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  • P-p-p-pick up a pension

    MNOPP (Merchant Navy Officers' Pension Plan)
    JOINING THE PLAN

    You can join the Plan if you are:

    An Officer (remember this includes a Cadet or Trainee) and

    Employed by a company that participates in the Plan and

    Liable for UK Tax even if not paying tax eg: if covered by the Seafarers Foreign Earnings Deductions and

    Aged 18 or over (but under age 61)

    If you are not liable for UK Tax because you are not resident in the UK, you may still join the Plan (as long as you fulfil the other conditions set out above) provided that you are employed by a company that is liable for UK Tax.

    Your employer has agreed to provide Plan membership to all their eligible employees and should enter you automatically. If you are not entered into the Plan within the first month of your employment you should tell your personnel department that you wish to become a member and ensure that arrangements have been made to deduct contributions from your salary with effect from the commencement of your employment.

    If you choose not to join the Plan when you are first eligible, you may change your mind and apply to join at a later date. You should however be aware that in these circumstances you may be required to provide medical evidence in respect of the lump sum death benefit. You should note therefore that if you do not join when you are first eligible you will not be covered for the lump sum death benefit until confirmation has been given to you by MNPA.

    You should complete the membership application form which you can download from Member Form section of this website and give this to the payroll department of your employer. At the same time you are advised to complete and return the Expression of Wish form to tell the Trustee to whom you would like the death benefits paid in the event of your death.

    Important Note:

    If you are employed by a company which offers two tier salary arrangements under which MNOPP members accept a lower salary and you also benefit from the Seafarers Foreign Earning Deductions whereby either no tax is paid or any tax you pay is refunded to you at the end of each tax year, you may wish to seek personal financial advice before you apply to join the MNOPP as to whether an alternative arrangement might be more beneficial. There are circumstances where the Plan may not be the most appropriate savings vehicle but your overall circumstances need to be taken into account to determine whether this could be so.

    Pension and investment advice to guide you on this is available from The Pension Partnership (TPP), a regulated firm of independent pension consultants. The Personal Financial Planning team within MNPA has now merged with TPP and are fully acquainted with the pension options and special circumstances of Merchant Navy Officers. It is likely that a fee would be charged for any such advice. TPP can be contacted by telephone on 01252 861380 or by e-mail to [email protected]. Details of TPP can also be found on the company's web site at http://www.pensionspartnership.co.uk
    http://www.mnopp.co.uk/Joining.htm

    Emeritus Admin & Founding Member

  • #2
    Re: P-p-p-pick up a pension

    I'm in the MNOPP and would recommend it to anyone - you're effectively gaining a free 5% increase in wages through your employers contributions.

    Comment


    • #3
      Re: P-p-p-pick up a pension

      Im curious about pension schemes because as we all know it is highly important.

      How much do you typically pay into your pension every time you recieve your salary and what ius the typical pay out when you reach your golden years.

      I hope its going to be more than the amount offered by the state pension. Any info or links would be appreciated.

      Thanks
      I distrust camels, and anyone else who can go a week without a drink.

      Comment


      • #4
        Re: P-p-p-pick up a pension

        It's something that most of us are on a steep learning curve about, as very little info or financial education has ever been offered by any government.

        We have to say that "nothing we say on here constitutes professional financial advice, and you should consult a financial adviser" etc...

        I think generally speaking, the younger you start, the less you'll need to pay, as the fund accumulates; but I reckon ?100-200 a month is the sort of level that would give you a very nice pension if you started paying into it at your age. Maybe 3-5% of your income.

        The best pensions in the world that I've seen are Chevron & Shell, Diageo (Guinness & Whisky), and the UPP (university lecturers), and of course the military ones... these are not MN ones though. they are the career company man ones I think, they are the last remaining final salary schemes in the world, and could give you pensions in the region of ?27-37k+ a year according to some online calculators I've seen.
        The MNOPP, like most non-final salary (i.e most) pension plans is likely to be less generous, but still worth having.
        It then gets more complex as you start pondering various future scenarios when contemplating where you might be able to spend your autumn years, how much you'd need, what additional investments you might want to or be able to make, and what the world might be like in 30-40 years time! This is why professional financial advisers make a good living charging you to conjure up a plan based on the requirements you give them.

        I reckon any pension that pays you over ?20k a year is very good; below half that is bad; everything inbetween is more normal, which I suspect is why most people keep the state pension, and look at houses to help maintain them as they shuffle in their piss-stained slippers towards eternity.
        Emeritus Admin & Founding Member

        Comment


        • #5
          Re: P-p-p-pick up a pension

          Be aware that it all depends on the company you work for. Most UK based employers will provide a pension scheme of some type (I beleive there required to by law).

          However if you work for a foreign company (like me) - you are most likely not going to have that option and may have to arrange a personal pension of your own!

          And of course your basic state pension which you can pay voluntary NI contributions to maintain. (I think its around ?400 a year).
          ?Twenty years from now you will be more disappointed by the things you didn?t do than by the ones you did do. So throw off the bowlines, sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.?

          ? Mark Twain
          myBlog | @alistairuk | flickr | youtube Views and opinions expressed are those of myself and not representative of any employer or other associated party.

          Comment


          • #6
            Re: P-p-p-pick up a pension

            Anyone know whats better off with civil service pensions? I had a thing come through about nuvos and partnership and quite frankly im clueless!

            Comment


            • #7
              Re: P-p-p-pick up a pension

              Originally posted by nemo
              I think generally speaking, the younger you start, the less you'll need to pay, as the fund accumulates; but I reckon ?100-200 a month is the sort of level that would give you a very nice pension if you started paying into it at your age. Maybe 3-5% of your income.
              A more realistic figure(assuming you want to avoid the piss-stained slipper scenario) would be more like 10% of gross. The more you pay in earlier, the sooner you can take it easy once you reach your fifties(not necessarily retire, but come ashore or move to something cushier.) As an older cadet I'm looking at banking even more than that if I want to retire before the government want me to, although investment in other stuff like property gets factored in as well.
              '... English is about as pure as a cribhouse whore. We don't
              just borrow words; on occasion, English has pursued other languages
              down alleyways to beat them unconscious and rifle their pockets for
              new vocabulary.' - James Davis Nicoll

              Comment


              • #8
                Re: P-p-p-pick up a pension

                I looked into this one kayak. I think nuvos is the way things are going... I can't quite remember the reasons why though, there were some though.

                Here's some links of interest though:
                http://forums.moneysavingexpert.com/sho ... p?t=655389
                http://www.royalnavy.mod.uk/upload/pdf/ ... 115708.pdf
                http://www.nff.org.uk/pensions_rn.htm
                http://www.forpen.org/pensions-explained/afps05/
                Emeritus Admin & Founding Member

                Comment


                • #9
                  Re: P-p-p-pick up a pension

                  In a company pension, the company usually matches what you pay in.
                  ?200 a month is about 10% of minimum likely pay as a qualified officer; I was thinking that ?100 a month for a start by an 18-year-old isn't such a bad thing, given that it's compounding interest, and few people that age having anything like that on the go!

                  Personally, I don't really want to retire, just move into more cerebral lines of work as I go for triple figures =P
                  (I used to work in nursing homes as my first job, and I've seen how bad things can get if you don't make good choices earlier on in life). I'm probably amongst the oldest cadets (but not the oldest!), but I've always assumed that the retirement age was destined to rise. I'm not sure how well property is going to turn out as an investment, personally. I'm trying to learn more about investing in other assets, like metals and agricultural stuff (thinking in a Malthusian way there...).

                  Moving into teaching may be popular if college lecturers can join the very cushy UPP final salary scheme that frankly is one of the main reasons why people stay on as lecturers for so long.
                  Retiring in low cost-of-living countries, like Costa Rica, Thailand, Fiji etc... can work for some (these sorts of countries tend to have special visas where you have to be over 50 and can prove you've got about ?8k or so coming in every year).
                  Another possibility is moving into the financial side of shipping and making a mint (dunno how likely that is though!).

                  Here's some more links of interest:

                  General:
                  http://www.pensionsorter.co.uk/pensions_pros_cons.html
                  http://www.financialadvice.co.uk/pensions/

                  QROPS offshore pension:
                  http://www.shelteroffshore.com/index.ph ... ons-10586/
                  http://www.hmrc.gov.uk/PENSIONSCHEMES/qrops-list.htm
                  http://www.qrops.org/qrops-and-expats

                  Multiple Pensions:
                  http://www.thepensionservice.gov.uk/pla ... an-one.asp

                  Nomination:
                  http://www.lovemoney.com/news/saving-fo ... -1780.aspx

                  May not apply to many...
                  http://www.myeggnest.com/info/childrens-pension.aspx
                  http://www.financialadvice.co.uk/pensio ... sions.html
                  Emeritus Admin & Founding Member

                  Comment


                  • #10
                    Re: P-p-p-pick up a pension

                    Childrens pension!?! I'm not even going to click on that one. My mention of property was more by way of the necessity of a roof to live under when not afloat rather than speculation, BTL etc. Rent is dead money whichever way you cut it. Property in the UK is likely to be pretty flat for the next few years anywhoo, other than maybe property renovation, and I don't really have the patience for that.
                    '... English is about as pure as a cribhouse whore. We don't
                    just borrow words; on occasion, English has pursued other languages
                    down alleyways to beat them unconscious and rifle their pockets for
                    new vocabulary.' - James Davis Nicoll

                    Comment


                    • #11
                      Re: P-p-p-pick up a pension

                      Rent isn't dead money when it's cheaper than the interest component of your monthly mortgage repayment, is it?! I expect house prices to fall over the next 5+ years, due to the sums not adding up.

                      I currently pay rent that is half what a mate of mine is paying every month for a mortgage, I doubt only 50% of that monthly repayment is interest; you should see his face - reminds me of Droopy Dawg.

                      I mentioned property thinking of equity release to pay for care and OAP paraphernalia... I guess, SAGA cruises are out for most of us once we reach the 2040s...
                      Emeritus Admin & Founding Member

                      Comment


                      • #12
                        Re: P-p-p-pick up a pension

                        Live somewhere cheaper! you are right though(I believe), it's difficult to see property doing anything better than treading water medium term and a drop short term. Combine with a rise in interest next year it will get bumpy for stretched BTL types and idiots on interest only mortgages. In truth it only looks good to me because I'm already paying the mortgage, and it was small to begin with.
                        '... English is about as pure as a cribhouse whore. We don't
                        just borrow words; on occasion, English has pursued other languages
                        down alleyways to beat them unconscious and rifle their pockets for
                        new vocabulary.' - James Davis Nicoll

                        Comment


                        • #13
                          Re: P-p-p-pick up a pension

                          MNOPP - I had a look at the booklet on the http://www.mnopp.co.uk/PDFs/Final%20Mem ... ooklet.pdf website and it seems a pretty standard scheme.

                          Its advantage over a stakeholder pension (if they still exist) is that the admin fees should be lower so they don't eat into the performance of the investment funds so much. Its quite a basic scheme compared to other compqrable company schemes, there is no real choice of funds to invest in if you want to be a bit more hands on with your investment choices. (Its 60% UK, 40% overseas).

                          Its definitely better than not having a pension for the 5% company contribution alone. The investment growth of the default equity fund has averaged 5% a year over the last 5 years. If they had more chocies, you could have invested in emerging markets and got 20% a year instead, but thats hindsight.

                          The alternative to a comapny pension is to invest the money yourself in a SIPP self invested pension (not sure if you can get the company to contribute if you do this) and the higher admin costs usually outweigh the benefits.

                          Or invest the money yourself outside of a pension and lose out on the contribution tax breaks.

                          Its all highly confusing.

                          I've worked in the pension / investment industry for the last 7 years. I'm happy to provide general advice to anyone who wants it.
                          Former TH cadet with experience of cruise ships, buoy tenders, research ships and oil tankers

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