Calculation of Max Pension Lump sum for Revenue purposes

[Finney]

Revenue rules say that final remuneration may be computed on one of the following bases:

(i) (a) Basic remuneration over any 12-month period of the five years preceding the relevant date (that is, the date of retirement, leaving service or death, as the case may be), plus
(b) the average of any fluctuating emoluments over three or more consecutive years ending on the last day used in (a) above.

(ii) The average of the total emoluments for any three or more consecutive years ending not earlier than ten years before the relevant date.

(iii) The rate of basic pay at the relevant date or at any date within the year ending on that date plus the average of any fluctuating emoluments calculated as in (i) above.

Can anyone advise how BIK on health insurance is treated in the above calculations? i.e. Is it part of basic remuneration, fluctuating emoluments or rate of basic pay? Thanks in advance.

 

[AAAContributor]

BIK is typically regarded as a fluctuating emolument for the purposes of the above calculations (even though in practice the taxable sum may not fluctuate).

Source - Revenue: Pensions Law and Practice, FA 2010

 

[Finney]

BIK is typically regarded as a fluctuating emolument for the purposes of the above calculations (even though in practice the taxable sum may not fluctuate).

Source - Revenue: Pensions Law and Practice, FA 2010

Thank you!

 

[jasdpace@gmail.]

Out of curiosity, anyone know the distinction between Basic Pay and Basic Remuneration? [My guess is that these terms are interchangeable and the Revenue is just having a laugh?!]