pse and pension help ?

[iawnski]

so i have a pension from the po,i am in the pse ,before the pse i was paying into a pension now looks like im not ,is this how it works

[TrueBlueTerrier]

so i have a pension from the po,i am in the pse ,before the pse i was paying into a pension now looks like im not ,is this how it works

Yes - RM are paying you slightly less, so you pay less tax and NI but end up with a few pounds more take home pay. RM pay yours and their contributions so you don't lose on your pension. RM did send some stuff about it, and we have threads on here explaining it.

[RobertT]

so i have a pension from the po,i am in the pse ,before the pse i was paying into a pension now looks like im not ,is this how it works

Let’s say your gross pay is £500 per week. Before PSE was introduced RM would pay you the £500 and then various deductions would be taken off like Income Tax, NICS, pension, etc.

Under PSE, you still earn £500 but RM effectively pay your pension contribution before they pay you. So if you pay £20 into your pension the amount of your earnings assessed for NIC’s is now £480.
As employers also have to pay NIC’s on how much their workers earn, both ours and RM’s contributions are lower.

Pension contributions aren’t taxable, so there is no saving on Income Tax – just NICS.

If you didn’t read your PSE guide, you can look at it here: http://www.myroyalmail.com/sites/defaul ... %20WEB.pdf" onclick="window.open(this.href);return false;

[iawnski]

so i have a pension from the po,i am in the pse ,before the pse i was paying into a pension now looks like im not ,is this how it works

Yes - RM are paying you slightly less, so you pay less tax and NI but end up with a few pounds more take home pay. RM pay yours and their contributions so you don't lose on your pension. RM did send some stuff about it, and we have threads on here explaining it.

thank you for the advise

[iawnski]

so i have a pension from the po,i am in the pse ,before the pse i was paying into a pension now looks like im not ,is this how it works

Let’s say your gross pay is £500 per week. Before PSE was introduced RM would pay you the £500 and then various deductions would be taken off like Income Tax, NICS, pension, etc.

Under PSE, you still earn £500 but RM effectively pay your pension contribution before they pay you. So if you pay £20 into your pension the amount of your earnings assessed for NIC’s is now £480.
As employers also have to pay NIC’s on how much their workers earn, both ours and RM’s contributions are lower.

Pension contributions aren’t taxable, so there is no saving on Income Tax – just NICS.

If you didn’t read your PSE guide, you can look at it here: http://www.myroyalmail.com/sites/defaul ... %20WEB.pdf" onclick="window.open(this.href);return false;

thank you for this advise

[Postie501]

I was a bit concerned about this PSE as no one adequately explained how it worked.Seemed to me that we would lose out on the State Pension in the long run.

But after reading your link, Section 9 suggests any State Pension loss will be minimal.Hope this proves to be the case.

Cheers.