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.
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.
An employee’s pensionable pay is the total of:
An employee’s pensionable pay doesn't include:
An employee’s pensionable pay is the total of:
But an employee’s pensionable pay doesn’t include:
Assumed pensionable pay will normally be used where the member has gone on to reduced or no pay. This may be where:
For all tier 1 and 2 ill-health retirements and death in service cases, we'd work out the ill-health enhancements and death grants respectively using assumed pensionable pay.
Regulation 10 of the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 gives protection to some scheme members whose pensionable pay has been reduced within ten years prior to their last day of active membership within the pension scheme.
Regulation 10 says:
10.—(1) Subject to paragraph (2), where a member’s pensionable pay in a continuous period of employment is reduced or restricted—
(a) because the member chooses to be employed by the same employer at a lower grade or with less responsibility;
(b) for the purposes of achieving equal pay in relation to other employees of that employer;
(c) as a result of a job evaluation exercise;
(d) because of a change in the member’s contract of employment resulting in the cessation or restriction of, or reduction in, payments or benefits specified in the member’s contract of employment as being pensionable emoluments; or
(e) because the rate at which the member’s rate of pay may be increased is restricted in such a way that it is likely that the rate of the member’s retirement pension will be adversely affected
If a member falls into the above category, they must make sure their benefits are worked out using the best possible pay. To do this they can:
It’s the member's responsibility to ask for Regulation 10 to be used when working out final pay. Members are asked to make sure they keep any paperwork about their pay cut, in case they need to provide details in the future.