Back pay / pension calculation

[rks]

Just wondering if one collected. Nra60 pension recently, and pay rise and back pay is going to b eback dated to April 2020, does that mean ones recent pension payout will be recalculated based on the pay rise awarded to back dated April 2020 including lump sums paid?

[RobertT]

No!

Your pension was worked out based on taking it on a certain date and will increase with inflation each April, in line with either CPI or RPI(depending on which section you're in) the previous September.

Pension increases while in employment were de-linked from pay in 2014, they have been increasing with inflation rather than pay, since then. Apart for certain circumstances such as a promotion.

[stephen500]

No!

Your pension was worked out based on taking it on a certain date and will increase with inflation each April, in line with either CPI or RPI(depending on which section you're in) the previous September.

Pension increases while in employment were de-linked from pay in 2014, they have been increasing with inflation rather than pay, since then. Apart for certain circumstances such as a promotion.

But what about the Defined benefit cash balance scheme which is 19.6% of your salary? Surely if your salary increases, through a pay deal, then the cash balance you would have earned must have gone up at well. My cash balance for a whole year is £5900 and for the seven months till Nov was £3441. So if pay increases does that mean that I should get back pay added to the cash balance. Ie if we got a pay rise of say 1% would that mean I was owed £34 !. Not that it's worth really typing this up for, but just a thought.

[RobertT]

Do you keep your old payslips?

If so, look at the last one from tax year 2019/20(week 52). In the messages window on mine it says (I'm in section C):

Pensionable pay and contributions for applicable members will increase by up to 2.4% on 1st April 2020(Sept 2019 RPI increase).

So in practice there is 19.6% of 'pensionable pay' going into the DBCBS. But pensionable pay isn't necessarily the same as actual pay.
The amount that's pensionable is the 'pensions contrib. pay' figure on your payslip.

You can argue that those who've left the business since 1st April 2020 should be entitled to some sort of back pay or extra DBCBS cash. But unless it's in the agreement between RM and the CWU, then you won't get any.
I'd be very surprised if it is!

[stephen500]

Do you keep your old payslips?

If so, look at the last one from tax year 2019/20(week 52). In the messages window on mine it says (I'm in section C):

Pensionable pay and contributions for applicable members will increase by up to 2.4% on 1st April 2020(Sept 2019 RPI increase).

So in practice there is 19.6% of 'pensionable pay' going into the DBCBS. But pensionable pay isn't necessarily the same as actual pay.
The amount that's pensionable is the 'pensions contrib. pay' figure on your payslip.

You can argue that those who've left the business since 1st April 2020 should be entitled to some sort of back pay or extra DBCBS cash. But unless it's in the agreement between RM and the CWU, then you won't get any.
I'd be very surprised if it is!

I won't sweat over £34. Some normal back pay would be nice.

[rambo1]

Do you keep your old payslips?

If so, look at the last one from tax year 2019/20(week 52). In the messages window on mine it says (I'm in section C):

Pensionable pay and contributions for applicable members will increase by up to 2.4% on 1st April 2020(Sept 2019 RPI increase).

So in practice there is 19.6% of 'pensionable pay' going into the DBCBS. But pensionable pay isn't necessarily the same as actual pay.
The amount that's pensionable is the 'pensions contrib. pay' figure on your payslip.

You can argue that those who've left the business since 1st April 2020 should be entitled to some sort of back pay or extra DBCBS cash. But unless it's in the agreement between RM and the CWU, then you won't get any.
I'd be very surprised if it is!

Another way of royal mail saving money by dragging out pay negotiation for ten months.

[RobertT]

Another way of royal mail saving money by dragging out pay negotiation for ten months.

10 months ago RM didn't want to give us a pay rise at all!