Your contributory pay is less than your actual pay because it is reduced by the Lower Earnings Deduction (LED), currently £3,328 a year, before calculating your pension contribution.
That explains why i worked it out as 5.04% then! Doing the math with updated figures shows 6% ... And now I understand what "Pensions Contrib. Pay" means in wage slip
So i pay in £20.81, and RM pay in £59.30 ( 17.1% ) ?
Im aware of the proposed changes next year, so thought best to take advantage while possible. I understand RM are proposing the 17.1% is unsustainable, so looking to provide either 7, 8, or 10% ( depending on wether you opt for a contribution of 4,5, or 6% ) ... I think i've understood this correct - that is, for the 'Defined Contribution Scheme' ( RMDCS ).
Alternatively, if opting for 'Defined Benefit Scheme' ( RMDBS? ) , RM will pay 13.6% ( instead of 17.1%? ) of pensionable pay.
I know these figures and proposals are open to change, but am i understanding this correctly at present?
Regarding 'Flexiplan' vs 'Bonusplan': Flexiplan seems simple enough, although i think i'm more attracted to Bonusplan.
If you work full time, you can pay in 4.5% of the first £3,328 of your annual salary. That’s around £150 a year.
However, it doesn't actually say how much RM will match...
If you earn less than around £15,300 a year, your employer will match what you pay in pound for pound. If you start earning more than this, your employer will carry on contributing, but not pound for pound. They’ll keep doing this until you start earning around £30,600 a year. These limits increase each year with inflation, so they will change over time.
Any insight on this? It isn't really clear.
Can't see them doing away with Flexiplan, though Bonusplan could be susceptible to change, and even if it were to be discontinued ( in its current form ) come March, then at least i have still taken advantage of the RM contributions... Something is better than nothing.
