Contributions paid by you and the member can go up, down, or stay the same, depending on the results of this review. With any changes usually coming into effect from July.

Regardless of whether contributions change, the member’s benefits will not be affected. That’s because benefits are based primarily on their final average pay and not contributions paid in year by year.

This review simply helps us to build the member’s pension benefits and make sure there will always be enough to cover their benefits when they retire.

So how does the annual contribution reassessment work?

The contribution reassessment is carried out every year for all active DB members in the RPS. 

As an employer you will be contacted directly to supply information about the members’ pensionable pay.

We then use that information to work out what you, and the member, should be paying into the Scheme, in order for the member to get the benefits they’re entitled to when they retire.

If the member’s pensionable pay has increased from the previous year, your contributions could go up, as well as theirs.

If the member has not received a pay increase then their contributions could stay the same, or go down in some cases. 

What does it mean for me and my members?

If we need to change how much you or your members are paying into their pension, then this will happen automatically. 

It should come into effect from July, unless there was a delay in you supplying salary data. In that case changes will come into effect from the next pay day and charges may be incurred.

Your member’s retirement benefits will not be affected.

You cannot alter contribution rates into the DB pension scheme.

However, if a member would like to pay more, they can do so through Additional Voluntary Contributions (AVCs).

What if I haven’t taken part in the reassessment exercise?

Providing pay information is required in line with Scheme rules.

The annual reassessment cannot be completed until this data is received.

If there is failure to engage, this will trigger a reportable event to the Trustee.

This could have detrimental impact on your scheme’s funding position and your members’ benefits and contributions could be incorrect.

A charge may also be applied.

Where can I find out more?

If you have any queries relating to Reassessment of Contributions, you can raise these directly with your Client Relationship Manager.

If your members have any further questions they can contact us direct on csu@rpmi.co.uk or 0800 012 1117.