Your final salary pensionable pay is usually your pay during your final year of scheme membership. One of the previous 2 years can be used if this is higher. We use your final salary pensionable pay to calculate pension built up before 1 April 2014.
The pay includes:
- normal pay
- contractual shift allowance
- bonus
- contractual overtime
- maternity, paternity or adoption pay
- any other taxable benefit specified in your contract as being pensionable.
The pay does not include:
- non-contractual overtime
- travelling or subsistence allowances
- pay in lieu of notice or pay in lieu of loss of holidays
- any payment as an inducement not to leave employment
- any award of compensation (other than payment representing arrears of pay) made for the purpose of achieving equal pay
- (apart from some historical cases) the monetary value of a car or pay received in lieu of a car.
Part time workers
If you work part time when you leave the LGPS, or at any point during your last year of membership, your final pay is the whole time pay that you would have received if you had worked whole time.
Reduced pay
Within your last 10 years of continuous employment with your employer, if your pay is:
- reduced, or
- increases to your pay are restricted,
you may have the option to use the best average final pay of any 3 consecutive years in the last 13 years (ending on a 31 March).
Find out how membership is calculated in the scheme before 1 April 2014