How a member's 'final salary benefits' are calculated after a reduction in pay in the last 365 days of employment

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Example: Robert

Robert's pay was reduced from 1 April 2016, following a Job Evaluation Exercise. Robert became a member of the LGPS before 1 April 2014. He retires on 30 September 2016.
 
Robert'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 chosen by Robert after a pay reduction within 10 years of his date of retirement.

Robert's rates of pay in his last 3 years of pensionable employment:

 
 
 
       
From 1 April 2016
£14,000
 
 
From 1 April 2015
£18,000
 
 
From 1 April 2014
£17,000
 
 
From 1 April 2013
£16,000
 
 
       

Final Pay Calculation:

     
       
1 October 2015 - 30 September 2016 £15,994    
1 October 2014 - 30 September 2015 £17,498    
1 October 2013 - 30 September 2014 £16,501    
 
The pensionable pay that Robert received from 1 October 2014 to 30 September 2015 is used by his employer to calculate his 'final salary benefits' as this figure is higher than that received in his last 365 days of employment.