What constitutes penionable remuneration?

[Broadcaster]

Hi
I notice on a Civil Service pension website the following:

What is pensionable remuneration?

Generally, pensionable remuneration is final pay (i.e. salary payable on the last day of reckonable service), plus, effective from 1st April 2004 the average of the best of three consecutive years’ pensionable allowances in the final ten years of service. The benefits may, in some cases be based on an average salary. For instance, if, within the last 3 years of service, an officer has changed grade (e.g. been promoted) or received a personal change in pay, an average pay figure will be used which takes account of the final salary and the salary of the former grade and the relative periods spent in the two grades in the last 3 years. Where

I wonder if this applies equally to both civil and public service.

I work in the public sector and it would be more beneficial for me to calculate the best 3 years of salary for calculating my final pension figure (given recent reductions in pay). I'm not sure if I understand the above
pensionable remuneration is final pay ....plus, effective from 1st April 2004 the average of the best of three consecutive years’ pensionable allowances in the final ten years of service.
Does this mean that I can calculate my pension on the 3 best consecutive years of pay rather than on my final pay. I am due to retire shortly and my average over the years 2007, 2008 and 2009 is higher than my final salary will be?
Would appreciate any help on this.

Many thanks.

 

[Slim]

I work in the public sector and it would be more beneficial for me to calculate the best 3 years of salary for calculating my final pension figure (given recent reductions in pay). I'm not sure if I understand the above
pensionable remuneration is final pay ....plus, effective from 1st April 2004 the average of the best of three consecutive years’ pensionable allowances in the final ten years of service.
Does this mean that I can calculate my pension on the 3 best consecutive years of pay rather than on my final pay. I am due to retire shortly and my average over the years 2007, 2008 and 2009 is higher than my final salary will be?
Would appreciate any help on this.

Many thanks.

No, you will not be able to pick the pre 'pay cut/pension levy' salary as your FS. The provisions above seem to relate to pensionable 'allowances' i.e. on-call, etc.

 

[Broadcaster]

thank you Slim for that.
I notice in another area of that document it states:
If you change grade in the last 3 years (e.g. on promotion) pensionable remuneration is based on the average of the salaries paid in the last 3 years.

that would seem to imply that it is not "allowances" that are involved in averaging here but salary! Does this make sense?

 

[Slim]

thank you Slim for that.
I notice in another area of that document it states:
If you change grade in the last 3 years (e.g. on promotion) pensionable remuneration is based on the average of the salaries paid in the last 3 years.

that would seem to imply that it is not "allowances" that are involved in averaging here but salary! Does this make sense?

No, it's both, (a) any additional allowances earned over a period and (b) if you change grade or payscale in last 3 years. You really should clarify with your Pensions Department. It's darned tricky stuff.

 

[SFgirl]

Your pensionable Renumeration is the sum of your salary at your retirement date( the salary of a whole time person if you are on reduced hours) plus an average for your emoluments/allowances if you have any ( Saturdays, weekends, nights). A report is run on the previous ten years prior to your retirement, the best three consecutive years average in the previous ten is added to salary. The PR figure is then used to calculate your lump sum and pension. if you have been promoted in the previous ten years your three in ten will be calculated from the date of your promotion. if your promotion is in the last three years prior to your retirement your salary only will be averaged.