P/T pension contrib. pay question

zzzidane · Post by **zzzidane** » 02 Nov 2018, 10:07

I’m a 30 hour p/t postman. My payslip reads as follows...

Payments
Basic Pay. 341.78
Delivery Sup. 19.86
PSE Adj (ex DC) DBCBS -17.10
Gross Pay 344.54

Deductions
Tax paid 22.80
Employee NIC 21.90
CWU Opt In 2.55
Total Deductions 47.29

Net Pay 297.29

So far all this seems ok but in the top right, the box saying Pensions Contrib. Pay 284.99.

My question is......why is only 284.99 of my pay, pensionable?? I don’t understand!!! Thank you in advance to anybody who can explain why this is!!!

heapsy · Post by **heapsy** » 02 Nov 2018, 14:35

If you started any time from 1st April 1988 to the present day then you will be a in section C of the pension scheme. There is a reduced contribution due to approximately £64 a week not being pensionable. It is called the Lower Earning Limit, or LEL for short. Most people still in the job are now in section C, that includes me. My Basic pay is £432.92, allowances are £15.41 and £9.74, but pensions contribution pay is only £375.72.

Post by **RobertT** » 02 Nov 2018, 14:53

zzzidane wrote:I’m a 30 hour p/t postman. My payslip reads as follows...

Payments
Basic Pay. 341.78
Delivery Sup. 19.86
PSE Adj (ex DC) DBCBS -17.10
Gross Pay 344.54

Deductions
Tax paid 22.80
Employee NIC 21.90
CWU Opt In 2.55
Total Deductions 47.29

Net Pay 297.29

So far all this seems ok but in the top right, the box saying Pensions Contrib. Pay 284.99.

My question is......why is only 284.99 of my pay, pensionable?? I don’t understand!!! Thank you in advance to anybody who can explain why this is!!!

I'm assuming (from this: PSE Adj (ex DC) DBCBS -17.10) you used to be in the DC pension scheme, have more than 5 years service and are now paying into the DBCBS?

If that is the case then you have the Lower Earnings Deduction taken off your pay before any pension contributions are made, which I believe is pro-rata for part timers.

All the info was included in the booklet you got earlier in the year. It is also available to view online here.

Post by **RobertT** » 02 Nov 2018, 14:59

heapsy wrote:If you started any time from 1st April 1988 to the present day then you will be a in section C of the pension scheme.

Section C actually began on 1st April 1987 and closed to new entrants on 31st March 2008. So anybody joining RM (or the pension) afterwards would be in the RMDCP, and any of those people reaching 5 years service from 1st April 2018 are being given the opportunity to join the DBCBS(section F of the RMPP).

heapsy · Post by **heapsy** » 02 Nov 2018, 20:58

Oops! Sorry, I actually meant 1987.

Post by **RobertT** » 04 Nov 2018, 08:30

heapsy wrote:If you started any time from 1st April 1987 to the present day then you will be a in section C of the pension scheme...... Most people still in the job are now in section C

I think there's about 140,000 posties in the UK.
Out of those around 83,000 are employee members of the RMG section of the RMPP, which closed to new members in 2008!
Most of which(around 95%) will be in section C.

The remaining 57,000 are either in the RMDCP, section F of the RMPP(ex RMDCP), already taken all of their pension and are still working for RM, or have opted out altogether.

So in reality about 55% of the current posties employed are in section C.

zzzidane · Post by **zzzidane** » 05 Nov 2018, 09:08

Thank you for the replies. Hopefully i’ve done the right thing by moving from the pension scheme i was in when i was first employed at RM, 5 or 6 years ago, to the one that i am in now!!!!