Reducing to part time hours and pension

[Wat69]

I’m in section C 32 years service. Looking at various options. Not 55 so cannot access any pension at the moment If I reduce my hours now from full time to part time does this effect any of my existing pension schemes or will it only affect the one I’m currently paying in to now ?

[tractorboy2]

I’m in section C 32 years service. Looking at various options. Not 55 so cannot access any pension at the moment If I reduce my hours now from full time to part time does this effect any of my existing pension schemes or will it only affect the one I’m currently paying in to now ?

Should only affect the DBCBS. As in you will be paying less into it.

[RobertT]

A while ago I asked the PSC a very similar question, but specifically about the final salary element of my pension. This is the answer I got:

Going part time will not impact your final salary pension as you have already built up your final salary service up to 31/03/2008 and we base your final salary on the full time equivalent when your pension is calculated.
 
Please note that your pensionable salary will be lower when you go part time so your contributions to the DBCBS will be based on your lower pensionable pay.

As far as I'm aware going part time won't affect the CARE/CSDB pension you accrued between 2008-2018 either.

You will also accrue pension and lump sum based on your pensionable pay at the time, when the new CDC scheme starts.

[Wat69]

I was hoping that was the answer I am hoping to retire in 6 years when I’m 60 but physically I don’t think I can continue working full time so as long as my final salary and CARE stay the same as they are now then I am not too bothered paying in less for next few years, 6% of something plus employers contributions still better than nothing. Thanks

[rambo1]

Don't forget if you do happen to do any overtime, anything up to 37 hrs a week will count towards the current (whatever that is!) scheme, at least I think it will.........Robert.

[RobertT]

Don't forget if you do happen to do any overtime, anything up to 37 hrs a week will count towards the current (whatever that is!) scheme, at least I think it will.........Robert.

Any OT up to full time hours is pensionable for those in the RMDCP, but I don't think it applies to those in the DBCBS, although I could be wrong?

[Wat69]

Thanks Robert

I will contact the PSC just to confirm everything before I consider part time working but at least its maybe an option

[heapsy]

Are you really likely to be physically better off going part time? I don't think so, unless you can get a duty with fewer days. 5 days is 5 days. The only thing that will change is that your pension wont be as good going forward. That will cost you a few quid. That's why I'm going at 60, no later.

[freespeech]

Don't forget if you do happen to do any overtime, anything up to 37 hrs a week will count towards the current (whatever that is!) scheme, at least I think it will.........Robert.

Any OT up to full time hours is pensionable for those in the RMDCP, but I don't think it applies to those in the DBCBS, although I could be wrong?

I'd be interested in that answer too.......my view is that treating additional hrs for PT staff up to FT hrs differently than standard hrs for FT staff would be discriminatory as FT and PT T&C's should be the same.

[RobertT]

Don't forget if you do happen to do any overtime, anything up to 37 hrs a week will count towards the current (whatever that is!) scheme, at least I think it will.........Robert.

Any OT up to full time hours is pensionable for those in the RMDCP, but I don't think it applies to those in the DBCBS, although I could be wrong?

I'd be interested in that answer too.......my view is that treating additional hrs for PT staff up to FT hrs differently than standard hrs for FT staff would be discriminatory as FT and PT T&C's should be the same.

I think I'm right in saying that any OT done by part timers is at the normal hourly rate up to full time hours and then changes to OT rate.
I'm sure someone more knowledgable will correct me if I'm wrong.

Whether that OT is pensionable or not will depend on the scheme you're in. I don't think it is for part time members of the RMPP(sections A, B, C & F).

Going by the 4 Pillars agreement, only basic pay and pensionable allowances will count for pension purposes with the new CDC scheme.

[rogersh]

Going by the 4 Pillars agreement, only basic pay and pensionable allowances will count for pension purposes with the new CDC scheme.
[/quote]

Robert, I am in the DC scheme & pay % on my Basic (pensionable) pay. If i did overtime the % would be higher.

Are you saying there is a difference in the new CDC scheme. As you stated "Only basic pay .... will count" as opposed to pensionable pay!

[RobertT]

Going by the 4 Pillars agreement, only basic pay and pensionable allowances will count for pension purposes with the new CDC scheme.

Robert, I am in the DC scheme & pay % on my Basic (pensionable) pay. If i did overtime the % would be higher.

The amount of pension contributions in money terms would be higher, but the percentage should be the same!

Are you saying there is a difference in the new CDC scheme. As you stated "Only basic pay .... will count" as opposed to pensionable pay!

All the literature says that pensionable pay with CDC will be based on basic pay and pensionable allowances. That doesn't sound as if it includes OT.

The way I understand things from the info we've been given, is that those currently in section A/B of the RMPP will see no difference in their pension contributions.
But those in sections C & F will no longer have the Lower Earnings Deduction taken away from their wages, and so will pay a higher amount each week.

Those in the RMDCP will have any allowances that are pensionable for RMPP members included in their pensionable where they aren't at the moment. So RMDCP members may see an increase on one hand because of that, but a decrease with the other because OT(up to full time hours) will not be included.

[rogersh]

Robert, I am in the DC scheme & pay % on my Basic (pensionable) pay. If i did overtime the % would be higher.

The amount of pension contributions in money terms would be higher, but the percentage should be the same!

Robert, Sorry I did not phrase my first sentence very well, you are right about the % being the same, The same % applied to overtime, giving the higher contributions as you say.
Thanks for clarifying the other point.

[tractorboy2]

Don't forget if you do happen to do any overtime, anything up to 37 hrs a week will count towards the current (whatever that is!) scheme, at least I think it will.........Robert.

Any OT up to full time hours is pensionable for those in the RMDCP, but I don't think it applies to those in the DBCBS, although I could be wrong?

I'd be interested in that answer too.......my view is that treating additional hrs for PT staff up to FT hrs differently than standard hrs for FT staff would be discriminatory as FT and PT T&C's should be the same.

I think I'm right in saying that any OT done by part timers is at the normal hourly rate up to full time hours and then changes to OT rate.
I'm sure someone more knowledgable will correct me if I'm wrong.

You are correct.

[Hicksville]

I’m toying with the idea of PT three day week.
I’ve contacted Capita and RMPP and they both said I wouldn’t loose what I’ve already accrued.
Any future payments would change if I go PT as in pro-rata.

Regarding the future, would my pension only be pro-rata or are there any hidden “penalties”
Thanks