# Pensionable salary



## Bobby (8 Nov 2004)

Can anyone explain why on my pension benfits statement, my "Pensionable Salary" quoted is lower than my basic gross salary.


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## rainyday (8 Nov 2004)

Do you have a car allowance included in your gross salary? These aren't normally included in pensionable salary, on the basis that your employer wouldn't be providing a car for your employment.


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## Bobby (8 Nov 2004)

Like I said, basic salary, no bonuses, allowances or expenses included. The pensionable then comes in much less, about €13K less.


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## ClubMan (8 Nov 2004)

Is your pensionable salary reduced compared to your gross to take account of what you would receive in  payments as per this Pensions Board link perhaps?


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## Bobby (8 Nov 2004)

Thanks Clubman, that seems a likely reason. Must check with the provider I guess.


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## Liam D Ferguson (9 Nov 2004)

I'm guessing that your scheme is a Defined Benefits one, based on the termoinology used so far.  

In fact, the Trustees of such a scheme have relative freedom over how they define "pensionable salary".  It doesn't have to reflect actual salary.  

As ClubMan says, a popular option under such schemes is to reduce the actual salary by some multiple of the State Pension.  The thinking is that you will (hopefully) be in receipt of State Pension as well as scheme pension when you retire, so they're targetting getting you a pension of X% of your final salary _including_ the State's offering.  

If the scheme permits Additional Voluntary Contributions (AVCs) you can always top up your main scheme benefits with AVCs to a percentage of your actual final salary.  

Liam D Ferguson
[broken link removed]


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