The pay that we use for pension purposes is known as your pensionable pay
We use this pay to work out both your contributions and your benefits.
But there was a major change to the definition of pensionable pay from April 2014, and this will affect you especially if you are part time
(or have been in the past) or if you work overtime.
If you were a member both before and after April 2014, then when we come to work out your benefits, we will use both the pre 2014 and the post 2014 definition of pensionable pay to work out your benefits as follows:
Your benefits before April 2014: these are still final salary benefits, so they will be based on your final pay at the point you leave, but using the pre 2014 definition of pensionable pay.
Your benefits from April 2014 onwards: in the career average scheme, these benefits are being worked out year by year, based on the post 2014 definition of pensionable pay. As each year’s career average benefits are rolled forward to the next year, they are inflation proofed in line with the consumer prices index (CPI).
Click on the links below for more information on pay.