To ask if any other nhs workers have heard they may end up WORSE OFF after the pay rise?.

[baconbuttieswithsauce]

My DH is in a flap. He found out today that due to an increase in pension contributions following his pay rise in September, he may end up with a negative sum and there owe his trust money. How can this be correct?? He's at the bottom of band 5 (it will affect band 3/5/8a apparently), and is due to moving up to the next pension threshold and due to workers being paid back pay from April. His Trust have mentioned helping staff with plans on how to pay money back that it owed
It makes no sense to me, but is obviously worrying, as this is not the time for us to have less coming in to the household,

Can anyone explain this to me?

I've heard of this, but I was only aware that it affected Band 8a. If he looks up his pay rise, and the change in his pension contributions, he'll be able to work out whether it will be an increase overall or not.

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Yes, as previous poster said I believe it only affects the first spine point of 8a (which I am). People have been getting letters in some trusts openly stating they will owe money after the "pay rise one off payment". It's due to the changes in pension contributions. Absolutely insulting but sadly not surprising. 😔

I had heard via a corridor conversation that would be 3,5 and 8A, but not seen anything official at my Trust or colleagues saying they had received notification.
Can see lots of unhappy staff.

He's not worse off per se but has to make more contributions to his pension. He could opt out of the pension scheme if it will cause hardship but this would have implications for his pension obviously.

Also the pension bands are likely to change soon anyway which will affect everyone

This has happened previously to staff in my experience with previous pay rises that have been back dated. It's fucking shameful, of course, but it is correct. HR should be able to advise him if this will be the case, and the amount.

So what will happen is he gets the backdated pay increase at the end of September. This applied from April and increases the % of pension contributions employees make. So the increased % cancels out the increased net income a,though of course the value of your pension increases. So very long term he's better off but doesn't feel like it! At the beginning of October the pension % and thresholds change again but I haven't worked out what that will mean yet.

Do NOT leave the scheme. It's bloody good and includes death in service benefit

If I’m reading it right, His pay is going to be £27055. Was he paying 7.1% before? With salary around £25800?

With the uplift he will go to 9.3% and then down to 8.8% in October. so he’s already paid £153 pcm in contributions. His shortfall for the six months will be 6 x (£210-153) = £342. The difference in take home pay is around £30 after the increased pension contribution. The pension contribution decreases his taxable income so I’m not sure as to the exact amounts but he might be entitled to £180 back pay.

it’s incredibly hard to muddle through!

He's not going to leave the pension scheme, that would be madness! It's just that
A - he have less take home pay after the pay rise which will benefit him in 30yrs but the cost of living crisis is happening now.

B - he may actually OWE money back on top of this due to backdated pension contributions. So his salary will be lower still as that money is taken out!

Oh this happened to me once as a grade 7 civil servant. It’s very annoying!

Why can't they just give you the backdated increase in salary minus the increased pension contributions, so what you get is what you are actually owed, without then owing them anything ?

My husband (GP) ended up leaving the pension scheme for a few months each year in order to manage pension and tax liability.

So backdated salary increase is £350, which is roughly what we have worked out we will get as top of band 5, backdated from April. Then take off the amount that is owed in pension contributions and give you £110 or whatever ?

Just to be clear that £350 is for the entire backdated period from April, not an increase in each monthly wage.

NHS employers link here, I’m affected too, the increase is from 1st October however there’ll be an adjustment from the generic £1400 uplift in salary to pay when the back pay is paid. www.nhsemployers.org/publications/nhs-pension-scheme-member-contributions

You will be better off by about £60 even taking into account the increased pension contributions. It’s just not as good as what it could have been I’m afraid.

I've done the calculator online which includes the new pensions - 8a, on the bottom rung another 2 years before I go up a pay point.

If the calculator is correct, I'll be £60 per month worse off than I am now and be getting about £70 less per month take home than the staff I manage on the top of band 7. But I'll need to wait and see in October as it's likely that September will be affected by back pay and the associated pension deductions.

I can see a mass exodus of my peers as it's not worth it for the extra pressure and extra clinical and budgetary responsibility that the band 7s don't have.

@Iliketeaagain that's so ridiculous. How did they end up with a situation like that?

The NHS is madness at the moment. In more ways than one. Blame Borris :)

@Iliketeaagain please can you link to the calculator? Thanks 🙏

Basically some on bands 3 5 and 8a get a pay rise that puts them over their current pension threashold. If the NHS actually gave pay rises on time, it would have applied since april 1st. But they don't sort out these things quickly. So basically they'll pay them backdated pay and then take out the contributions they should have paid since April from it.

This does potentially mean a few will get less pay in their september pay packet than their august one. Trusts are handling this individually some are offering to pay it in, in installments rather than a lump sum in September.

From October onwards they may see their pay rise slightly as pension threasholds will change. This will be espeically for part time staff who currently have their contributions based on full time equivalent pay.

It's annoying but its the requirement of the pension and standard practise in these circumstances. Similar to paying in more pension contributions when returning from matt leave. so basically like it or lump it.

I've opted out of the pension scheme for now. For me it's about surviving at the present time instead of worrying about a future that may never come

I completely agree - 8a doesn't look very attractive right now, it really isn't fair 🙁.

Have you spoken to your Trust and Union about any hardship funds that might be available? I'd definitely do that before leaving the NHS pension scheme.