Pensionable pay is your normal pay plus:
Your employer will confirm which elements of your pay are pensionable. Pensionable pay does not include:
If you joined the scheme after 16 March 1987 and before 1 June 1989, the maximum pensionable pay that can be used to work out the tax-free lump sum when you retire is £100,000. If you joined the scheme after 31 May 1989, HMRC restricts the amount of pay on and upon which your benefits can be worked out. For fiscal year 03/04 this amount was £99,000.
Pensionable pay is usually the pay on which pension contributions have been paid in the 365 days immediately before leaving service. However, if either of the immediately preceding two years would produce a higher figure, then that year should be used.
If you work part time, the figure used to work out your pension benefits is the pensionable pay you would have received if you had worked full time.
If the relevant period includes sick leave or maternity leave where your pay is reduced this reduction should be ignored. The pensionable pay calculation should show the full pay you would have received if you had not been on sick leave or maternity, paternity or adoption leave. However, if you have chosen not to repay contributions for unpaid maternity leave or additional adoption leave, this time cannot be included in the period used for calculating pensionable pay.
If the relevant period includes a period of unpaid absence where no pension contributions were paid, the relevant period must go back until the pensionable pay period comprises 365 days.
If your pay has been reduced through circumstances beyond your control within the last 10 years and you have received a certificate of protection of pension benefits, your final pay will be:
Whichever is greater.