Death in Service - LGPS - salary sacrifice

Random47

Quick question

Is it  your 'notational salary' (original gross before any deduction of SS) the figure for DIS payment (i.e. 3 x salary) or does SS affect it negatively (i.e. 3 x the SS gross)?

Bue21

My LGPS scheme bases benefits on the pre salary sacrifice figure for pension accrual and death in service etc.  However we were warned that things like maternity pay could be affected as these would be based on the reduced salary. I assume all lgps would be the same.

Random47

Bue21 said:

My LGPS scheme bases benefits on the pre salary sacrifice figure for pension accrual and death in service etc.  However we were warned that things like maternity pay could be affected as these would be based on the reduced salary. I assume all lgps would be the same.

Yeah my scheme does say the same about maternity etc. No comment on DIS though, as the pension contribution is on gross pre-SS pay and as life cover is bye product of the pension I suppose its safe to assume DIS based on 3x the gross of pre-SS

Lemon_dr1zzle

What are you salary sacrificing for? 

Random47

AVC is the salary sacrifice - likely 15K p.a. I already do a 6K car lease on SS so 21K x3 gets into serious territory on any DIS that is not based on notational salary but the SS level. 

Marcon

Random47 said:

Bue21 said:

My LGPS scheme bases benefits on the pre salary sacrifice figure for pension accrual and death in service etc.  However we were warned that things like maternity pay could be affected as these would be based on the reduced salary. I assume all lgps would be the same.

Yeah my scheme does say the same about maternity etc. No comment on DIS though, as the pension contribution is on gross pre-SS pay and as life cover is bye product of the pension I suppose its safe to assume DIS based on 3x the gross of pre-SS

Wouldn't it be even safer to check direct with your employer/scheme? Suppositions and assumptions have an unhappy habit of proving to be incorrect in a lot of cases.

Random47

Marcon said:

Random47 said:

Bue21 said:

My LGPS scheme bases benefits on the pre salary sacrifice figure for pension accrual and death in service etc.  However we were warned that things like maternity pay could be affected as these would be based on the reduced salary. I assume all lgps would be the same.

Yeah my scheme does say the same about maternity etc. No comment on DIS though, as the pension contribution is on gross pre-SS pay and as life cover is bye product of the pension I suppose its safe to assume DIS based on 3x the gross of pre-SS

Wouldn't it be even safer to check direct with your employer/scheme? Suppositions and assumptions have an unhappy habit of proving to be incorrect in a lot of cases.

I'm going too on Monday, just though perhaps all LGPS had same rules and could get answer over the weekend from forum member who had direct experience.

MX5huggy

The DIS is calculated as 3 times Pensionable Pay. Pensionable pay is your notional salary before Salary Sacrifice to AVC see your last LGPS for your pensionable pay in the last year they have figures for. 

I’m not quite sure about the Salary Sacrifice for a car it does reduce NHS pension. 

Silvertabby

MX5huggy said:

The DIS is calculated as 3 times Pensionable Pay. Pensionable pay is your notional salary before Salary Sacrifice to AVC see your last LGPS for your pensionable pay in the last year they have figures for. 

I’m not quite sure about the Salary Sacrifice for a car it does reduce NHS pension. 

Ditto LGPS.  Not only for DIS, but also for final salary calculations.

Random47

Silvertabby said:

MX5huggy said:

The DIS is calculated as 3 times Pensionable Pay. Pensionable pay is your notional salary before Salary Sacrifice to AVC see your last LGPS for your pensionable pay in the last year they have figures for. 

I’m not quite sure about the Salary Sacrifice for a car it does reduce NHS pension. 

Ditto LGPS.  Not only for DIS, but also for final salary calculations.

My pay check shows LGPS pension deduction cost (7.9%) is based on notational salary, so SS for lease car does not impact on DIS either. 

Lemon_dr1zzle

The attached shows what will remain pensionable for 2014 scheme