NHS payrise and pension

[PolarTundra]

Hi there, first payday today since the NHS 'payrise' which has been backdated to April, very happy to have a few hundred extra in my pay this month.
However - my pension contributions have gone up over 3% this month bumping from 9.3 to 12.5%.
I've just put my new pay into a salary calculator (I'm top of band 8a) and next month I will be taking home over £100 less than before the payrise kicked in, because it will be swallowed up by pension. This is before the NI rise kicks in!
Is this right? Does anyone know if the pension bands will increase at any time now that pay has gone up?
I know I'm lucky to be earning a good salary and I'm sure I'll be happy with my pension when I'm 80 but right now, with mammoth childcare fees and cost of living going up this is really going to be a squeeze 😔

Ask if you can pay in installments instead,
do it quickly though

@bookish83

I didnt realise you paid contributions on full time wages? Is this a good thing long term for pro rata staff?

OP I would be in shock too with that. I can see why the deductions have been taken but to suddenly have that in one go! I would not have that money spare either

Thats exactly it they deduct as if you worked full time. But I dont so to be paying this amount each month on a part time salary is crippling. I cannot opt out, its a good pension and I can retire in 15.5 years at 60 but how am I meant to get through this month nearly £600 down? I was awake at 3am and checked my bank and nearly had a heart attack, so now Ive been awake since 3am with a 15 hour shift ahead of me. I could fucking weep.

Oh god so maybe it's not do with maternity arrears then? That is ridiculous I know exactly how you feel @TangoWhiskyAlphaTango with 2 young kids in nursery I can't afford to be losing 20% of my pay to pension, we need that money now! Will see what payroll say but I imagine they may be a bit busy if this has happened to lots of people.

@MrsLargeEmbodied

staff have been advised to contact payroll asap so that the pension contributions can be paid in installments

Thank you I haven't seen anything about this but would have definitely opted for it to be spread out.

I just can't fathom how I've been pushed into the next bracket even at full time my salary is still 2k less than the 12.5%. I spoke with pensions last month and he was a right arsehole so I don't fancy ringing them today. I've cried all the way to work I'm so cross. Why no warning?!

I've just checked my pay on the back of this thread and it's less than I'd expect. This is one of the issues with top of band 8a in particular - you actually get less take home than staying one point below. I've been paying the 12.5% for ages though? Not London.

I have heard that they're considering making pension payments pro rata though... I currently lose almost 50% of my gross to deductions.

Same for me too - feel really deflated 🥲

My payroll team emailed the day before payday warning me and said they would take it back over 6 months. I contacted them to check it was definitely correct (which unfortunately it was) and they have agreed to take it over 11 months which softens the blow.
They were very helpful - definitely contact your payroll team - you can pay it back in instalments - they shouldn’t have just taken it out in one go!

my trust said they themselves had no warning

@Misty9

I've just checked my pay on the back of this thread and it's less than I'd expect. This is one of the issues with top of band 8a in particular - you actually get less take home than staying one point below. I've been paying the 12.5% for ages though? Not London.

I have heard that they're considering making pension payments pro rata though... I currently lose almost 50% of my gross to deductions.

But I'm only top 7 I just don't understand how I've been pushed up to 12.5% I do overtime but that's not regular so I don't see how they can use that. I'm furious.

I've only just started paying the 12.5% - figured out its probably due to my salary sacrifice car.

So sorry this has happened to lots of you too. I'm not in work today but going to log in and check I didn't miss an email, and contact payroll to see if there are any more arrears due because I just can't afford to lose this much money!

I just spotted that there's a consultation on changes to the scheme which you guys may want to read and respond to:

www.gov.uk/government/consultations/nhs-pension-scheme-proposed-changes-to-member-contributions/nhs-pension-scheme-proposed-changes-to-member-contributions-from-1-april-2022

I haven't finished reading it yet!

@PolarTundra

Another fun pay update - this month they took the 12.5% plus another £400 in 'pension arrears ' leaving me about £400 worse off than I was before the payrise I have been back from maternity leave since March so not sure why I am suddenly having to pay back such a large chunk but I will be phoning the payroll team today to find out how much arrears I owe them and why I wasn't given any warning of this that's 20% of my pay just taken on pension this month!!

The arrears will be the pension you didn’t pay whilst on mat leave.

I checked with payroll and the arrears is backdated to April 2022 from the 'payrise' start date. No more due but no apologies for the lack of warning before leaving me £400 short

@bookish83

I didnt realise you paid contributions on full time wages? Is this a good thing long term for pro rata staff?

OP I would be in shock too with that. I can see why the deductions have been taken but to suddenly have that in one go! I would not have that money spare either

From April 2023 this is changing; pro rata staff will only pay on their pro rata pay.

Spoke to pensions and payroll no chance of instalments so basically £600 down. Merry fucking Xmas kids 😭😭😭😭

I really hope you all don’t get another nasty surprise from HMRC about breaching your annual allowance and a huge tax bill to pay!

@ForensicAccountant

I really hope you all don’t get another nasty surprise from HMRC about breaching your annual allowance and a huge tax bill to pay!

What do you mean?

@PressingTeams

Thanks, that is good to know. I of course want to max out my pension contributions but I just never knew this. I am going to check my payslip forensically this month!

@ForensicAccountant

I really hope you all don’t get another nasty surprise from HMRC about breaching your annual allowance and a huge tax bill to pay!

Don’t think any NHS staff member on AFC could breach that.

I can't believe I didn't know part time workers contribution level is based on full time pay. What bullshit is this?? So for the last 3 years my pension has cost me more than it has for full time workers who would get the same pension value. What fantastic indirect discrimination! Going to have a good old rant about this to anyone who'll listen in work this week (all men who work full time, who likely won't give a fuck).

I haven't been caught out by this arrears issue thankfully, so sorry to those who have 😢 what an absolute shit show. They should have spread it over several months as the default option, that's what they do after mat leave isn't it so the systems should be able to cope with that no problem.

@SpamIAm

I can't believe I didn't know part time workers contribution level is based on full time pay. What bullshit is this?? So for the last 3 years my pension has cost me more than it has for full time workers who would get the same pension value. What fantastic indirect discrimination! Going to have a good old rant about this to anyone who'll listen in work this week (all men who work full time, who likely won't give a fuck).

I haven't been caught out by this arrears issue thankfully, so sorry to those who have 😢 what an absolute shit show. They should have spread it over several months as the default option, that's what they do after mat leave isn't it so the systems should be able to cope with that no problem.

No. It’s the same percentage applied against your reduced pay. Your pension will be proportional.

You’re paying the same rate for the same pension benefits.

I’m not sure it can be fair to pay less for the same?

Can someone explain the part time pension thing please? Is it that someone part time actually pays a full time contribution, and will receive a full time pension? Or is it something else? Thanks!

I have just checked my payslip, I am top of band 8a. My pension has only gone up by about £25 a month.

I have London weighing though and I think that my pension increases to 12.5% a few years ago.

I’m a band 4 and I’ve been moved over to 9.3%

Even though I don’t earn full time the 26.8k it starts at. Top 4 is not even £25K. I’ve been on leave so haven’t had chance to contact pay roll. But assume there’s something that takes me over but I don’t earn that much in enhancements!

I also have to pay back the pension arrears but monthly. So with that and the national insurance rise il be worse off. I get the perks of the pension but I feel with living costs/inflation rising the pension bands should change. I’m paying the same percentage as someone earning 40K.

I’m sure this has affected even lower bands too.

Don't get paid till the 28th . I'm nervous now. Took a beating to the bank balance last month and was wrongly optimistic