Pricey LGPS

m0bov

Can anyone help. I used to work for a private company, about getting about £32k a year. I did'nt pay the voluntary pension, only had employer contribution. So monthly was >£2210< after taxes.

With my new job, I am LG, so on the LGPS, my annual is £36k and my new monthly is >£2081<. I noted the LGPS contribution is quite high. However my monthly £2842 is before tax does'nt seem to add up to the £36k annual. Have I got my sums wrong or is this pension costing me £5k a year! With a promotion I was expecting a pay rise! :mad:

k6chris

m0bov wrote: »

Can anyone help. I used to work for a private company, about getting about £32k a year. I did'nt pay the voluntary pension, only had employer contribution. So monthly was >£2210< after taxes.

With my new job, I am LG, so on the LGPS, my annual is £36k and my new monthly is >£2081<. I noted the LGPS contribution is quite high. However my monthly £2842 is before tax does'nt seem to add up to the £36k annual. Have I got my sums wrong or is this pension costing me £5k a year! With a promotion I was expecting a pay rise! :mad:

How is it broken down on your payslip?

Silvertabby

LGPS employer contributions on a salary of £36K are 6.5%, so £2,340 per year (£1,872 after tax relief).

£2,842 per month does indeed = £34,104 per year. Are you definitely on £36K, or were you started on a lower incremental level with the promise of an increase once you had passed your probationary period?

Plus, as you have just started your new job, does your payroll have your correct tax code to work from - or are they using an emergency code?

m0bov

Hi all, thanks for the quick replies, much appreciated.

I have deductions as 322 for PAYE, 254.85 for NI and 184.78 for LGP. So Gross is £2842.75 and Net is 2081.12.

My starting sal is def £35,991, it will go up after 1 year on the scale.

I am on probation but at 1 year it should jump but for now its def as above!

m0bov

Tax code is 1256L M1

Seabee42

Of note the LGPS is not expensive at 6.5% employee contribution quite the opposite.

m0bov

Seabee42 wrote: »

Of note the LGPS is not expensive at 6.5% employee contribution quite the opposite.

Yes, this is what a thought, I used to have LGPS long ago so wondered if it had jumped! But if my pay is wrong then it could explain it, plus I was not doing voluntary under my old employment.

Silvertabby

Your LGPS contribution is before tax relief, which is correct. Your tax and NI look ok. Your gross £2842.75 is your taxable income after your pension contributions have been deducted, so that looks ok too.

So, we're down to why you appear to have taken a drop in take home pay despite a £4K a year pay rise (and after accounting for pension contributions. Did you get any extras or regular overtime in your old job?

BoGoF

When did you start new job?

What was your tax code in previous job?

When did you leave old job?

BoGoF

After some number crunching I don't think you are being paid £35,991 per annum.....or the figure of £2842.75 is not a full months pay.

I have managed to reconcile the figures and your gross pay before pension is £2842.75. Your taxable pay after pension contributions of £184.78 is £2658. Tax code of 1256L on £2658 gives the tax and NIC figures you quoted.

m0bov

BoGoF wrote: »

When did you start new job?

What was your tax code in previous job?

When did you leave old job?

Started 23rd April, old Tax was 1191L, left on 19/4. Sorry that code is from Feb 2019.