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.