1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

New Pension contributions Query.

Discussion in 'Pay and conditions' started by sciencedude1980, Feb 27, 2012.

  1. sciencedude1980

    sciencedude1980 New commenter

    First of all, apologies if this is a repeat topic but I could not see one similar when I looked.
    Having just checked where i fit into the new pension contributions on the site linked below,
    I have to say that I am still a little confused. I understand that the percentage contribution is split into brackets but it appears (and I have "done the Math" as the Americans say) that it is the percentage of your total salary, unlike income tax in which you only pay the inceased rate on what you earn in that particular bracket.
    This means that if you are on UPS2 with a meagre TLR, you earn just shy of £40k and pay 7.6% contributions. When you move to UPS3 and earn slightly over £40k you will pay 8.0% on your total salary.
    In the extremest of cases...
    So, £39999 x 7.6% = £3039.92 = £253.32 per month
    or, £40001 x 8.0% = £3200.08 = £266.67 per month
    Giving a pay cut of £160 per year for nothing!
    I will be in a similar situation the next time my pay increases, albeit not as severe!
    I am quite sure that I have understood the site but it doesn't appear to be a fair system (why start now?), especially looking at the above example.
    Anybody else have any more information?

  2. sciencedude1980

    sciencedude1980 New commenter

    ...and by "extremest", I meant "extremist"!
    ...and by "extremist", I meant "most extreme"!!!

Share This Page