CDC employee Contribution query

[rogersh]

The 2018 Pension review Pamphlet Update February 2018 states in summary.

Contributions; Company contributions:13.6% of pensionable pay
*Member contributions: 6% of pensionable pay.

Also; Members have the option of contributing an extra 1% to the DBLSS. The company would match this contibution with a further 1%



The Booklet in November states;

2. Benefit Structure

The contributions into the CDC Section will be fixed at 15.2% of active members’ pensionable pay (“pp”),
of which 11.2% of pp is payable by RMG and *4.0% of pp is payable by the active member.


I am aware 2% is related to a death benefit – not sure if the employer or employee covers that?

*I am little confused with the employees contribution. Is it 4% or 6%.

[Woody Guthrie]

Is the DBLSS considered part of the "CDC Section"?

[RobertT]

Assuming no changes, overall contributions will be:

CDC:

RM – 11.2%
Employee – 4%

DBLSS:

RM- 2.4%
Employee – 2%

The RM currently pay 15.6% into the DBCBS of which 2% covers death benefits.
That extra 2% is not included in the CDC/DBLSS scheme, as the DBLSS will cover lump sum death benefits and insurance will cover ill health benefits.

The DBLSS will be managed separately and they'll be no cross subsidy between that and CDC. But the DBLSS is there to fund the tax free lump sum in a similar way to the DBCBS funds the NRA65 lump sum now.

[rogersh]

Robert. Thanks for the clarification.