Classic scheme: Pensionable Earnings

penwise

Hi

I recently got a pension forecast from civil service.

I noticed that my pensionable earnings was not the same as my salary.

The pensionable earnings is @7,000 more. I don't understand this. I never work overtime or have any additional money in my payslip exept my gross pay which when added up for the year is basically my salary?

Does anyone know why the possible difference?

Thanks

greenglide

Increase not aligned to the pension scheme year? The pensionable pay is normally set at a point in the year (1st April? ).

Non consolidated pay award?

penwise

Thanks for the reply.
No I have not had any pay awards. I will go over my old slips but as far as I am aware each month has been the same certainly nothing big enough to account for 7000.

Also they have me down as single and I am now married. Will this make a difference to the forecast amounts ? Thanks

Andy_L

Do you work part-time? Pensionable salary is the full time equivalent salary.

penwise

Thanks.
yes I have worked out the full time salary and that is around what I have been quoted for the 'salary' part but the 'pensionable earnings' are down as @7000 more than the full time salary

Your_Hero

penwise wrote: »

Also they have me down as single and I am now married. Will this make a difference to the forecast amounts ? Thanks

This will not make any difference.

What is the definition of pensionable earnings? Have a look at the scheme booklet.

penwise

Thanks for that - I was concerned that having been down as single might have had an impact on spouse protection.

The pensionable earnings is confusing as I don't get any perks or overtime and as far as I was concerned the only 'earnings' I have had was my basic salary.

Your_Hero

penwise wrote: »

Thanks for that - I was concerned that having been down as single might have had an impact on spouse protection.

You should let them know that you are married now though for the dependent's pension element. What I had meant was, being single or married wouldn't have caused the £7,000 difference in salary and pensionable earnings.

The pensionable earnings is confusing as I don't get any perks or overtime and as far as I was concerned the only 'earnings' I have had was my basic salary

Since you requested a "pension forecast", they may have projected your future salary, increased in line with inflation and/or other pay rises, until the scheme retirement age (60)?

BoxerfanUK

My pensionable earnings were approximately 2% higher than my actual salary, even though there were no other consolidated elements to pay and allowances. 7K more does seem a lot though!

xylophone

A pension forecast?


https://forums.moneysavingexpert.com/discussion/comment/66271276#Comment_66271276

From the above you are currently age 53 and plan to retire at 60.

Has the administrator estimated what your final pensionable salary is likely to be?

zagfles

penwise wrote: »

Thanks.
yes I have worked out the full time salary and that is around what I have been quoted for the 'salary' part but the 'pensionable earnings' are down as @7000 more than the full time salary

Does the pension dept have the right number of hours you work? Similar happened to someone I know - she'd increased her working hours from about 10 to 20, but the pensions dept weren't told, result was they thought she was still working 10 hours, they saw the pay increase because they see the % contribution, so it looked like her FTE (full time equivalent) pay was double what it in fact was!

Has your pensionable service increased by the right amount (compare last two annual statements)? Eg if you're part time and work half the full time hours, you should get half a year's pensionable service for every year.

This assumes the traditional final salary scheme, I think the new CARE scheme is different if you're in that - think that uses actual salary rather than FTE.