LEL and Pensionable Pay

Post by **freespeech** » 02 Mar 2020, 13:54

Reading my statements I see both pensionable pay and CSDB pensionable pay are both reduced by the lower earnings limit. Googling suggests that the is £116 per week so around £6k per year. However, when I look at my P60 and take off £6k my pensionable pay is quite different. Should they be easy to reconcile?

Post by **RobertT** » 02 Mar 2020, 15:00

The Lower Earnings Limit is set by the government and is the amount you have to earn to qualify for certain state benefits such as the state pension, and is currently £118 per week.

RM's version of the LEL also known as the Lower Earnings Deduction(LED), used to be the same figure as the governments, but that link was removed by RM 20 years ago.

A more in depth explanation of pensionable pay and the effect the LED has on it, aswell as the pension supplement, can be found in the glossary section of the plan guide: https://www.royalmailpensionplan.co.uk/ ... ages_0.pdf" onclick="window.open(this.href);return false;

JKSmudge · Post by **JKSmudge** » 02 Mar 2020, 20:38

Hi Robert - you seeem to be in the know about these things, so wonder if you have the answers for me?
( and apologies for jumping on this post ).

I am in the RMDCS and recieved a form to fill in as I now qualify for the cash balance scheme.

I am 30 hour PT ( though usually do some OT each week ), currently pay 6% in with RM 10%.

Cash balance scheme has different definition of Pensionable pay with the LEL deducted, BUT apparently some allowances are pensionable....

I get RRIS & Del. Supp - do you know if these qualify ?

Thanks.

Post by **RobertT** » 03 Mar 2020, 13:58

This recent thread seems to suggest that one of the delivery supplement payments is pensionable. I haven't got a clue about RRIS to be honest.

As far as I'm aware, if you decide to join the DBCBS, only your basic contracted pay(30 hours) will be pensionable. Unlike the RMDCP which is basic plus any OT up to full time hours.

Can anyone confirm?

If you haven't already got a copy, the section F(for ex RMDCP members) plan guide is here.

Sorry I can't be of more help.

JKSmudge · Post by **JKSmudge** » 03 Mar 2020, 21:40

RobertT wrote:This recent thread seems to suggest that one of the delivery supplement payments is pensionable. I haven't got a clue about RRIS to be honest.

As far as I'm aware, if you decide to join the DBCBS, only your basic contracted pay(30 hours) will be pensionable. Unlike the RMDCP which is basic plus any OT up to full time hours.

Can anyone confirm?

If you haven't already got a copy, the section F(for ex RMDCP members) plan guide is here.

Sorry I can't be of more help.

Thanks Robert will take a look tomorrow.