Retirement at 60 an option for builders

RETIREMENT at 60 is an option in a new pension scheme for the construction industry.

This is just one of the changes in the country’s largest pension scheme.

Pensions will be transferred to the Construction Workers Pension Scheme (CWPS) on July 1 from the Construction Federation Operatives Pension Scheme (CFOPS).

People aged 60-70 may retire as the mandatory retirement age of 65 is being changed with the new scheme. With the new scheme, members will get an individual statement each year giving the value of their own ‘pension pot’ and the projection of the value of the pension at age 65.

Retiring employees will also be able to choose between a pension with or without a pension increase option.

An estimated one-in-six of all male workers in the country between the ages of 20 and 65 are members of existing scheme.

The CWPS will be a hybrid scheme where each member has their own account, with annuities purchased from within the scheme.

The changes include each member having an individual pension fund that is fully portable. The scheme will see a 7% gross pension contribution with 40% of the monies coming from the employee and 60% coming from the employer.

Chairman of the trustees Oliver Haslette said : “This change is taking place following a major pensions review by employers and trade unions in the industry that started in 2000. We wanted a contemporary pension scheme that will provide for their likely future needs, as it’s more important than ever that the pension arrangements are secure and suitable for the current pension scheme.”

The pension that members will receive is dependent on factors including the annuity rate and the performance of the investment funds at the time of drawing down the pension.

It will take at least nine months to wind up the current scheme.