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TEESSIDE PENSION FUND. Pensionable Pay. Pensionable Pay. Meaning of pensionable pay Pensionable or not Final pay - general Full time & part time employees Final pay – BIS Last 365 days Reductions & restrictions Certificate of Protections Pre 2008 & post 2008 Final pay - fees - PowerPoint PPT Presentation

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  • TEESSIDE PENSION FUND

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    Pensionable Pay

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    Pensionable PayMeaning of pensionable payPensionable or notFinal pay - generalFull time & part time employeesFinal pay BIS Last 365 daysReductions & restrictionsCertificate of ProtectionsPre 2008 & post 2008Final pay - feesUnusual calculations

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    Pensionable PayMeaning of pensionable paysalarywagesfees & other paymentsfor members own use in respect of their employment - pensionable emoluments specified in their contract of employment

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    Pensionable PayPensionable Pay does not include- Payments for non-contractual overtimeany travelling, subsistence or other allowance in respect of expenses incurred in relation to the employmentany payment in consideration of loss of holidaysany payment in lieu of notice to terminate their contract of employmentany payment as an inducement not to terminate his employment before the payment is made

    the amount of any supplement paid by the Environment Agency in recognition of the difference in contribution rates between members of the principal civil service pension scheme and the Scheme- Any payment by way of compensation for the purposes of achieving equal pay in relation to other employees

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    Pensionable PayWorkshop 1

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    Pensionable PayPensionable or not?Mr Workaholic commences employment with you and his first pay packet is comprised of many elements.

    2,500.00Salary 250.00Performance-related Pay1,000.00Cash equivalent of lease car 500.00Contractual Overtime 296.75Travelling Expenses 428.75Subsistence expenses 14.00First Aid Allowance 154.25Enhancement for weekend working 850.00Non-contractual overtime 5,993.75

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    Pensionable PayPensionable or not?Mr Workaholic commences employment with you and his first pay packet is comprised of many elements.

    2,500.00Salary Yes 250.00Performance-related PayYes 1,000.00Cash equivalent of lease car No 500.00Contractual Overtime Yes 296.75Travelling ExpensesNo 428.75Subsistence expenses No 14.00First Aid AllowanceYes 154.25Enhancement for weekend workingYes 850.00Non-contractual overtimeNo 5,993.75

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    Pensionable PayNext month he receives a similar pay packet but with an extra 1,000.00 honoraria payment.

    Is the honoraria pensionable?

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    Pensionable PayNext month he receives a similar pay packet but with an extra 1,000.00 honoraria payment.

    Is the honoraria pensionable?

    Depends on what the honoraria is in respect of:

    Lieu of duties Yes

    Anything in the exceptions listNo(i.e. extra hours that couldnt put through)

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    Pensionable PayIn a number of months time his final pay packet includes 2,500.00 payment in lieu of notice and 1,000.00 payment in lieu of holidays not taken.

    Are either of these payments pensionable?

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    Pensionable PayIn a number of months time his final pay packet includes 2,500.00 payment in lieu of notice and 1,000.00 payment in lieu of holidays not taken.

    Are either of these payments pensionable?

    NO

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    Pensionable PayFinal Pay- year ending on day member ceases to be an active member- best of the last three years- part time use a single comparable whole time employment- disregard any absences due to illness or injury

    Pensionable Pay- calculated as final pay, where a year is 365 days- leap year 366 days only if date of leaving is 29th February- less than one years service, convert to 365 daysi.e. Member employed from 1st March to 21st Septemberon a salary of 18,000.00 so if pay for period (205 days) was 10,109.59, the pensionable pay would be 10,109.59/205 x 365 = 18,000.00

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    Pensionable PayIf the pay rates are as follows: 01/12/2007 to 31/03/2008 = 26,067.00 01/04/2008 to 30/11/2008 = 26,835.00

    You need to calculate the period 01/12/07 to 31/03/2008 at the rate of 26,067 and the period 01/04/2008 to 30/11/2008 at the rate of 26,835

    01/12/2007 to 31/03/2008 gives a number of days of 121 days01/04/2008 to 30/11/2008 gives a number of days of 244 days 365 daysPensionable pay01/12/07 to 31/03/08 is 121 / 365 x 26,067.00 = 8641.3901/04/08 to 30/11/08 is 244 / 365 x 26,835.00 = 17,939.01Pensionable Pay 26,580.40

    The pensionable pay you calculate will always fall between the first and last salaries.

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    Pensionable PayFinal Pay/Pensionable Pay Why 365 days?

    Strictly speaking the final pay should done in accordance with the way in which a person is paid.

    - employers pay a salary/wage - paid monthly i.e. 1/12th- paid lunar i.e. every 28 days- 52 weeks- 1/260th of the annual salary for each working day

    Allows many variationsi.e. leaving on the 12th of a month- September would be 12/30ths, October would be 12/31sts- or 12/28ths

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    Pensionable PayMrs Hutton

    Retires at age 60 on 29 September 2010. She is monthly paid and her rates of pay over the last year were: 01 April 2009 16,440.00 p.a. 01 April 2010 17,400.00 p.a.Final/Pensionable pay30 September 2009 to 31 March 2010 16,440.00 x 6/12 = 8,220.00 16,440.00/12 x 01/30 = 45.67 1 April 2010 to 29 September 2010 17,400.00 x 5/12 = 7,250.00 17,400.00/12 x 29/30 = 1,401.67 Pensionable Pay = 16,917.34

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    Pensionable PayMrs Hutton

    Retires at age 60 on 29 September 2010. She is monthly paid and her rates of pay over the last year were:

    01 April 2009 16,440.00 p.a01 April 2010 17,400.00 p.a.

    Worked on days rather than months gives the following

    Final/Pensionable pay30 September 2009 to 31 March 2010 16,440 x 183/365 = 8,242.521 April 2010 to 29 September 2010 17,400 x 182/365 = 8,676.16Pensionable Pay = 16,918.68

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    Pensionable PayWorkshop 2

    Full Time Employee Leaving Date 31 December 2003

    Salary Details01.01.200313,884.0001.04.200314,391.00

    Calculate the annual pensionable pay:

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    Pensionable PayWorkshop 2

    Full Time Employee Leaving Date 31 December 2003

    Salary Details01.01.200313,884.0001.04.200314,391.00

    Calculate the annual pensionable pay:

    01.01.03 - 31.03.03 90/365 x 13,884.00= 3,423.4501.04.03 - 31.12.03275/365 x 14,391.00= 10,842.53

    = 14,265.98

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    Pensionable PayWorkshop 2

    Full Time Employee Leaving Date 03 March 2004

    Salary Details04.03.200315,264.0001.04.200316,194.0022.09.200316,718.00

    Calculate the annual pensionable pay:

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    Pensionable PayWorkshop 2

    Full Time Employee Leaving Date 03 March 2004

    Salary Details04.03.200315,264.0001.04.200316,194.0022.09.200316,718.00

    Calculate the annual pensionable pay:

    04.03.03 - 31.03.03 28/365 x 15,264.00= 1,170.9401.04.03 - 21.09.03174/365 x 16,194.00= 7,719.8822.09.03 - 03.03.04163/365 x 16,718.00= 7,465.85

    = 16,356.67

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    Pensionable PayWorkshop 2

    Full Time Employee Leaving Date 15 January 2004

    Salary Details16.01.2003 13,884.00 plus 100 First Aid Allowance01.04.2003 14,391.00 plus 100 First Aid Allowance

    Calculate the annual pensionable pay:

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    Pensionable PayWorkshop 2

    Full Time Employee Leaving Date 15 January 2004

    Salary Details16.01.2003 13,884.00 plus 100 First Aid Allowance01.04.2003 14,391.00 plus 100 First Aid Allowance

    Calculate the annual pensionable pay:

    16.01.03 - 31.03.03 75/365 x (13,884.00+100)= 2,873.4201.04.03 - 15.01.04290/365 x (14,391.00+100)= 11,513.40= 14,386.82OR16.01.03 - 31.03.03 75/365 x 13,884.00 = 2,852.8801.04.03 - 15.01.04 290/365 x 14,391.00 = 11,433.94= 14,286.82 + 100 = 14,386.82

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    Pensionable PayFull time & Part time employees

    Benefit regulation 1 defines a whole time employee asan employee whose contract of employment providesThat he is such an employee for the scheme that his contractual hours are not less than the number of contractual hours for a person employed in that employment on a whole time basis

    Benefit regulation 7(3) part-time members accrue membership as an appropriate fraction of the duration of membership they have.

    Benefit regulation 7(4) states the numerator of that fraction is the number of contractual hours during the part-time service and its denominator is the number of contractual hours of that employment if it were on a whole-time basis

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    Pensionable PayStraight forward, simple definition

    School crossing patrollers whole-time equivalent hours are 7.5 per week

    Therefore a part timer working 5 hours per week for 6 years at a rate of 6.00 per hour would have a pensionable pay of 6 x 7.5 x 52.14 = 2,346.30 and pensionable service of 6 x 5/7.5 = 4 years. This would give a pension of 4/60 x 2,346.30 = 156.42 p.a.

    Transferred to a cleaning post of 5 hours per week where the whole-time equivalent hours are 37 at a rate of 6.00 per hour. Pensionable pay becomes 6 x 37 x 52.14 =11,575.08.

    The same service already accrued would give a pension of 4/60 x 11,575.08 = 771.67 p.a.

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    Pensionable PayStraight forward, simple definition

    Therefore for administrative purposes the whole-time equivalent of all part-time employment is 37hours.

    The service is therefore recorded as ??.??/37.00

    The pensionable pay is calculated as ? X 37 x 52.14.

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    Pensionable PayHours & Pay proportionality

    Mrs Red works whole-time on a salary of 10,000.00 plus 2,

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