Pension deduction

[Bonehead]

Only me

Is the pension deduction the same rate for drivers for all TOC's or are they company dependant?
What is the deduction percentage, anyone know? Are there tiers or is it a standard rate?

Ta very much

 

[Simon11]

Only me

Is the pension deduction the same rate for drivers for all TOC's or are they company dependant?
What is the deduction percentage, anyone know? Are there tiers or is it a standard rate?

Ta very much

Each toc has their own pension scheme and some schemes may ask for a higher percentage if they are short of money to pay future pensions.

 

[Lanc688]

Only me

Is the pension deduction the same rate for drivers for all TOC's or are they company dependant?
What is the deduction percentage, anyone know? Are there tiers or is it a standard rate?

Ta very much

They all appear to be different !

TPE deduction is approx 10 % and this is of course before tax which is a brucy bonus. That is 10% of representative pay, which I believe is your gross pay minus 1.5 times the state pension amount (prob about ten grand or thereabouts).
Therefore if you were on 40 k gross your annual pension deduction would be 10% of 30 K ie 3 K (this is the way I believe it works).

Of course, different TOCs have different rates at which this will be matched. Of note with final salary pensions (not many if these left) is that in 2017 when the NI deduction rules change, these schemes will be more costly for TOCs to run due to higher NI contribution rates that they will be forced to pay, therefore I see a change at that time.

Caveat...I'm not qualified to give financial advice....just giving you the info I have to hand.

Regards
Lanc

 

[snail]

TPE deduction is approx 10 %

Ouch. My (non-railway) contribution has recently increased from 3.5% to 4.7% and I thought that was high!

 

[Lanc688]

Ouch. My (non-railway) contribution has recently increased from 3.5% to 4.7% and I thought that was high!

Not bad if the company matches 1.5 times though...that's circa 10 k into a plan each year once qualified.

Lanc

 

[PeteH]

FGW deduct 7% of basic pay - overtime does not count towards the pension. No idea what the company provides but I think the FSP accrues at 1/60 per annum, so 20 years will give 1/3 of the final salary as a pension, circa £15K at today's rate. I believe there is a lump sum of 3 x the annual pension too.

 

[TDK]

ATW deduct 8.4% of your pensionable pay (basic) for drivers

 

[Bonehead]

The toc's I'm thinking about are Virgin and London midland. I've heard of something called SMART pension but it means nowt to me...
Anyone?

 

[The North Briton]

SMART pensions is a creative wheeze whereby an amount equal to your pension contribution is deducted from your gross pay (instead of net pay). The effect of this is that you don't pay National Insurance contributions on the amount.

 

[TDK]

SMART pensions is a creative wheeze whereby an amount equal to your pension contribution is deducted from your gross pay (instead of net pay). The effect of this is that you don't pay National Insurance contributions on the amount.

And nor do the company saving them a lot of money