NUVOS Pension Deductions

Bravo_Zulu

Bit of an odd one this but I am sure I am being deducted 7% rather than the 5% I should be.

I've queried it with HR and they've said my deductions are correct but that's simply not true. It says 5 in the rate of deduction box but the amount calculated to be deducted is 7. Has anyone else had this issue?

I'm concerned that the HR woman just looked at the number '5' and said it was right rather than looked closely at the actual figures. I've sent another query off to them but is there anything else I can do if they continue to say it's right?

hugheskevi

Bit of an odd one this but I am sure I am being deducted 7% rather than the 5% I should be.

You presumably earn £15-£21K full-time equivalent.

7% isn't one of the nuvos contribution rates. That makes it unlikely there is some sort of error putting you in the wrong contribution tier.

It says 5 in the rate of deduction box but the amount calculated to be deducted is 7. Has anyone else had this issue?

Precisely 7, or about 7?

I've seen similar payroll issues/errors. Sometimes despite the payslip being correct in every regard, the contribution rate multiplied by pensionable salary simply doesn't equal the amount deducted, for no reason (presumably a programming error somewhere in the system, although I struggle to envisage how it could have happened). But in those cases the differences were small - a matter of literally a few pounds and if a member queries them they are just refunded.

I've also seen cases where payroll carelessly lump in a retrospective adjustment with the regular monthly pension contribution, but don't make any mention of it, so although the deduction states the correct regular monthly deduction in words the amount shown is different as a percentage. Is there any reason you may have paid insufficient pension contributions at some point in the last few months (promotion, failure by payroll to take pension contributions, etc)?

is there anything else I can do if they continue to say it's right?

Set out all the figures and calculations yourself and ask them to explain where the discrepancy between your figures and their figures is. If you are not happy with the explanation ask for it to be escalated, making a formal complaint if necessary.

MoneySavingUser

It is true that payroll can make mistakes as hugheskevi says.

My employer deducted the right amount from my pay but told and sent the pension provider the wrong amount so it is definitely worth checking these things carefully.

Bravo_Zulu

Thanks for the replies, this is the email I've sent off to them:

I am on the NUVOS scheme and I know my contribution rate is 5%. I have checked what my deductions should be using the estimator tool on the Civil Service Pension Scheme website and done some fairly simple maths: I am struggling to see how the deductions I see on my pay slips are accurate.

For instance, this month (Tax month 09):
Payment total: £1437.67
NUVOS: £103.16

This works out as 7.17% not 5 and the Civil Service Pension Estimator says I should be deducted £72.

Interestingly, the back NUVOS on my £188 back pay is correct at 4.99% deduction.


My previous pay slip (Tax month 08) is the same:
Payment total: 1398
NUVOS: 102

This works out as an 7.3% deduction.

This is the same for all the payslips that I have to hand. Can you shed some light on why I'm making 7% pension contributions rather than the 5% I should be?

I've not missed any pension payments and yes, I earn between 15 & 21K. Have I missed something with my calculations?

NoMore

Are you basing your calculations on your gross pay or net? It should be done on your gross as it will be taken before tax.

Bravo_Zulu

All sums worked out from gross salary for exactly that reason

hugheskevi

My first guess would be do you work part-time? The rates are based on full-time equivalent, not actual salary. Although if that is the answer the pension contribution rate should not be showing as 5% so I doubt this is the answer.

My second guess would be have you for some reason had quite a significant reduction in earnings in the last year? The rates are fixed based on income at a particular point and only change in the event of a significant change (eg promotion) but perhaps if a change happened in your case it could have been missed.

Make sure you are using pensionable income for the calculation (rather than gross pay - you might have some non-pensionable income), but that won't be the answer given the differences you mention.

Can't think of anything beyond that, but having different earnings each month and back pay makes me think something about those things may hold the answer, but I can't envisage how because if they are itemising them separately they shouldn't have any impact on the regular monthly contribution.

Bravo_Zulu

Thanks for your input hugheskevi, I appreciate it. No, I've not had a drop in earnings - it's actually gone up slightly. I'm at a complete loss, I've spoken to one of my colleagues who's in the same job and on the same pay scale and he's paying bang on 5%.

It's just weird.

Bravo_Zulu

Just to update on this, I've had the response that my pay office has notified them of accommodation and food charges which are pensionable. So my pensionable salary isn't the same as my actual salary. Thing is, this isn't written anywhere that I can find and it seems wrong that I'm making pension contributions on a salary that I don't have.

Thoughts?

I have thrown this back at them and asked for a breakdown of these costs and a reference to the document that details the 'payment'.

hyubh

Bravo_Zulu wrote: »

Just to update on this, I've had the response that my pay office has notified them of accommodation and food charges which are pensionable. So my pensionable salary isn't the same as my actual salary. Thing is, this isn't written anywhere that I can find and it seems wrong that I'm making pension contributions on a salary that I don't have.

Thoughts?

It is not impossible for benefits in kind to be pensionable. In the Nuvos case the scheme booklet has this:

You may also have some non-cash pensionable pay. For example, some people’s pensions will take account of a uniform allowance, and others may have an allowance for accommodation. In these circumstances you and your employer will also pay contributions based on the equivalent cash value of this non-cash pensionable pay.

http://www.civilservice.gov.uk/wp-content/uploads/2012/06/NPS_1_V2.pdf

As Nuvos is a CARE scheme you will earn extra pension for this.

Bravo_Zulu

Thanks. I've never seen that booklet and I've also not had an annual statement of benefits... I shall be chasing both things up!