83% of students from PST 2012 reforms won’t fully pay back their loan.

Of course those who don’t pay off their fees, the cost will eventually have to be absorbed by the Treasury. Having 17% pay back all and the rest some will still be cheaper for HMT than no loans at all. But we should recognise the a) odd conceit that we have a system of loans...

...which the vast maj will never pay back and that instead b) that graduates are paying in effect a topped up rate of income tax for many, many years.
FINANCE
Thomas Chua
Thomas Chua
@SteadyCompound
Marathon Asset produced several iconic investors such as Nick Sleep and Jeremy Hosking.

Their letters from 2002 to 2015 provided a treasure trove of insights into their investment frameworks and how they look at the capital cycle.

Here are my main takeaways:


1/ Periods of high profitability leads to reckless investments.

When profits are high:

-Boost CAPEX with little regard for ROIC
-Competitors will follow suit to avoid losing market share
-CEO's incentives aren't aligned with shareholders

It's a race to the bottom.


2/ The capital cycle will swing down when investments are taken too far.

Forecasts that were reasonable will now look overly optimistic.

Profits collapse, management teams are changed, CAPEX is cut, and consolidation begins.

This will pave way for a recovery of profits.


3/ Asset growth matters

Consider both asset growth at the company and industry level.

Avoid industries where assets are growing rapidly.


4/ We tend to extrapolate

When overdone, investments that appear logical at first can become disastrous.

We have a tendency to forecast linearly when many things are cyclical.

Examples: trade cycles, credit cycles, etc
BOOKS , FINANCE

You May Also Like

Simon DeDeo
Simon DeDeo
@SimonDeDeo
This is a pretty valiant attempt to defend the "Feminist Glaciology" article, which says conventional wisdom is wrong, and this is a solid piece of scholarship. I'll beg to differ, because I think Jeffery, here, is confusing scholarship with "saying things that seem right".


The article is, at heart, deeply weird, even essentialist. Here, for example, is the claim that proposing climate engineering is a "man" thing. Also a "man" thing: attempting to get distance from a topic, approaching it in a disinterested fashion.


Also a "man" thing—physical courage. (I guess, not quite: physical courage "co-constitutes" masculinist glaciology along with nationalism and colonialism.)


There's criticism of a New York Times article that talks about glaciology adventures, which makes a similar point.


At the heart of this chunk is the claim that glaciology excludes women because of a narrative of scientific objectivity and physical adventure. This is a strong claim! It's not enough to say, hey, sure, sounds good. Is it true?
ALL
k\u0101rthik \u0b95\u0bbe\u0bb0\u0bcd\u0ba4\u0bcd\u0ba4\u0bbf\u0b95\u0bcd \u0915\u093e\u0930\u094d\u0924\u093f\u0915 \U0001f1ee\U0001f1f3\U0001f1ee\U0001f1f3\U0001f1ee\U0001f1f3 | Sanatani
kārthik கார்த்திக் कार...
@almightykarthik
Hello Dear Tweeples!

It’s Siddhars time of the week! Last week I shared story of Guru (Machamuni or Yogi Matsyendranath), this week I bring you information on his Shishya.

#Thread on Gorakanathar Siddhar.

@LostTemple7


His origin story is interesting, though I couldn’t verify it’s authenticity, so not sharing the story here. He’s shishya of Machamuni Siddhar and also learnt from Agasthiya Siddhar.

@HelloNNewman @RajiIndustani @Kishoreciyer1

Unlike other Siddhars, he is depicted as either with a Tiger or seated & wearing Tiger skin. While I couldn’t find any explanation for this. My interpretation is as follows:

Tiger is a predator that lurks around and attacks unexpectedly.


Our 5 indriyas and 5 vikitis also similar to Tiger, they lurk around and attacks our thoughts when we’re least expecting. Gorakkar is said to have mastered these aspects, thus to denote this, he shown with Tiger.

@Itishree001 @VarierSangitha @jananisampath

Gorakanathar or Gorakshnath (as he’s known in the Nath Sampraday) is celebrated Guru in both Northern and Southern part of India. He’s one of the NavNath in Nath Sampraday and also 18 Siddhars of Tamil tradition. During his life, he’s travelled Indian subcontinent extensively +
RELIGION , ALL
Advertisement
Ranvijay Singh\U0001f1ee\U0001f1f3
Ranvijay Singh🇮🇳...
@ranvijayT90
#Thread The legend of Ekadash Mukhi Hanuman ji...


Mahadev himself narrated the story of Ekadash Mukhi Hanuman ji to Maa Parvati. Once a great monster named Kalkarmukh performed the severe penance of Brahma ji.


Pleased with the austerity of the demon, Brahma ji gave him a boon that the person who will have eleven Heads like you and who was born on the day of your birth, only he/she will be able to kill you. No one else will kill you.


After getting a boon from Brahma ji, Kalkarmukh created a ruckus in all three lok. He invaded Swarg and snatched all the rights of the Devtas and became himself the king of Swarg.


All Devtagan came to Shri Rama and asked him for help. Hearing the agony of the Devtagan, Shri Ram called his supreme devotee Hanuman ji and said, "Pawan Putra, Sankatmochan".
HANUMANBHAKTI
Anu Satheesh \U0001f1ee\U0001f1f3
Anu Satheesh 🇮🇳...
@AnuSatheesh5
Chennimalai Murugan Kovil
#Erode
#TamilNaduTemples 🚩

Chennimalai Murugan Temple is located  near Perunthurai in Erode District. Murugan is worshipped here as Dandayudapani. Temple is situated on the banks of Noyyal river also called Kanchima Nadhi. Temple is situated in a hill


Sthala Puranam says that, there lived a Landlord who had many cows in his farm. One among them was a Black Cow, which didn't give milk. Land lord observed that evening time, when all the cows came back after grazing, this cow used to go to a particular spot and gave all  the milk


by itself. He decided to dig the spot where the cow gave its milk

On digging a beautiful Vigraham of Murugan was found, but lower portion was very rough. So he called a great sculptor to soften it. Everyone was shocked to see that on the first chisel the vigraham bleeded.


Land lord realized that Murugan wanted the Vigraham the way it was.

Thus Prathishta was done on Chennimalai hill. It is believed that Sivalaya Chola got relieved from his Brahmahatti Dosha here. Kanda Shasti Kavacham was first offered here.

Muruganukku Haro Hara
🙏🕉🙏
ALL
James Felton
James Felton
@JimMFelton
Butt plugs were originally sold as a miracle cure for headaches, acne, and insanity

Thread, article here and h/t: @qikipedia :
https://t.co/Ts84xnmWKJ


For a long time, medicine was pre-occupied with the question "can this be solved by putting something in the butt?"

Take, for example, tobacco smoke enemas, in which 18th Century physicians saw drowning victims and attempted to de-deadify them by blowing tobacco smoke up their rectums with a pipe.


Despite having no medical benefit whatsoever, the practice was popular, and enema kits lined the Thames like lifebelts, ready to be used as one final humiliation for somebody who was crap at swimming.

This practice ended sometime after 1800 when it became apparent that it didn't really work, given how the anus famously isn't really connected to the lungs, but doctors weren't quite finished with having a poke around in the old anus to see what happens just yet.
TECH