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  • Glossary


  • Pensionable pay

    The pay on which you normally pay contributions is your normal salary or wages plus any shift allowance, bonuses, contractual overtime, Maternity Pay, Paternity Pay,  

    Adoption Pay, Shared Parental Pay, Parental Bereavement Pay, and any other taxable benefit specified in your contract as being pensionable. 

    You do not pay contributions on: 

    • overtime above full-time hours (unless it is contractual overtime)
    • any travelling or subsistence allowances
    • pay in lieu of notice
    • pay in lieu of loss of holidays
    • any payment as an inducement not to leave before the payment is made
    • any award of compensation (other than payment representing arrears of pay) 

    made for the purpose of achieving equal pay 

    • pay relating to loss of future pensionable payments or benefits
    • any pay paid by your employer if you go on reserve forces service leave
    • the monetary value of a car or pay received in lieu of a car (apart from some historical cases).
  • Accrual rate

    The formula used to describe the rate at which you build up pension benefits whilst a member of the LGPS (whether under the final salary or CARE elements of the scheme). It is expressed as a fraction (e.g. 1/60th, 1/80th, 1/49th). The lower the bottom number, the better the pension benefit you will receive for an equivalent amount of pensionable service.

  • Additional Voluntary Contributions (AVCs)

    These are extra payments to increase your future benefits. You can also pay AVCs to provide additional life cover.

    All LGPS administering authorities have an AVC arrangement that you can use to invest money with an AVC provider. AVC providers are often insurance companies or building societies. AVCs are deducted directly from your pay and attract tax relief.

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