Looking into Pension Contributions ...

[Spedley]

I've been looking into the contributions we and RM current make. 6% and 17% are the figures banded around but these have large foot notes attached which are never mentioned - even on your pay slip it says "Pensions Contrib. Pay" with an asterix for the non-existent footnote.

My Basic Pay is £412.30 as a full time OPG but only £346.78 is pensionable - I don't know why? Supplements and overtime are non-pensionable so RM save money every time they pay you like that instead of in your basic wage.

Here are a few figures highlighting the fact my pension was only paid on 64% of my last pay packet (red figures have changed from actual payslip)

It is interesting to see that if RM used 100% basic pay they'd only be paying about 13% and if O/T were included it would cut their payments further - but we'd be taking the hit from the extra pensionable pay.

[k979aaa]

National Insurance Lower earnings limit it the same for all of us It's called NICS on your P60 tax form.

[k979aaa]

here it is https://www.gov.uk/government/publicati ... tributions" onclick="window.open(this.href);return false;

[RobertT]

The ‘pension contrib. pay’ is something that baffles me to be honest, but there is a thread on here that explains it to some extent: https://www.royalmailchat.co.uk/communi ... 27&t=70490" onclick="window.open(this.href);return false;
But a chunk of the difference between the two figures is the Lower Earnings Deduction of £3,328 which section C members have taken off their pay before pension contributions are made.

Section A/B members and those in the RM Defined Contribution scheme don’t have the LED taken off.

Pension payments made by both employee & employer are made on basic pay and some allowances only(minus the LED for section C). If you want to pay a higher amount to take OT into account, it’s up to you to pay AVC’s.

The reference that K979aaa makes is not relevant, because the National Insurance threshold(what we earn before we are assessed for NIC’s purposes) is actually £113 per week or £5,876 per year. RM actually froze the LED as far as our pensions are concerned back in 1999 or 2000 I think

[Spedley]

Ah yes. Not sure where you get £3328 from I can only find £5876 (Which happens to be the same as NI)

http://www.thepensionsregulator.gov.uk/ ... shold.aspx

[fly-catchers]

The reference that K979aaa makes is not relevant, because the National Insurance threshold(what we earn before we are assessed for NIC’s purposes) is actually £113 per week or £5,876 per year. RM actually froze the LED as far as our pensions are concerned back in 1999 or 2000 I think

I recently found a 1999 booklet called "pensions growing stronger" which included the freezing of the LED. And the quote from Michael Duncombe Chief Executive Post Office Pension trustee "We are pleased The Post Office is able to make these improvements . This is one of those rare occasions where everybody wins and nobody loses" And yet just 9 years later or less things started to unravel...

[RobertT]

Ah yes. Not sure where you get £3328 from I can only find £5876 (Which happens to be the same as NI)

http://www.thepensionsregulator.gov.uk/ ... shold.aspx

The figure of £3,328 is specific to section C of the RM Pension Plan. See the plan guide for how it affects your pension: https://www.royalmailpensionplan.co.uk/ ... an/library" onclick="window.open(this.href);return false;

Back in 1999(I have now found the leaflet that fly-catchers refers to) RM froze the Lower Earnings Deduction or sometimes known as the Lower Earnings Limit at that amount. If they hadn’t done that, it would now stand at the government figure of £5,876. It had the effect of improving our pensions with every pay rise because a higher percentage of our pay would be pensionable.

The down side was that Bonusplan contributions were also frozen at £2.88 per week, as that is worked out as 4.5% of the LED.

[Dorset Plodder]

I must admit to being baffled by most of these Pension Calculation. However I fully believe that which ever way Royal Mail decide to work it out/pay it they are ALWAYS going to get the biggest slice of cake.

I've also read some articles, concerning the CWU Pension suggestions, that say the CWU's offer is too expensive/not feasible. So I'm still baffled. Although I'd always believe the CWU over RM Management I presume the CWU's offer is aimed at us getting the biggest slice of the cake? Whilst that would be nice I realise we've got to be practical and surely they can meet in the middle somewhere? Perhaps this is all just posturing and once we get a YES from the Strike Ballot it may concentrate some minds on the actual situation?