Answer:

The member's basic contractual salary in the pay period should be used to determine their contribution band. The basic contractual salary doesn't include overtime or excess service.

Answer:

Contributions are based on actual pensionable earnings paid in the pay period.  If a teacher is paid £3,000 in a monthly pay period, their annual salary rate will be £36,000, which is in the 8.6% contribution tier.

Monthly Contribution £3,000 x 8.6% = £258.00

Answer:

No, the method of calculating the FTE has not changed.

Answer:

Back-dated pay increases are treated as pensionable earnings in the month they’re paid but are not included when deriving the annual rate of salary to determine the contribution tier. The contribution rate is applied against all pensionable earnings – salary and any back-dated pay increase.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

Any salary earned within a calendar month will determine the contribution rate to be applied for that month. You need to derive the annual salary rate to determine the contribution tier and apply the rate to the pensionable earnings in the pay period.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

If a member has a salary increase from the start of the pay period then there is no change to the method of annualising the amount paid in the pay period. 

Answer:

This should be determined in the same way as a member who is starting or leaving mid-month.

Answer:

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

If an employee is unhappy about the contribution band that you’ve allocated them to they should discuss this with you and if they remain unhappy with your explanation, they should follow your internal disputes procedure.

Answer:

Where supply teachers are paid in April for work completed in March, the contribution tiers to use are those in place when the employee is paid.

Answer:

Any salary earned within a calendar month will determine the contribution rate to be applied for that month. You need to derive the annual salary rate to determine the contribution tier and apply the rate to the pensionable earnings in the pay period.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

You need to derive the pay period annual salary rate for each employment, do not add the salaries together and average them. You should determine the appropriate contribution band to each contract and apply it to the respective pensionable earnings in the pay period.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

In these circumstances you would derive the annual salary rate based on the employees usual earnings before the period reduced pay – as long as the leave is still pensionable service. Contributions are then deducted at that rate, but against actual earnings paid in the pay period.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

If the member has a mid-month salary increase, the contribution tier is still determined by what the member is paid in the pay period, as set out in the following example:

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

Derive the annual salary rate based on the employee’s actual earnings in the pay period.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).

Answer:

If the member leaves mid-month then base the contribution tier on their earnings in that month.

For examples read our Tiered Contributions Factsheet (PDF, 72 KB) (This link opens in a new window).