Discrepancy in Pensionable pay figure NHS

nad1611

Hi All.
My OH has received the NHS Pension Benefit Award letter today. The best of his 3 years (1995 section) was the year leading up to his retirement date 5th July 2015.

We presumed that Pensions would calculate his Pension on the 365 days from his retirement date. However there seems to be a discrepancy between, the figure they have used for calculating as his pensionable pay and the figure we had which we took from his wage slips.

Are we missing something (Apart from the obvious thing of an error perhaps having been made in the figures sent to Pensions by his employer) could we have made a mistake? Are there things which don't count as pensionable pay, or should we literally take pensionable pay from exactly where it states "Pensionable Pay" on his wage slip?

He's drafted a letter to send them which we thought would be better in the long run than a phone call, but would really appreciate some help. It's the difference of £1600 in pensionable pay, which would obviously be better.

Many Thanks.

Just to add, it states in the letter that the Lump Sum is 3 x Pension, however none of the figures show a figure of 3 times? For example Pension=£11677.06 Lump sum =£25880.71?

hyubh

nad1611 wrote: »

However there seems to be a discrepancy between, the figure they have used for calculating as his pensionable pay and the figure we had which we took from his wage slips.

Could legitimately differ if date paid and date relate differ (e.g., a backdated payrise - the first month paid will include money that relates to some months prior).

Are there things which don't count as pensionable pay,

For sure, however...

or should we literally take pensionable pay from exactly where it states "Pensionable Pay" on his wage slip?

... one would hope the payslip software doesn't try and guess what to mark as pensionable and what not. Compiling the data for NHS Pensions may well be a manual process however, producing space for inconsistencies.

He's drafted a letter to send them which we thought would be better in the long run than a phone call, but would really appreciate some help. It's the difference of £1600 in pensionable pay, which would obviously be better.

A short, written or emailed enquiry asking for details of how the final pensionable pay figure would calculated sounds reasonable, yes.

nad1611

hyubh wrote: »

Could legitimately differ if date paid and date relate differ (e.g., a backdated payrise - the first month paid will include money that relates to some months prior).

Yes we factored this in, for example, we only counted the first relevant month as basic pay and didn't include the enhancements for the month before.

hyubh wrote: »

A short, written or emailed enquiry asking for details of how the final pensionable pay figure would calculated sounds reasonable, yes.

They did include a breakdown of the way they came up with the final pension sum, but it's the actual pensionable figure they worked with,which differs.

Thanks for your help.

xylophone

Any help here?
http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/How_to_Calculate_Total_Pensionable_Pay.pdf

http://www.nhsbsa.nhs.uk/Documents/Pensions/Choice_Factsheet_-_The_pay_used_to_work_out_your_pension_(V2)_02.14.pdf

Pensionable pay is defined here for the Scots....

http://www.sppa.gov.uk/index.php?option=com_content&view=article&id=641&Itemid=1383#fiveone

bigadaj

xylophone wrote: »

Any help here?
http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/How_to_Calculate_Total_Pensionable_Pay.pdf

http://www.nhsbsa.nhs.uk/Documents/Pensions/Choice_Factsheet_-_The_pay_used_to_work_out_your_pension_(V2)_02.14.pdf

Pensionable pay is defined here for the Scots....

http://www.sppa.gov.uk/index.php?option=com_content&view=article&id=641&Itemid=1383#fiveone

Careful with those links!

puddle96

Payroll have to give the pensions agency figures with 3 months notice of intent to claim pension. Try ignoring the last 3 months money and go back a year from then - see if the figures make more sense that way. Once the pension is in payment and the agency has the amount he earned in the last 3 months they will adjust his pension accordingly. I got random payments for about 2 years after claiming , some of my colleagues have not been so lucky and had to pay money back

nad1611

Thanks everyone. With regards to what constitutes pensionable pay, there doesn't seem to be a problem. He hasn't received anything which wouldn't be considered pensionable pay.

I will check the figures as you say Puddle96, because it could well make sense, as my OH went from days to working shifts in July 2014, so he went from basic to basic + shift enhancements. Those didn't really kick in until end of August.

System

Hi

"Are we missing something"

The usual thing is that the payroll / HR people give the Pensions Agency figures.

So by all means ask the employer what figures were submitted.

Pensionable pay usually excludes overtime and most enhancements. It is just Basic Pay.


Has their ever been, preferably recently, an Annual Benefit Statement from the pension provider?

nad1611

johndough wrote: »

Pensionable pay usually excludes overtime and most enhancements. It is just Basic Pay.

Hi. NHS Pensionable pay does include overtime as long as it doesn't exceed whole time hours. Shift enhancements are considered "pensionable pay" as long as they are paid on a regular basis and form part of the employees normal employment, which in this case it does/did.

johndough wrote: »

Has their ever been, preferably recently, an Annual Benefit Statement from the pension provider?

Unfortunately not, he asked for an estimate of his pension back in February, but after 13 weeks and repeatedly asking, they didn't provide one, at which point he needed to get his application in. So he wasn't ever sent any prediction or similar.

Puddle96.Have done a quick calculation as you suggested and it does come out nearer their figure if we go back from three months before.So the problem could indeed be, the point from which they have worked back 365 days.

We'll send a letter anyway and see what they say. Still don't understand the 3x pension though?:(

jem16

nad1611 wrote: »

Just to add, it states in the letter that the Lump Sum is 3 x Pension, however none of the figures show a figure of 3 times? For example Pension=£11677.06 Lump sum =£25880.71?

For the 1995 section it would be 3 times annual pension for the lump sum unless you choose to take more by commuting.

For the 2008 section there was no automatic lump sum.

Does he have mixed service?

nad1611

By mixed I guess you mean 2008/1995? If so then no, he worked from 1980 until now and stayed with the 1995 section, when offered the opportunity to change.


Hmmm better ask about the 3 x thing too then because that's definitely what they have written in the Award letter.