copyright © derbyshire county council 2006 example leaver form

Copyright © Derbyshire County Council 2006

Example leaver form


Pensionable Pay (Care Pay)

Actual Pensionable Pay (PP) (4a & 4a1)

New 2014 career average pensionable pay definition

http://www.lgpsregs.org/index.php/guides/payroll-guide-to-the-2014-scheme?showall=&start=5

Actual pensionable pay (if part-time actual rate of pay)Includes

• Overtime• Additional hours

Whole time rate for job = £28,000, member works 15hrs per week, 37hrs full time equivalent. Actual pensionable pay = 15/37 * £28,000 = £11,351.35


Pensionable PayAssumed Pensionable Pay (APP)Replaces concept of notional pay in respect of absences from work and is used in the projection of pension entitlement in the event of ill-health or death in service


APP is worked out using the last 3 months’ pay (or 12 weeks’ pay if weekly paid) prior to a reduction in pay, excluding any lump sums paid during that period. It is uprated to an annual rate (4c)The employer may, at their sole discretion, decide to add back into the APP any regular lump sum payment made in the last 12 months.

a “regular lump sum” is a payment for which themember’s employer determines there is a reasonable expectation that such a payment would bepaid on a regular basis

If APP spans the scheme year (to 31st March) it is uprated by HM Treasury revaluation order


Assumed Pensionable Pay example

October November December January February March

£1,500 £1,750(includes £250 lump sum payment as part of pay award)

£1,550 £1,250 £775 £775

Monthly paid employee who went on to half sick pay 20th January, received lump sum as part of annual pay award in November & % increase in December

Calculation of APP uses last 3 full months before pay drop – October to December

£1,500 + £1,500 (note lump sum removed) + £1,550 = £4,550 / 3 X 12 = £18,200

Employer could, if they wished add back in £250 lump sum payment. Please note, if a member has any earned payments e.g. overtime in the months you are using for APP this would be included in the calculation and not treated as a lump sum payment

Half pay

3 months whole pay prior to month of pay drop


Assumed Pensionable Pay

Apportioning (would be included in 4a & 4a1)

Example where this employee leaves on 31 March, as the employee dropped to half sick pay on 20th January we need to add an amount of APP into the CARE pay for the member.

Annual rate of APP = £18,200Actual Pay earned to 19th January = £1500 for 7 months (April to October), £1750 in November and £1,550 in December plus 19 days at £1,550 (£950) in January = £14,750

If using apportioning method 2 the amount of CARE pay for the year (and to determine employer contribution amount) would be £14,750 + £3,620.43 (APP for 12 days January plus February & March) = £18,370.43

Apportion method Amount of APP to apportion to period of absence

£18,200 X 71 OR 365

£3,540.27

(£18,200 X 2 months ) + (£1516.67 X 12 days) OR 12 31

£3,620.43

(£18,200 X 2 months ) + (1516.67 X 9 days) 12 22

£3,653.79


Pensionable PayFinal Pensionable Pay (4b)Current definition of Final pay for pre 2014 benefits (2008 definition of pensionable pay)


Is last year of *full-time equivalent pensionable pay prior to date of leaving

Example leaver 31st March, Full-Time employee. Pay rate to 30th November = £18,000 pay rate change to £18,600 on 1st December.

*If the employee was part-time e.g. 18.5/37 the actual rate of pay would be £9,300 at leaving but the FTE rate would be used in the final pensionable pay calculations. However, any pensionable allowances are included at their actual rate paid (not grossed to FTE)

Period of pay No days FTE Rate Amount Actual pensionable payments received

01/04 – 30/11 244 £18,000 £12,032.88 £250

01/12 – 31/03 121 £18,600 £6,166.03

Total £18,198.91

Final Pensionable Pay = £18,198.91 + £250 £18448.91

Does NOT Include •Non-contractual Overtime •Additional hours

Does include•Contractual Overtime


Example leaver form


Short leaver form


Leaver forms – additional pay information


Estimates

• Complete estimate request form– May be completed by employee and / or employer– Final Salary & Care Pay details needed– Redundancy requests – only via employer HR– Flexible retirement - only via employer HR– Ill health – member request Tier 3 only

• Tier 2 & Tier 1 (enhanced pension) via employer HR request

– Cash Equivalent Transfer Value (CETV) – short form being devised – requested by pensions only


EstimatesExample estimate request


EstimatesExample estimate request – pay calculation

Pensionable Pay (CARE) Actual Pay earned to 30/11/2014 = £1500 for 7 months (April to October), £1750 in November and £1,550 in December

Total = £13,800

Estimate Actual Pensionable Pay Pay rate from December = £18,600 per year

Rate to be used to project pensionable pay (CARE) to estimated retirement date

Final Pensionable Pay From To FTE Pay No Days Pay for period01/03/2014 30/11/2014 £18,000 275 £13,561.6401/12/2014 28/02/2015 £18,600 90 £4,586.30

Total 365 £18,147.95Plus pensionable payment £250Final Pensionable Pay £18,397.95

copyright © derbyshire county council 2006 example leaver form

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