CARE calculation of pensionable pay in LGPS Annual Pension Benefit Statement

SarahB16

Hello, I am looking for your opinions please regarding whether my LGPS 2023 annual pension benefit statement that I have just received is correct.  I think it is but would be grateful if you could kindly double check this for me please. 

As way of background I was on long term sick for part of the year from 1st April 2022 to 31st March 2023 whilst I was recovering from major surgery and having follow up treatment and my take home pay was reduced to 50% for some months and this will likely account for the two different pensionable pay amounts that I see being used on the annual pension benefit statement. 

On calculating my pay and membership benefits up to 31 March 2014 my pensionable pay has been used as if I had been in work the whole time (i.e. not had sick leave), i.e. my full time gross salary with no reductions.  

For the CARE pensionable pay (i.e. post 2014) from 1 April 2022 to 31 March 2023 a lower amount has been used (by c.£7,000 lower) due because my gross pay for some months was reduced by 50% whilst on sick leave.  I just want to check when calculating the benefits earnt under CARE this is the correct calculation. 

I hope I’ve explained myself clearly enough but if not please let me know if you need more information.  I also understand for the pre-2014 element it is slightly irrelevant as it's based on my final salary and I'm still over 10 years away from retiring but for the CARE element it will make a difference as 1/49th of the year's salary will go towards my pension and ideally of course it would be better if it was calculated without the deductions.  

As I mention above I think they are probably correct in deducting it but thought I'd check. 

Thank you very much for your help.

 

hyubh

SarahB16 said:

Hello, I am looking for your opinions please regarding whether my LGPS 2023 annual pension benefit statement that I have just received is correct.  I think it is but would be grateful if you could kindly double check this for me please. 

As way of background I was on long term sick for part of the year from 1st April 2022 to 31st March 2023 whilst I was recovering from major surgery and having follow up treatment and my take home pay was reduced to 50% for some months and this will likely account for the two different pensionable pay amounts that I see being used on the annual pension benefit statement.

In short - no it does not likely account for the difference. Pensionable pay for final salary benefits is whole time equivalent in principle. For the CARE part, query your employer why it appears no Assumed Pensionable Pay (APP) figure was provided to the pension team (https://www.lgpsmember.org/your-pension/paying-in/if-you-are-away-from-work/assumed-pensionable-pay/).

SarahB16

hyubh said:

SarahB16 said:

Hello, I am looking for your opinions please regarding whether my LGPS 2023 annual pension benefit statement that I have just received is correct.  I think it is but would be grateful if you could kindly double check this for me please. 

As way of background I was on long term sick for part of the year from 1st April 2022 to 31st March 2023 whilst I was recovering from major surgery and having follow up treatment and my take home pay was reduced to 50% for some months and this will likely account for the two different pensionable pay amounts that I see being used on the annual pension benefit statement.

In short - no it does not likely account for the difference. Pensionable pay for final salary benefits is whole time equivalent in principle. For the CARE part, query your employer why it appears no Assumed Pensionable Pay (APP) figure was provided to the pension team (https://www.lgpsmember.org/your-pension/paying-in/if-you-are-away-from-work/assumed-pensionable-pay/).

Thank you so very much and yes I'm taking it up with my employer.

SarahB16

My employer has got back to me today but was unsure if I would receive an updated annual statement. Surely I am entitled to an updated annual statement which reflects the correct CARE salary?  I don't think my request is unreasonable?  

Could anybody provide an opinion please? 

hyubh

SarahB16 said:

My employer has got back to me today but was unsure if I would receive an updated annual statement. Surely I am entitled to an updated annual statement which reflects the correct CARE salary?  I don't think my request is unreasonable?  

Could anybody provide an opinion please? 

Has your employer confirmed payroll has provided a corrected pensionable pay figure to the pension team...? If so, ask the pension team for a revised ABS following their receipt of the new data.

SarahB16

hyubh said:

SarahB16 said:

My employer has got back to me today but was unsure if I would receive an updated annual statement. Surely I am entitled to an updated annual statement which reflects the correct CARE salary?  I don't think my request is unreasonable?  

Could anybody provide an opinion please? 

Has your employer confirmed payroll has provided a corrected pensionable pay figure to the pension team...? If so, ask the pension team for a revised ABS following their receipt of the new data.

  

Yes, I will ask the pension team directly for a revised ABS following their receipt of the new data.  I just wanted to check this was a perfectly reasonable request and thank you for confirming it is.  

SarahB16

I have been waiting for my employer to provide me with the details of the salary that they have sent to my LGPS pension provider and my employer has provided me with the correct salary information today.  

My second request to my employer was me saying that I would require a revised ABS and my employer said the following, 'When speaking to Westminster they said it was unlikely they could provide a new annual statement but could provide an estimate based on the new figures which I am happy to request for you.'  

I think what I will do is reply to my employer and request my pension forecast as detailed in section 2 and in section 4.c. of the ABS.  

When I have this I will still contact Hampshire (pension admin for my LGPS Westminster scheme) directly to see what they say regarding providing me with a revised ABS.  

I will save the information that I receive from my employer and working on the assumption that I do not receive a revised ABS and because the CARE scheme is cumulative I will be able to check next year what they have as my accrued pension to date and that should be 1/49 x the revised salary higher and if it is not correct then I believe I have six years to query it and I will make sure I review it very closely next year.  

I know the revised ABS is the best option and I will request that but I appreciate that may possibly take some time but I will contact my pension admin provider (Hampshire) but would you say the second best option to receiving a revised ABS is instead to obtain the information contained in sections 2 and 4.c of the ABS?  

Thank you very much in advance for your help.  

hyubh

SarahB16 said:

I have been waiting for my employer to provide me with the details of the salary that they have sent to my LGPS pension provider and my employer has provided me with the correct salary information today.  

My second request to my employer was me saying that I would require a revised ABS and my employer said the following, 'When speaking to Westminster they said it was unlikely they could provide a new annual statement but could provide an estimate based on the new figures which I am happy to request for you.'  

I think what I will do is reply to my employer and request my pension forecast as detailed in section 2 and in section 4.c. of the ABS.  

When I have this I will still contact Hampshire (pension admin for my LGPS Westminster scheme) directly to see what they say regarding providing me with a revised ABS.  

I will save the information that I receive from my employer and working on the assumption that I do not receive a revised ABS and because the CARE scheme is cumulative I will be able to check next year what they have as my accrued pension to date and that should be 1/49 x the revised salary higher and if it is not correct then I believe I have six years to query it and I will make sure I review it very closely next year.  

I know the revised ABS is the best option and I will request that but I appreciate that may possibly take some time but I will contact my pension admin provider (Hampshire) but would you say the second best option to receiving a revised ABS is instead to obtain the information contained in sections 2 and 4.c of the ABS?  

Thank you very much in advance for your help.  

Chasing your employer or WCC for new ABS sounds a waste of time to me - just ask the pension team (i.e. Hants Pension Services) directly to produce a revised ABS, after briefly explaining the reason (viz., you have had to chase your employer to provide them with corrected pay data). Assuming the corrected data is on their system, it should be a couple of clicks.