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Author Topic: A dreaded pension question  (Read 8373 times)

Grifter

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Re: A dreaded pension question
« Reply #25 on: 07-07-17, 06:21PM »
What does it mean when you receive a letter saying they have taken you out of the SMART pension? It explains that it's because your earnings are not high enough to qualify, is this detrimental to my pension long term?

lightmyfire

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Re: A dreaded pension question
« Reply #26 on: 07-07-17, 07:31PM »
This happened  to me while on long term sick.once I returned  to work and received  full wages I was automatically  put back in....long term it will be detrimental  to pension cheers

HereWeGoAgain

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Re: A dreaded pension question
« Reply #27 on: 21-07-17, 12:33PM »
I had this letter today and not too happy about it. I opted to pay a certain amount for a reason don't want it only taken if it doesn't take me below living wage.

Welshie

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Re: A dreaded pension question
« Reply #28 on: 21-07-17, 12:43PM »
You are not removed from the pension,  They are now taking payments after tax as opposed to "smart pension" before tax . You are still in the pension .It's

Compromiseman

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Re: A dreaded pension question
« Reply #29 on: 31-08-19, 09:26AM »
SMART Pay pension....Hokey Cokey (Bonus month in....next month out)

Has anyone had issues with SMART pay pension where they are in the SMART pension when the bonus is paid, but then taken out the next month (letter received from Pension department)?

Welshie

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Re: A dreaded pension question
« Reply #30 on: 31-08-19, 10:00AM »
"Smart pension hokey cokey" , best description ever . I get these letters every other month, and I dont really do overtime , so dont know why but no doubt be back into smart pension when pay rise kicks in .

Compromiseman

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Re: A dreaded pension question
« Reply #31 on: 31-08-19, 10:07AM »
Do you normally pay tax & NI every month even when opted out of SMART?

If you're still paying Tax & NI when you've been taken out of SMART, you would take more home in NET PAY if you had been kept in SMART (despite minimum wage rate).

I bet in September payslip you end up paying less TAX & NI than you did in August despite the payrise (assuming same hours worked and back in SMART)!

Wouldn't be surprised if this is a big c**k-up!  Hence the axing of the bonus to facilitate the big pay rise in September is just a c**k-up cover up!

I suspect there are many full-timers worse off by approximately £11 per month (£143 per year) by being opted out of SMART.

This minimum wage rule has potentially caused a bigger problem by making people worse off by paying more TAX & NI!!!

Next big scandal after PPI!!! watch this space!!

NightAndDay

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Re: A dreaded pension question
« Reply #32 on: 31-08-19, 05:21PM »
S.M.A.R.T pension scheme takes between 4-7.5% of earnings on your gross amount before tax and n.i applies (because when you take your pension out it gets taxed anyway past a cash free lump sum, the savings in having a pension scheme is by Tesco contributing) meaning your taxable amount will be less than with no pension scheme in place because your taxable erarnings are less.

You can't be part of the S.M.A.R.T pension scheme if you don't do enough hours, however you will be put on a non smart scheme, this part I don't understand fully though, the non smart scheme adds your contributions after your tax and n.i, I think it assumes that if you're not doing enough hours to be part of the SMART scheme, you're not earning enough to be taxed, this happened with me when I went down from Shift Leader to 1 day a week ca (though my tax contributions were negative (i gained money) due to how HMRC forecasts earnings.)
« Last Edit: 31-08-19, 05:25PM by NightAndDay »

Welshie

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Re: A dreaded pension question
« Reply #33 on: 31-08-19, 06:17PM »
I always pay tax and ni , it just keeps moving in and out .

Sam29

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Re: A dreaded pension question
« Reply #34 on: 31-08-19, 09:40PM »
i get taken out of smart pension every time I have a holiday, smart pension only takes 3 lines of the wage slip as qualifying,: basic pay, sickness and skill pay.  overtime and holidays doesn’t count so if you have holidays you get took out as it looks like you are under the threshold

NightAndDay

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Re: A dreaded pension question
« Reply #35 on: 31-08-19, 10:06PM »
Saying what I've said earlier, the payslip where we got our colleague bonus payment, I had a smart pension contribution deduction for that (when I dropped down to a 1 day a week ca, my pension contributions were non-smart types), I would guess that you may need to be earning a certain amount for smart to apply.

Compromiseman

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Re: A dreaded pension question
« Reply #36 on: 01-09-19, 08:10AM »
The current annual personal tax allowance 2019/20 is £12,500, so you need to be earning at least that before you pay any income tax.

You should not be back in SMART if you are only working one day a week in my opinion. I would challenge why you are put back into SMART when the bonus is paid, you might be worse off for that month. If that bonus had been spread over the year you would not have been in SMART in any month.

If you're earning less than £12,500 you wouldn't gain any income tax reduction by being in SMART because you don't pay any in the first place.

The whole purpose of SMART is to reduce Income TAX and NI which should be approximately £11 per month

lordadmiral

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Re: A dreaded pension question
« Reply #37 on: 01-09-19, 04:37PM »
i get taken out of smart pension every time I have a holiday, smart pension only takes 3 lines of the wage slip as qualifying,: basic pay, sickness and skill pay.  overtime and holidays doesn’t count so if you have holidays you get took out as it looks like you are under the threshold
Its wierd system. Just had my very first letter. Never had it before even when i book over 2 weeks of holidays. i Have £10.5+ p/h so how the heck they can say i earn not enough for SMART pension?

Sam29

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Re: A dreaded pension question
« Reply #38 on: 03-09-19, 09:55PM »
i get taken out of smart pension every time I have a holiday, smart pension only takes 3 lines of the wage slip as qualifying,: basic pay, sickness and skill pay.  overtime and holidays doesn’t count so if you have holidays you get took out as it looks like you are under the threshold
Its wierd system. Just had my very first letter. Never had it before even when i book over 2 weeks of holidays. i Have £10.5+ p/h so how the heck they can say i earn not enough for SMART pension?

It’s because your holiday pay is on a separate line to basic pay. They don’t take holiday pay into account when working out if you earn enough for smart pension. I’m on basic rate and I get taken out of smart pension even I had one day holiday. Doesn’t matter I’d done 45 plus hours that month. It’s just a stupid system
« Last Edit: 03-09-19, 09:56PM by Sam29 »

NightAndDay

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Re: A dreaded pension question
« Reply #39 on: 03-09-19, 10:17PM »
The current annual personal tax allowance 2019/20 is £12,500, so you need to be earning at least that before you pay any income tax.

You should not be back in SMART if you are only working one day a week in my opinion. I would challenge why you are put back into SMART when the bonus is paid, you might be worse off for that month. If that bonus had been spread over the year you would not have been in SMART in any month.

If you're earning less than £12,500 you wouldn't gain any income tax reduction by being in SMART because you don't pay any in the first place.

The whole purpose of SMART is to reduce Income TAX and NI which should be approximately £11 per month

In my case it was beneficial, at the time I was on a BR tax code when receiving the bonus, it being done under SMART meant I got taxed less than if had been done under non-smart scheme.

blueberet

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Re: A dreaded pension question
« Reply #40 on: 16-09-19, 10:46AM »
I wish I hadn't clicked into this thread, I've just spent the last hour or so trying to work out what's going on with my pension contributions.

I currently have my contributions set to 7.5% to maximise the amount of money that Tesco also contribute. I'm a dotcom driver and work a sunday so this contribution doesn't bring my average hourly wage below the minimum, yet I am still opted out of SMART. This results in me only paying around 6% into my pension rather than the 7.5% and also leads to me paying more tax than a online calculator suggests I should be.

Can anyone explain how this doesn't result in me paying money to the tax man that could be in my pension instead?

Pochin123

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Re: A dreaded pension question
« Reply #41 on: 16-09-19, 12:58PM »
Quick question I left the business just short of a month ago will i get a final statement regarding how much my pension is worth in my final pay? When I asked my manager he just looked at me like i just called him a tw*t. Many thanks
Has This Been Briefed Out??

NightAndDay

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Re: A dreaded pension question
« Reply #42 on: 16-09-19, 01:49PM »
If you email TescoRetirementSavingsPlan@landg.com, they'll be able to acquiesce any pension related requests upon giving them your former employee information.

I'm not sure however to go about obtaining share log-in info once you're an ex-employee.

tumshie

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Re: A dreaded pension question
« Reply #43 on: 16-09-19, 03:42PM »
After you've had your final pay, you'll get letters in the post about shares & pension.

Pochin123

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Re: A dreaded pension question
« Reply #44 on: 16-09-19, 03:52PM »
Many thanks guys :)
Has This Been Briefed Out??

Compromiseman

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Re: A dreaded pension question
« Reply #45 on: 17-09-19, 07:46AM »
To blueberet

This is exactly the same issue I have been speaking about.

I think what's happening is that your gross hourly rate will fall below the minimum wage when you sacrifice 7.5 % salary.

If your currently hourly basic rate is £8.43.....7.5% salary sacrifice effectively reduces it to £7.80 (7.5% of £8.43 = £0.63, £8.43 - £0.63 = £7.80).
If your currently hourly basic rate is £8.85.....7.5% salary sacrifice effectively reduces it to £8.19 (7.5% of £8.85 = £0.66, £8.85 - £0.66 = £8.19)

Minimum wage is £8.21 and the law states that salary sacrifice can't take you below this rate, if it does, then you have be opted out of SMART....which subsequently makes you worse off in your net pay every month because you end up paying more TAX and NI.....absolute CRAZY!!!

This month the big payrise kicks in.....to £9.00 an hour or £9.68 for drivers (effective from September 1st 2019).

After 7.5% salary sacrifice on £9.00...effective rate becomes £8.32 (above minimum wage)...Absolutely no reason to be opted out of SMART if still earning over £12,500 (personal tax allowance) per year.

For drivers 7.5% salary sacrifice on £9.68 becomes £8.85...so well over the minimum wage.

Tesco benefit from paying lower NATIONAL INSURANCE when an employee is in SMART.
An employee benefits from paying lower NATIONAL INSURANCE when in SMART (assuming they are earning over £12,500 per year after the sacrifice).

Pretty sure this months pay rise is largely to cover up this mess up to avoid the constant letters sent out the month after the bonus is paid out (Bonus now abolished).

Blueberet, I think your pension contributions will be correct (check right hand side of payslip).

I agree that your net pay per month should be higher (approx. £11)

Compromiseman

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Re: A dreaded pension question
« Reply #46 on: 17-09-19, 07:49AM »
An employee benefits from paying lower NATIONAL INSURANCE and TAX when in SMART (assuming they are earning over £12,500 per year after the sacrifice).

best

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Re: A dreaded pension question
« Reply #47 on: 17-09-19, 04:58PM »
Hi, I don’t know if this is relevant to this thread but I’m a dot com driver doing 27hrs pw.  How can the company say to the tax man my income is over £13500pa.
Is the staff discount a taxable benefit?.  My rate of pay is£8.85.
Sorry for any inconvenience 🙂

NightAndDay

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Re: A dreaded pension question
« Reply #48 on: 17-09-19, 06:38PM »
Staff discount isn't a taxable benefit.

best

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Re: A dreaded pension question
« Reply #49 on: 18-09-19, 06:02AM »
Thank you for your reply night and day.👍