tag:blogger.com,1999:blog-4732407426313451205.post5278585941955462382..comments2024-03-08T15:43:20.236+00:00Comments on Keynesian Liberal: Another WorldPeter Wrigleyhttp://www.blogger.com/profile/16481117156930677255noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4732407426313451205.post-17355491479114672632010-10-17T18:30:02.214+01:002010-10-17T18:30:02.214+01:00A friend and former colleague (ie also a teacher) ...A friend and former colleague (ie also a teacher) has contacted me by Email as follows.<br /> "I have only quickly read your piece and should point out that that, although our Teachers Pension is only calculated on 1/80ths instead of 1/60s we also get a lump sum equal to one and a half times our last year’s salary whereas those who get 1/60s do not get any lump sum. A lump sum is preferable because you can either purchase an annuity to boost your pension if you wish or you can invest it in other ways. Once in a pension or annuity it dies with you whereas a lump sum can be passed on to your family or next-of-kin. So Teachers are not so bad off with 1/80s in my opinion."<br /><br />I entirely agree that the lump sum (which I received and appreciated) makes the teachers' pensions look rather better. However, the advantage on being able to pass it on to family or next of kin (or children and grandchildren)goes rather beyond the scope of a pension in my view, assuming that a surviving partner is cvered by the pension, which is, I understand, an option.Peter Wrigleyhttps://www.blogger.com/profile/16481117156930677255noreply@blogger.com