A member’s permanent pensionable earnings are their basic salary and any other pensionable emoluments. An emolument is any form of remuneration (allowances and bonuses) paid to an employee in addition to basic salary.
This includes non-cash pensionable benefits such as uniform allowances. You should ignore any reduction in pay that results from a salary sacrifice arrangement.
If the member works part time, you need to identify the correct ASLC salary band by calculating the full-time equivalent salary to ensure the correct percentage contribution is used.
You only pay contributions up to the earnings cap, (please note the earnings cap does not apply to nuvos or alpha).
Step 2 Look up the percentage rate.
You should use the permanent pensionable earnings you have calculated in step 1 to decide which percentage rate applies to the member. The percentage rates that apply to each pay band can be found on the Employer Contribution Rates page.
Step 3 Calculate actual pensionable earnings.
You should calculate the actual pensionable earnings that you will be paying the member for the month. Please note that for this step, you should use the actual rate of pay for a member who works part time, not the full time equivalent. If the member’s earnings are restricted by the earnings cap, then you should only use pensionable earnings up to the earnings cap.
Step 4 Apply the percentage.
The ASLC you should pay for the member is the percentage from step 2 applied to the earnings figure from step 3.
A member works part time on half the normal conditioned hours and earns £12,000 a year. This month they will receive a pensionable bonus* of £100.
Their permanent pensionable earnings are £24,000 (FTE).
The relevant percentage rate (2018-2019 ASLC rates) is 20.9%.
Their actual pensionable earnings for this month are £1,000 basic pay plus a bonus of £100. The total is therefore £1,100.
Therefore, the ASLC you should pay is 20.9% of £1,100, which is £229.90.
*Bonuses are generally non-pensionable. If you wish to make a bonus pensionable you must seek authorisation from the Scheme Manager first. See section 10 (‘Pensionable Earnings’) for further information.
3.5.7 You must pay the ASLCs once the month’s calculations have been completed, together with the appropriate employees’ contributions, including added pension, to Cabinet Office Civil Superannuation Vote. For methods of payment and where to send them, see Annex 3A (‘How do you pay over ASLCs?).
3.5.8 You must also send the Scheme Manager a breakdown report of the pension contributions when you pay them. A template of the report is in Annex 3B (‘Breakdown of the Monthly Pension Contributions’). You must email the report to the Scheme Manager at email@example.com. Do not send supporting documentation. The Scheme Manager only requires the Annex 3B report.