Your payslip explained

Some of the terms you might see on your payslip

Gross pension and allowances
Basic pension / This is your basic monthly pension payment.
GMP, Pre 6/4/88
GMP, Post 5/4/88 / The Guaranteed Minimum Pension (GMP) is the minimum pension which we have to provide for members who were contracted out of SERPS (the top up state pension scheme) between 6 April 1978 and 5 April 1997. The amount is broadly equivalent to the amount the member would have received had they not been contracted out.
The GMP is split into two elements, pre 6 April 1988 and post 6 April 1988 because different cost of living adjustments are applied to each part.
Pre 6/4/88 GMP Inc
Post 6/4/88 GMP Inc / GMP is calculated at age 60 (for women) and age 65 (for men). If you worked beyond this age, you get an increment on the GMP up until your actual leaving date.
The increment is again split into two elementsbecause different cost of living adjustments are applied to each part.
Deductions
Income tax / This is the tax that has been deducted from your pension. If it is followed by a minus sign (-) then it is a tax refund.
Net pay advance / You will have received the net pay advance payment into your bank account shortly after your retirement. On your first payslip, the amount of the payment is included in both the basic pension figure and as a deduction so that it is not paid again with your second pension payment.
Charitable donation / If you take part in the Give As You Earn scheme, the donation will appear here.
HSA Crown Plan
HSA Individual Plan / If you contributeto a Hospital Simplyhealth plan, your insurance contributions will appear here.
Tax codes
BR / This stands for Basic rate i.e. 20% tax is deducted from your benefits.
Suffix codes e.g. 647L / The number part of the tax code indicates how much is allowed against your pension before calculating income tax. For example, 647 means that your tax-free pay for the tax year is £6,479.
K codese.g. K375 / The K code is a negative tax code and is applied if you owe extra tax.
NT / This code is an abbreviation of No Tax or Nil Tax and is applied if youdo not have to pay tax on your pension.
D0 / This code is applied by HMRC if you are liable to pay income tax at the higher rate, i.e. 40%. You may be given this tax code if you use your personal allowances on another employment or pension.
Wk 1 / This means your tax code is being applied on a week one basis and no account is taken of previous tax you’ve paid in the year. You get an equal amount of tax free pension each month but because changes that happened earlier in the year are not taken into account, your tax might not be exactly right at the end of the year.