AVCs and new Minimum Wage increase

[YMM]

The recent increase in National Minimum Wage means that my current AVC level leaves my salary below NMW. Payroll are helpful but can't offer any 'advice'. Anyone got a clever spreadsheet?

[RobertT]

No spreadsheet but an easy formula is:

Basic hourly rate - minimum wage x basic hours = max AVC contribution

Also factor in any other PSE payments like P&M shares, etc.

[Schiff]

Remember that, from July, the National Insurance threshold is being raised to £12,570 so for some part-timers this may limit any benefit from using PSE for any purpose if it takes their remaing salary below that level as they won't be gaining the relief from NI.

[YMM]

Thanks!

[heapsy]

I'm currently paying £120.88 total. Full time and stayed withing PSE if that helps.

[StokieD]

I’m on 30 hours and I pay £85 AVC and it’s still within PSE (just).
But can anyone explain why in week 1 my £85 AVC and my 6% RMDCP appear in the left column as a - and a +, and then appear in the deductions column? It’s happened every year I’ve been paying AVCs and meant for week 1 that I overpaid NIC by nearly £15! Payroll just say it’s “a glitch in the system” and that I just have to put with it! Hardly a satisfactory explanation… It’s only £15 but I’ll never get that back, unlike if you overpay tax one week. My assessable pay shows as it should do (and the tax amount deducted is correct) but it just means I don’t benefit from PSE for that first week. Week 2 pay is all correct. Bizarre!

[Jaggs]

I'm currently paying £120.88 total. Full time and stayed withing PSE if that helps.

Which scheme are you in? I'm in the rmdcp and figured the highest I could pay was £106.54 so adjusted my contribution to that. I might have to increase it a little and see if I get taken out of PSE

[YMM]

I’m on 30 hours and I pay £85 AVC and it’s still within PSE (just).
But can anyone explain why in week 1 my £85 AVC and my 6% RMDCP appear in the left column as a - and a +, and then appear in the deductions column? It’s happened every year I’ve been paying AVCs and meant for week 1 that I overpaid NIC by nearly £15! Payroll just say it’s “a glitch in the system” and that I just have to put with it! Hardly a satisfactory explanation… It’s only £15 but I’ll never get that back, unlike if you overpay tax one week. My assessable pay shows as it should do (and the tax amount deducted is correct) but it just means I don’t benefit from PSE for that first week. Week 2 pay is all correct. Bizarre!

Yup, same thing happened to me as well!

[heapsy]

Happens every year. You get double the benefit of PSE the following week if you look at that payslip.

[StokieD]

Happens every year. You get double the benefit of PSE the following week if you look at that payslip.

My week 2 payslip was exactly as it should have been, nothing extra - don’t understand what you mean by double the benefit in week 2 ??

[heapsy]

My mistake. Sorry, I fell out of PSE on week 52 Check that week. Week 1 I came back in to PSE with arrears from the previous week paid back.

[paulus103]

I’m on 30 hours and I pay £85 AVC and it’s still within PSE (just).
But can anyone explain why in week 1 my £85 AVC and my 6% RMDCP appear in the left column as a - and a +, and then appear in the deductions column? It’s happened every year I’ve been paying AVCs and meant for week 1 that I overpaid NIC by nearly £15! Payroll just say it’s “a glitch in the system” and that I just have to put with it! Hardly a satisfactory explanation… It’s only £15 but I’ll never get that back, unlike if you overpay tax one week. My assessable pay shows as it should do (and the tax amount deducted is correct) but it just means I don’t benefit from PSE for that first week. Week 2 pay is all correct. Bizarre!

yeah it's annoying I thought it was just me but for me, it's week 2 - the payslip on week 1 has virtually zero stoppages but then in week 2 I get hammered. Then for week 3, it goes to normal.

[heapsy]

I'm currently paying £120.88 total. Full time and stayed withing PSE if that helps.

Which scheme are you in? I'm in the rmdcp and figured the highest I could pay was £106.54 so adjusted my contribution to that. I might have to increase it a little and see if I get taken out of PSE

Sorry mate I missed this. I'm in the RMPP. Started late 80s, but not in time to be a section B member, missed that by about 19 months.

[Jaggs]

I'm currently paying £120.88 total. Full time and stayed withing PSE if that helps.

Which scheme are you in? I'm in the rmdcp and figured the highest I could pay was £106.54 so adjusted my contribution to that. I might have to increase it a little and see if I get taken out of PSE

Sorry mate I missed this. I'm in the RMPP. Started late 80s, but not in time to be a section B member, missed that by about 19 months.

Thanks for replying. I'm guessing it's the different rates of pensionable pay between the schemes which means we have different amounts we can pay in while staying within PSE.

[heapsy]

The pension I joined was a watered down Final Salary pension, known as section C, formerly POPS. It was an attempt to keep the Final Salary scheme going. Didn't work in the long run and denied the new members a decent pension.