Pensionable Overtime Payments

7/4/2024

Dear Members,

The recent announcement on the NCA intranet that any Weekend or Bank Holiday overtime worked on a non-rostered day will be partially pensionable from the 1st July 2024, - comes as a direct result of the NCOA raising this matter formally with the Agency on the 16th January 2024.

It is therefore disappointing that having had early sight of that Agency communication, our subsequent request to acknowledge the NCOA challenge raised on your behalf has been ignored. This is particularly exasperating given recent engagement barely two weeks ago where we reiterated our concerns to the Director General at the quarterly Joint Negotiation and Consultation Committee (JNCC).  

It is also concerning that a matter on which we have yet to reach agreement - ‘retrospective’ pensionable overtime payments, remains unresolved despite our unambiguous position being communicated ahead of the Agency’s FAQ’s and article placed on the intranet.

It is the view of the NCOA that having now accepted that it had not applied an earlier finding of the Cabinet Office, Pensions Scheme Administrator correctly by implementing changes for current officers, the NCA should move swiftly and offer options on retrospective payments, to ensure that our members do not suffer any detriment.

This is especially important as on the 24th January 2024 the Agency wrote to the National Executive Committee of the NCOA informing them that ‘the FICC (Finance, Investment and Change Committee ) had approved pensionable payments at the beginning of October 2023 effective from the 1st October 2023.’

The background to these pensionable overtime payments relate to a Pension Ombudsman case (appeal upheld) involving an NCOA member. The finding is as follows,

‘Pensionable Earnings under the 1972 (classic) section of the Principal Civil Service Pension Scheme (PCSPS), under Annex 10B from the Employer’s Pension Guide (EPG) to Civil Service Pensions applies to members of the Classic pension in overtime grades (up to and including G3) the plain time element of payments received for non-rostered additional attendance at weekends and bank holidays is pensionable and confirmed in PCSPS – Section II (The 1972 Section), Appendix 1, Paragraph 2(ii).’  

The Scheme Administrator went on to say,

‘Civil Service Pensions are not the owners of your pay or employment records, and do not have access to this information; other than what has been provided by the NCA for the purposes of administering your pension. It is the responsibility of participating employers to ensure the information they provide to the scheme is accurate and timely. 

The NCA are also responsible for identifying which element/s of your pay and reward package are pensionable, and for ensuring the correct contributions are deducted from your pay. 

The NCA have now informed the IDR team, on advice from the Scheme Manager, Cabinet Office, that they agree with the position with effect from 8 October 2013; that is, that the element of your overtime pay in respect of your premium/duty pay is pensionable and should therefore be included in your pensionable earnings from that date.’

Having now published information on the intranet, the NCOA have been clear with the NCA that swift action is needed to enable officers to make a choice (depending on individual circumstances), to secure retrospective premium/duty pay is treated as pensionable earnings.

We will keep NCOA members updated on this matter and would urge the Agency to stand by its joint problem solving approach by recognising the contribution and value brought to the table by the NCOA on this occasion.   

Regards,

Steve Bond

Steve BOND
NCOA National Officer.