Pensionable pay within the LGPS has two definitions based on the regulations in place – the 2008 and 2014 scheme definitions.
The definition of pensionable pay in the 2014 scheme is very similar to the 2008 scheme. See below for the differences.
What is the definition of pensionable pay in the 2014 regulations?
An employee’s pensionable pay is the total of:
- All salary, wages, fees and other payments (including overtime and additional hours) paid to the employee
- Any benefit mentioned in the employee’s contract as being pensionable
An employee’s pensionable pay doesn't include:
- Any sum which has not had income tax liability determined on it
- Any travelling, subsistence or other allowance paid as expenses incurred in relation to the employment
- Any payment in consideration of loss of holidays
- Any payment in lieu of notice to terminate a contract of employment
- Any payment as an inducement not to terminate employment before the payment is made
- Any amount treated as the monetary value to the employee of the provision of a motor vehicle or any amount paid in lieu of such provision
- Any payment in consideration of loss of future pensionable payments or benefits
- Any award of compensation (excluding any sum representing arrears of pay) to achieve equal pay in relation to other employees
- Any payment made by the scheme employer to a member on reserve forces service leave
- Returning officer or acting returning officer fees other than fees paid in respect of:
-Local government elections
-Elections for the National Assembly for Wales
-Parliamentary elections or European Parliamentary elections.