AVC's to become redundant?

[milly]

The NMW rises to £11.44 an hour in April and our hourly rate will be around £13.65 an hour from April after our payrise.
Please correct me if I'm wrong but won't that take everyone out of PSE if you pay into an AVC and even if you don't?

[yellowbelly]

The NMW rises to £11.44 an hour in April and our hourly rate will be around £13.65 an hour from April after our payrise.
Please correct me if I'm wrong but won't that take everyone out of PSE if you pay into an AVC and even if you don't?

No, depends out how much you pay into AVC's for a start, is it a percentage or fixed amount and what other salary
exchange benefit deductions are being made.

Some people may have to correct the amount they are currently paying if they are near the limit.

For example someone earning a reasonable/shedload of OT but is just paying a fixed £ AVC amount is probably not going to
be kicked out of PSE.

PSE protections

We have designed PSE so that as many
colleagues can benefit as possible. However,
because of how certain legislation works, some
employees could be financially disadvantaged if
they take part. To make sure this doesn’t happen,
some colleagues will continue to pay pension
contributions as they do now.

These are employees:
l whose post-PSE pay will be below the PSE
participation limit (currently £10,000 a year,

around £192 a week if you are paid weekly or
around £833 a month if you are paid monthly);

who would be brought below the National
Minimum Wage by taking part in PSE and
any other salary-exchange arrangements, for
example childcare vouchers;

l on Statutory Sick Pay with no extra payments
from us; or
l on unpaid leave, for example, a career break
or seconded to another employer and paid on
another payroll system.

[heapsy]

All you have to do is reduce your Flexi plan payments to stay within PSE. Still worth contributing, as we still have no idea when the new scheme will start.

[milly]

The NMW rises to £11.44 an hour in April and our hourly rate will be around £13.65 an hour from April after our payrise.
Please correct me if I'm wrong but won't that take everyone out of PSE if you pay into an AVC and even if you don't?

No, depends out how much you pay into AVC's for a start, is it a percentage or fixed amount and what other salary
exchange benefit deductions are being made.

Some people may have to correct the amount they are currently paying if they are near the limit.

For example someone earning a reasonable/shedload of OT but is just paying a fixed £ AVC amount is probably not going to
be kicked out of PSE.

PSE protections

We have designed PSE so that as many
colleagues can benefit as possible. However,
because of how certain legislation works, some
employees could be financially disadvantaged if
they take part. To make sure this doesn’t happen,
some colleagues will continue to pay pension
contributions as they do now.

These are employees:
l whose post-PSE pay will be below the PSE
participation limit (currently £10,000 a year,

around £192 a week if you are paid weekly or
around £833 a month if you are paid monthly);

who would be brought below the National
Minimum Wage by taking part in PSE and
any other salary-exchange arrangements, for
example childcare vouchers;

l on Statutory Sick Pay with no extra payments
from us; or
l on unpaid leave, for example, a career break
or seconded to another employer and paid on
another payroll system.

I thought PSE was based on your basic pay?

[yellowbelly]

The NMW rises to £11.44 an hour in April and our hourly rate will be around £13.65 an hour from April after our payrise.
Please correct me if I'm wrong but won't that take everyone out of PSE if you pay into an AVC and even if you don't?

No, depends out how much you pay into AVC's for a start, is it a percentage or fixed amount and what other salary
exchange benefit deductions are being made.

Some people may have to correct the amount they are currently paying if they are near the limit.

For example someone earning a reasonable/shedload of OT but is just paying a fixed £ AVC amount is probably not going to
be kicked out of PSE.

PSE protections

We have designed PSE so that as many
colleagues can benefit as possible. However,
because of how certain legislation works, some
employees could be financially disadvantaged if
they take part. To make sure this doesn’t happen,
some colleagues will continue to pay pension
contributions as they do now.

These are employees:
l whose post-PSE pay will be below the PSE
participation limit (currently £10,000 a year,

around £192 a week if you are paid weekly or
around £833 a month if you are paid monthly);

who would be brought below the National
Minimum Wage by taking part in PSE and
any other salary-exchange arrangements, for
example childcare vouchers;

l on Statutory Sick Pay with no extra payments
from us; or
l on unpaid leave, for example, a career break
or seconded to another employer and paid on
another payroll system.

I thought PSE was based on your basic pay?

Well it's a starting point for qualification (see above) but I'm a PT'er and I pay a percentage AVC for which the £ value goes up/down accordingly to the amount of OT I might have worked and they let us pay some of the recent lump sum pay rise into AVC's. So if it's based on basic pay someone's made an almighty cock up.

[milly]

The NMW rises to £11.44 an hour in April and our hourly rate will be around £13.65 an hour from April after our payrise.
Please correct me if I'm wrong but won't that take everyone out of PSE if you pay into an AVC and even if you don't?

No, depends out how much you pay into AVC's for a start, is it a percentage or fixed amount and what other salary
exchange benefit deductions are being made.

Some people may have to correct the amount they are currently paying if they are near the limit.

For example someone earning a reasonable/shedload of OT but is just paying a fixed £ AVC amount is probably not going to
be kicked out of PSE.

PSE protections

We have designed PSE so that as many
colleagues can benefit as possible. However,
because of how certain legislation works, some
employees could be financially disadvantaged if
they take part. To make sure this doesn’t happen,
some colleagues will continue to pay pension
contributions as they do now.

These are employees:
l whose post-PSE pay will be below the PSE
participation limit (currently £10,000 a year,

around £192 a week if you are paid weekly or
around £833 a month if you are paid monthly);

who would be brought below the National
Minimum Wage by taking part in PSE and
any other salary-exchange arrangements, for
example childcare vouchers;

l on Statutory Sick Pay with no extra payments
from us; or
l on unpaid leave, for example, a career break
or seconded to another employer and paid on
another payroll system.

I thought PSE was based on your basic pay?

Well it's a starting point for qualification (see above) but I'm a PT'er and I pay a percentage AVC for which the £ value goes up/down accordingly to the amount of OT I might have worked and they let us pay some of the recent lump sum pay rise into AVC's. So if it's based on basic pay someone's made an almighty cock up.

My post was really aimed at full-timers.
If it is based on basic pay then almost every full-timer will be out of PSE by April, even if they don't have an Avc.

[heapsy]

It is based on basic pay. How will they fall out of PSE? As I posted earlier, people will have to adjust their AVC payments. They are not a fixed amount as you seem to infer.

[milly]

It is based on basic pay. How will they fall out of PSE? As I posted earlier, people will have to adjust their AVC payments. They are not a fixed amount as you seem to infer.

I thought once your Pension and Avc payments were deducted from your basic pay and it put your hourly rate under the NMW then you fell out of PSE.

[milly]

By my reckoning most full-timers avc contributions will shrink to around £50 a week by April to stay in PSE providing they don't use any other salary sacrifice scheme such as cycle to work etc.
If the NMW continues to go up quicker than our payrises then it will soon be redundant.

[heapsy]

It is based on basic pay. How will they fall out of PSE? As I posted earlier, people will have to adjust their AVC payments. They are not a fixed amount as you seem to infer.

I thought once your Pension and Avc payments were deducted from your basic pay and it put your hourly rate under the NMW then you fell out of PSE.

Only if you earn below the NMW per hour, after deductions.