Pensions Notice 01/2006 (page 2, item 11) states that NATS retained the cap on earnings, which limits pensionable earnings, that was previously statutory and then repealed by goverment :
HM Revenue & Customs: Rates and Allowances – Pension Schemes see notional earnings cap
Why do we have an pensionable earnings cap if it no longer statutory? Are NATS board members capped in this way? I will have look at the nats annual report later.
Cap is currently £117,600 (maximum pensionable earnings )Is this another change to our pension that was sneaked in?
The cap increases by RPI each year and so RPI+0.5 keeps even the highest earning ATCOs within the Cap for the next few decades. However, RPI+1 average annual pay increase means that top of scale band5 ATCO (for example) will hit the cap in about 27 years time. if RPI+1.5% in about 17 years and so on...
I would suggest that this whole RPI+0.5% is a red herring as NATS management (and NTUS) must know that any meaningful pay rises above RPI will eventually cause the ceiling to be reached sooner. In the long term they get what they want .
F
ers