Final pensionable salary

Flu_strength_Darren

Can someone please explain why my pension isn't based on my full salary?

On my statement it lists my pensionable salary as £38.000, but my salary is mid forties?

We don't have anyone at work to ask for pension advice as it's administered by Aon, and no one in my team has an answer? No shift pay or bonus or overtime in salary so this isn't the reason.

dunstonh

It is normal for it to be based on a set criteria. Typically salary before bonuses, overtime etc. Your contributions to the scheme are also based on that too.

xylophone

Not all salary necessarily counts as pensionable - bonuses, overtime,certain allowances might be excluded.

What does your scheme booklet say?

brewerdave

Company car allowance??

Flu_strength_Darren

Salary is just that, annualised, no extras like car, bonus overtime etc.
Reading the back of the statement it's something to do with lower earnings limit??? But still don't understand it.
Booklet?? Lol it was well over a decade ago, long misplaced.

xylophone

it's something to do with lower earnings limit??

Like this? https://forums.moneysavingexpert.com/discussion/1869657

I joined my new employer's final salary pension scheme in March, upon entering this new employment. Now, reading the small print, there is statement which says that my pensionable pay (that on which the pension is based) is not my full salary, but the salary less the lower earnings limit, which is currently £4,665.

xylophone

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2016-to-2017

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2017-to-2018