Lower Earnings Deduction

Post by **yorkmover123** » 01 Mar 2018, 03:46

Lower Earnings Deduction for Pension C section what is the benefits to my pension having LED if someone can explain in more detail please.

Post by **RobertT** » 01 Mar 2018, 12:14

There are no benefits! It’s an amount that gets taken off your basic pay plus allowances, to make your pensionable pay.

Post by **yorkmover123** » 01 Mar 2018, 12:23

thank you for your reply

ForumTiger · Post by **ForumTiger** » 02 Jun 2018, 09:34

Is it a percentage of my pay, if so what %? I'm a part time employee with varying overtime, so my pensionable pay varies from week to week.
Thank you.

Post by **rogersh** » 02 Jun 2018, 16:12

From an earlier post by Robert T. The LED is quoted as being £3,753 .

I think he would be more qualified to answer your question in detail.

Post by **RobertT** » 03 Jun 2018, 16:39

ForumTiger wrote:Is it a percentage of my pay, if so what %? I'm a part time employee with varying overtime, so my pensionable pay varies from week to week.
Thank you.

Which RM pension scheme are you in?

If you're in the RMDCP or section B of the RMPP, then the LED is not taken into account when working out your pensionable pay.

If you're in section C or section F(those that opted out of the RMDCP and into the DBCBS) of the RMPP, then I believe your actual hours up to 39(full time) are used to work out your pensionable pay, rather than just your contracted hours. So anything less than 39 hours and the LED is worked out on a pro rata basis.

According to the literature we received about the recent pension changes, the LED has risen to £3,753.

If in doubt, contact the pension service centre, details on the plan website.

Post by **milly** » 13 Mar 2019, 10:14

RobertT wrote:
ForumTiger wrote:Is it a percentage of my pay, if so what %? I'm a part time employee with varying overtime, so my pensionable pay varies from week to week.
Thank you.
Which RM pension scheme are you in?

If you're in the RMDCP or section B of the RMPP, then the LED is not taken into account when working out your pensionable pay.

If you're in section C or section F(those that opted out of the RMDCP and into the DBCBS) of the RMPP, then I believe your actual hours up to 39(full time) are used to work out your pensionable pay, rather than just your contracted hours. So anything less than 39 hours and the LED is worked out on a pro rata basis.

According to the literature we received about the recent pension changes, the LED has risen to £3,753.

If in doubt, contact the pension service centre, details on the plan website.

Could you help me please Robert T?
I am an Ex-PHG and I joined the RMDCP in April 2018 so I receive a 10% contribution from Royal Mail which is £43.44,now it was my understanding that my £20 ex PHG supplement plus my shift allowance of £25.10 was fully pensionable which ought to give me a contribution of around £47 per week.
I phoned HR and they said the contribution is correct because of the lower earnings deduction but I am sure the lower earnings deduction does not apply to the RMDCP.

Post by **RobertT** » 13 Mar 2019, 11:10

milly wrote:Could you help me please Robert T?
I am an Ex-PHG and I joined the RMDCP in April 2018 so I receive a 10% contribution from Royal Mail which is £43.44,now it was my understanding that my £20 ex PHG supplement plus my shift allowance of £25.10 was fully pensionable which ought to give me a contribution of around £47 per week.
I phoned HR and they said the contribution is correct because of the lower earnings deduction but I am sure the lower earnings deduction does not apply to the RMDCP.

It's got nothing to do with the LED.
If you're in the RMDCP, only basic pay is pensionable. Or if your part time & in the RMDCP any OT up to 38 hours should also be pensionable.

See the plan guide for details: https://www.zurich.co.uk/internet/works ... WD0900.pdf" onclick="window.open(this.href);return false;

Post by **milly** » 13 Mar 2019, 11:24

RobertT wrote:
milly wrote:Could you help me please Robert T?
I am an Ex-PHG and I joined the RMDCP in April 2018 so I receive a 10% contribution from Royal Mail which is £43.44,now it was my understanding that my £20 ex PHG supplement plus my shift allowance of £25.10 was fully pensionable which ought to give me a contribution of around £47 per week.
I phoned HR and they said the contribution is correct because of the lower earnings deduction but I am sure the lower earnings deduction does not apply to the RMDCP.
It's got nothing to do with the LED.
If you're in the RMDCP, only basic pay is pensionable. Or if your part time & in the RMDCP any OT up to 38 hours should also be pensionable.

See the plan guide for details: https://www.zurich.co.uk/internet/works ... WD0900.pdf" onclick="window.open(this.href);return false;

Thank you Robert T.
So I have lost my pensionable allowances by joining the RMDCP?

Post by **RobertT** » 13 Mar 2019, 12:25

milly wrote:Thank you Robert T.
So I have lost my pensionable allowances by joining the RMDCP?

You should still be getting the allowances as far as I know, but they're not pensionable if you're a member of the RMDCP.

Post by **milly** » 13 Mar 2019, 13:58

RobertT wrote:
milly wrote:Thank you Robert T.
So I have lost my pensionable allowances by joining the RMDCP?
You should still be getting the allowances as far as I know, but they're not pensionable if you're a member of the RMDCP.

Yes I still get them but they are no longer pensionable.

Post by **RobertT** » 13 Mar 2019, 14:08

Yes that's how it should be!

Here's the definition of RMDCP pensionable pay in the plan guide:

Pensionable Pay – means your basic salary or wage (excluding overtime, bonuses or any other items) if you are employed on a full time contract.
If you are contracted to work less than full time it means:
• your basic salary or wage for your contractual hours,
plus
• the salary or wage that you earn for non-contractual hours worked each pay period (which is a week if you are a weekly-paid employee and a month if you are a monthly-paid employee). Earnings for hours of work that are in excess of the number of hours normally scheduled for someone working full time in your role
will not be counted for the purpose of Pensionable Pay. Bonuses and other items will not be counted for the purpose of Pensionable Pay.

So in your case everything is how it should be.