If you earn more than the upper earnings limit do you get no S2P contribution?

jamesd

If you earn more than the upper earnings limit do you get no S2P contribution for your whole salary that year? That is, not just for the portion above the limit, zero S2P for the year. Earn more than 33540 and get nothing at all in S2P contribution.

This particular question is the result of a call to the Future Pensions Centre. The answer there was "you get nothing if you earn more than the upper earnings limit".

I know what I think of this answer, but independent comment is good.

CIS

its a while since I dealt with S2P ( I used to work at future pension centre, before it was renamed)

S2P will be calculated on income up to the upper earnings level, income above that is not used.
If your contracted in, you'll accrue S2P on all the earnings up to the UEL, if your contracted out, its likely that your S2P will be reduced to zero or close to it.

Although COD doesnt exist as it did with SERPS, theirs still a contracted out offset in S2P which goes against any S2P you earn.

EdInvestor

"you get nothing if you earn more than the upper earnings limit".

The point is surely not that you get nothing, but that you get nothing extra on top of what you get at the upper earnings limit. :rolleyes:

jamesd

CIS, EdInvestor, thanks for confirming my thoughts on this. The person had to check and appparently misunderstood what they were told. The rest of the call was far more sensible.