PCSPS Expert Needed

jamesperrett · 18 May 2017 at 8:45PM

I have a query that has arisen from a Classic scheme pension estimate that I've received. I have contacted the pension administrator who is looking into the issue but I was hoping that I might find an expert here who can give me a better understanding.

The final salary used in the pension estimate wasn't the one I expected. Over the last 3 years I have had a fluctuating income which means that the best year is very different to the worst year but the additional pensionable payments are spread out throughout the year. I am aware that 91 day steps are used in the final salary calculation.

My question is when should the payments be counted for final salary purposes? Is it when they are paid, when they are actually earned (which could be up to 3 months before they are paid) or some other time?

Thanks in advance for any light that can be shed on this.

Kynthia · 18 May 2017 at 11:24PM

Is the payment definitely pensionable, as some aren't, and is it an annual allowance or something ad hoc like overtime? If ad hoc then is there a date associated with the payments on the payroll system as if the only date on the payroll system is the date paid then I believe that's the only date MyCSP will have.

From memory the final pensionable pay used in Classic is the best 12 month stretch of pensionable earnings, in the final 3 years, calculated in quarterly intervals. Then each of these 12 month amounts are indexed up to the value at the last day of service (or at some standard point near then) using the pensions index which allows the best one to be selected.

Often it's the indexation that means a different 12 months was used to what people where expecting, as I think MyCSP give the unindexed figure on the paperwork even though they use the figure indexed up in the calculations (unless claiming the pension before 55). So this figure can appear to be lower than the member's best 12 months according to their records.

jamesperrett · 19 May 2017 at 12:09AM

Kynthia wrote: »

Is the payment definitely pensionable, as some aren't, and is it an annual allowance or something ad hoc like overtime? If ad hoc then is there a date associated with the payments on the payroll system as if the only date on the payroll system is the date paid then I believe that's the only date MyCSP will have.

Thanks for the quick response.

Yes, this is overtime and another similar allowance. There's no dispute about the amount of pensionable earnings - just the timing. They have all the correct payroll dates but appear to be making an assumption about when the money was earned which means that not all the payments are counted in the best period. If they used the payroll date or even the actual dates when the money was earned then it would be fine - all the payments would be included (albeit using different 12 month periods).

I'm just trying to find out whether assuming that the money is earned in the month before the month in which it is paid is normal procedure.

Kynthia · 19 May 2017 at 12:51AM

MyCSP use 'allowance' for annual figures like London weighting, and 'bonus' for ad hoc or one off amounts like overtime or deputising. Just so you know in case there's any confusion.

I believe the data they hold is from monthly data uploads from your employer's payroll system so I'm guessing tgey are using what that says. Perhaps it holds the date a form was received requesting you be paid this bonus? They can only change it if the employer tells them information that overides it. So if you aren't happy then say you wish to escalate a query and insist they go back to your employers to check the dates. Will your employer's HR hold the correct dates to give them or can you provide them proof?

jamesperrett · 19 May 2017 at 9:39AM

Yes, they are using the payroll information at the moment. I have copies of the forms that were submitted to claim the allowances which show all the dates so, if I don't get any further with current enquiries, would it be worth submitting those?

Kynthia · 19 May 2017 at 11:47PM

I'd escalate your query and see if they'll accept your evidence. If not they will go to your employer and then your employer will either provide what information they hold, or they may accept your evidence to pass on.

PCSPS Expert Needed

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