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Pensionable Pay and calculating pay figures

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Go to partner's pension section on death benefits page. 

Pensionable pay is the pay on which employees normally pay contributions, as defined by the LGPS Regulations.

However, it is important to note that as a complicating factor there are two definitions of pensionable pay which apply for calculations in relation to pre-2014 benefits (i.e. those with a final salary link) and in relation to post 2014 benefits (i.e. those which accrue CARE benefits).

The commonalities and differences are set out below, as our explanations on other ways of using pensionable pay and related topics.

Typically pensionable pay includes:

  • your normal salary or wages
  • bonuses
  • overtime (both contractual and non-contractual)
  • maternity, paternity, adoption and shared parental pay
  • shift allowance
  • additional hours payments if you work part-time
  • any other taxable benefit specified in your contract as being pensionable

You do not pay contributions on:

  • any travelling or subsistence allowances
  • pay in lieu of notice
  • pay in lieu of loss of holidays
  • payment as an inducement not to leave
  • 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
  • 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
  • any sum which has not had tax liability determined on it

Difference between CARE and Final Salary

There are three main differences to your pensionable pay that is calculated for your CARE pension (after 1 April 2014) and Final Salary (up to 31 March 2014)

The differences are, from 1st April 2014 , under CARE:

  • Non-contractual overtime was been removed from the exclusions list and so it is pensionable.
  • A payment in consideration of loss of future pensionable payments or benefits is not pensionable.
  • Any actual pay paid by the scheme employer to a reservist during Reserve Forces Service Leave is not pensionable.