Offered a ps job. I can't figure out the pension contributions

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colin79ie

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Offered a role in the ps , coming from private employment. Although a significant pay cut, it's the quality of life I want as I'm in my early 40s and travel up to 150/160 days per year. The new role is a 40 min commute and home every night.

So, the role is AP grade, starting at 69,659.

Can someone tell me how much I'll be paying in pension contributions?. I can't figure it out, it's quite complex it seems.
I'm just trying to compare my net pay between the old job and proposed new job.

Also, assuming I stay in that grade till retirement, how much will my pension be?
 
Thanks. Yes, I did look through some of the material but found it complex .

I just want to make sure I'm right and don't get a shock on the first payslip...
 
Unfortunately, it is fairly complex, but all the information is on the SIngle Pension Scheme website. I can't post links, but you should be able to search for it and find the scheme booklet and the modeller spreadsheet to estimate future benefits.

Don't forget the Additional Superannuation Charge (ASC) deduction on top of the standard contributions too.
 
Pension contributions are: (3% of your gross salary) + (3.5% of your salary above 2x the sate pension) + (3.33% of your salary above 34,500).

The last of those is the ASC mentioned above. That's technically not a pension contribution but for practical considerations, it might as well be.
 
So I downloaded the estimator tool and finally got some sense out of it .

Based on the starting salary of AP grade of 69696 (for simplicity) the estimator gives the following;

Input. 3623 + 1189 (ASC) annually

Pension output,

Lump sum . 64167
Single scheme annual pension. 13,449
Contributory state pension . 12,956

Am I correct in saying the 2 annual pensions are added together to give just over 26k per year?
 
colin79ie said:
Am I correct in saying the 2 annual pensions are added together to give just over 26k per year?
Click to expand...
Yes. That looks about right.

You should use something more like the mid-point of the AP grade, or even the higher end as you will have annual incremental progression.

Also bear in mind that the pension will be adjusted in line with inflation. A typical annuity would not be.
 
Is there an automatic link to inflation, or is it linked to current CS salary levels, which have a theoretical link to inflation, though they haven't moved in close to 20 years?
 
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