Civil Service Pension Forecast Query

Bulberino

I have submitted a query to MyCSP but they are currently taking months to reply, wondered if anyone here might know the answer. My Annual Benefit Statement shows my classic pension to be worth £406 less than it was last year when my P60 and Earnings as at end of March both show increases as would be expected due to a pay rise. My pensionable earnings is showing as having decreased by £209. Could this be to do with the higher rate of tax? Earnings to the end of March 25 were £50174 inc London allowance.

Isthisforreal99

Tax has no bearing on your pensionable pay.

Have you had higher earnings in any of the previous 3 or 4 years, a temporary promotion for example.

Generally speaking your Classic pension is based on your pensionable earnings over a 12 month period covering the previous 3 years (slightly complicated by the 91 day step back rule).

Bulberino

Thanks, no not at all, there was no change between 2021 and 2022 which they said was due to a one year pay freeze. The Alpha element shows an increase of £1125 and I am one of the members who will get choice at retirement following McCloud. The earning as at end of March figure shows a small increase each year until 24/25 when it dips. There is an in-year reward scheme but thats not pensionable and I havent received one that would make any one year higher.

Isthisforreal99

So to be clear, under 'Your Classic Benefits' is the figure for 'Your earnings on 31 March 2025' less than that shown on your 2024 ABS?

And how does that March 2025 figure compare to your gross salary at that time?

m_c_s

If your total permanent earnings to the end of March 25 were more than in 2024 and 2023 then the ABS could be wrong. Or it could be your employer amended the previous year's pensionable pay and notified MyCSP. 
Typically Civil Service pensions are calculated on pensionable pay which is based on permanent elements including your basic salary, certain allowances, and any other regular payments specified as pensionable by your employer.
Non-permanent (or non-contractual) elements of pay are often excluded so this can include payments like overtime, bonus payments (unless specified as pensionable), and allowances intended to cover special expenses.
London allowance is included in your pensionable pay so it won't be that.
Go through your last 3 years of pay (note any overtime or other non-permanent) and if they increase one after another then check the last 3 ABS's to make sure the correct pensionable salary has been used. Errors by employers notifying of incorrect pay have been known as well as MyCSP admin errors.

MyCSP probably have a 4 months or so delay responding to non-critical questions like yours (assuming you are not wanting to claim your pension in the next 4 months).

Bulberino

Thanks, so the figures are:

                P60              Pensionable Earnings        Earnings as at 31 Mar              Classic Pension       Lump Sum
23/24       £47823.08    £47935                               £48671                                     £18906                    £56720
24/25       £47939.76    £47626                               £50174                                     £18500                    £55502

The reason for the P60 figure for 24/25 only being just over £100 higher is due to a in-year pay award of £1500 which is taxed and not pensionable, so I can only think the pensionable earnings figure for 23/24 or 24/25 is not correct.

ClashCityRocker1

On your ABS what wage figure was used in each alpha calculation?

Isthisforreal99

Your P60 figures are irrelevant. The reality is your pensionable earnings apparently have went down in 24/25 compared to 23/24.....but why? Does the pensionable earnings of £47,626 match your payslips?

Ultimately it's kind of academic and I would personally wait and see what 25/26 ABS brings.

m_c_s

Your payslip (not P60) for March 2024 and March 2025 should show your final annual pensionable pay for those years. That figure is what is essentially sent to MyCSP by your employer.  
It looks like there was a non-permanent element to your earnings in 24/25 which does not count towards your pensionable pay namely £50174-£47626 =£2,548.00.

hugheskevi

m_c_s said:

Your payslip (not P60) for March 2024 and March 2025 should show your final annual pensionable pay for those years. That figure is what is essentially sent to MyCSP by your employer.  

That is correct, but it is simply pensionable earnings as at 31st March that is used to calculate the classic pension figure on the ABS, not the year-to-date figure.

Bulberino

Isthisforreal99 said:

Your P60 figures are irrelevant. The reality is your pensionable earnings apparently have went down in 24/25 compared to 23/24.....but why? Does the pensionable earnings of £47,626 match your payslips?

Ultimately it's kind of academic and I would personally wait and see what 25/26 ABS brings.

Thanks - yes I just included that to show that it shows a rise. I have just checked against end of March payslips for both Mar 24 and for Mar 25 it is £50174 so the pensionable earnings figure in the statement is definitely wrong