Part-time earnings

Recently, we’ve received an increase in contact from employers regarding how days excluded are shown on a member print for part-time members.

We’d like to remind you that, days excluded are a value of unpaid days within the Scheme. If a member is part-time, their days excluded will automatically be calculated based on the annual full-time salary and actual part-time earnings figures you provide in your monthly submissions. You’re required to assess their contribution tier each pay period based on their annualised applicable pensionable pay.

Days excluded will need to be recorded on your monthly submissions for part-time members where there’re no earnings in a specific period, therefore all days in the period are excluded (i.e. £0 earnings in March would be recorded as 31 days excluded).

If you’re submitting via Monthly Data Collection (MDC) and the member is in concurrent service (i.e. has two or more part-time posts) we’d advise you to use the concurrent calculator and input the different full-time and part-time earnings on each post. This will show the full-time salary to use, and the days excluded to populate – you’ll also need to input £1 in the part time earnings field to indicate that it’s concurrent service.

For employers submitting via Monthly Contribution Reconciliation (MCR) you’ll need to use days excluded for part-time members who are in a period of non-pensionable service for either occupational sick or family leave. Please refer to our MCR guidance notes for further information.

We’ve produced an example below to help you further understand the process:

The calculation used to determine the reckonable days is:

(Part-time Earnings X 365) / Annual Full Time Equivalent (FTE) Salary = Reckonable service

Days in Period – Reckonable Service = Days Excluded

For example:

If a member has an annual full-time salary of £36,500, and in June they earn £2,000, to work out their reckonable days you would perform this calculation:

(£2,000 x 365) / £36,500 = 20 reckonable days

June has 30 days – 20 reckonable days = 10 days excluded

If a member had a 0.8 contract, for five years, you’d expect to see roughly four years reckonable service and therefore approximately one year of days excluded (depending on the exact figures provided, and any other factors like extra/less hours worked).

If you need further help, please contact us (This link opens in a new window).

Last Updated: 31/10/2024 13:39