When a member chooses an average of 3 consecutive years pay within the last 13 years of employment after a reduction in pay
Example: Brian
Brian's pay was reduced from 1 April 2011 following a Job Evaluation Exercise. He became a member of the LGPS before 1 April 2014. He retires on 30 September 2016.
Brian's 'final salary benefits' will be based on:
-
his pensionable pay received during his last 365 days of employment (1 October 2015 - 30 September 2016), or
-
his pensionable pay based on any one of the last three years' pensionable pay if this is higher than the last 365 days, or
-
an average of any 3 consecutive years' pay (ending 31 March) in the last 13 years of employment if chosen by Brian as he suffered a pay reduction in his last 10 years of membership.
Year
|
Pensionable Pay
|
---|---|
From 1 April 2016
|
£17,500
|
From 1 April 2015
|
£17,000
|
From 1 April 2014
|
£16,500
|
From 1 April 2013 | £16,000 |
From 1 April 2012 | £15,500 |
From 1 April 2011 | £15,000 |
From 1 April 2010 | £19,000 |
From 1 April 2009 | £18,500 |
From 1 April 2008 | £18,000 |
From 1 April 2007 | £17,500 |
From 1 April 2006 | £17,000 |
From 1 April 2005 | £16,500 |
From 1 April 2004 | £16,000 |
As he suffered a pay reduction in his last 10 years of membership, Brian elects to select the best average of 3 consecutive years within the last 13 years. Which 3 year period does he select?
3 year period
|
Average pay over the period
|
Pensions Increase | Total |
---|---|---|---|
1 April 2013 - 31 March 2016
|
£16,500
|
- | £16,500 |
1 April 2012 - 31 March 2015
|
£16,000
|
5% | £16,800 |
1 April 2011 - 31 March 2014
|
£15,500
|
7% | £16,585 |
1 April 2010 - 31 March 2013 | £16,500 | 9% | £17,985 |
1 April 2009 - 31 March 2012 | £17,500 | 11% | £19,425 |
1 April 2008 - 31 March 2011 | £18,500 | 13% | £20,905 |
1 April 2007 - 31 March 2010 | £18,000 | 15% | £20,700 |
1 April 2006 - 31 March 2009 | £17,500 | 17% | £20,475 |
1 April 2005 - 31 March 2008 | £16,500 | 19% | £19,635 |
The pensionable pay selected that Brian selects to calculate his 'final salary benefits' would be the average in respect of the 3 consecutive years from 1 April 2008 to 31 March 2011.