A imposed pay deal, or just a pension contribution increase? Confusing

Post by **stephen500** » 04 Apr 2020, 11:45

Have we just had an imposed pay deal, the message at the bottom of our latest pay slip is confusing, well for me any way.
"pensionable pay and contributions for applicable members will increase by up to 2.4% on 1st April 2020 (Sept 2019 RPI increase)."
Is this just a pension contribution increase or a pay rise as well?

Post by **rogersh** » 04 Apr 2020, 15:56

You will probably get a comprehensive response from Robert T if you post this in the RM Pensions news forum.

A brief search I found the following info;

What are employee contribution increases?
Why will my pension contributions increase?
The average 60 year old is now living ten years longer than they did in the 1970s. This has resulted in increases in the costs of pensions and until now these
have all fallen to the employer. The extra pension contributions mean there will be a fairer distribution of the added cost between employers and the scheme members.

Dindin · Post by **Dindin** » 04 Apr 2020, 16:06

I can assure you that is not a 2.4% pay rise

Post by **stephen500** » 04 Apr 2020, 21:33

rogersh wrote:You will probably get a comprehensive response from Robert T if you post this in the RM Pensions news forum.

A brief search I found the following info;

What are employee contribution increases?
Why will my pension contributions increase?
The average 60 year old is now living ten years longer than they did in the 1970s. This has resulted in increases in the costs of pensions and until now these
have all fallen to the employer. The extra pension contributions mean there will be a fairer distribution of the added cost between employers and the scheme members.

I will just be happy if they pay my pension on time in Nov

renrag40 · Post by **renrag40** » 16 Jun 2020, 02:35

Pensionable pay and your actual pay started to diverge from 2014. Pensionable pay has increased by RPI for Section A, B and C members since then. At the time, the thinking was that it would be either a cost saving measure or would reduce RMs pension liability as wages usually outstrip inflation. However, due to the fact that the pay rises since then have not actually kept pace with inflation it is actually costing RM more....... hahahaha...... thereby possibly proving that there is a God after all!