PART 4Scheme membership
CHAPTER 3Pensionable earnings
Pensionable earnings26
1
For the purpose of calculating a member’s pension or other benefits under this scheme, the member’s pensionable earnings for any period are the sum of—
a
the member’s permanent pensionable earnings in respect of that period; and
b
the member’s fluctuating pensionable earnings in respect of that period.
2
The money value of any benefit in kind forms part of a member’s pensionable earnings if—
a
the benefit is expressly provided on a pensionable basis; or
b
the scheme manager determines the benefit forms part of the member’s permanent pensionable earnings or fluctuating pensionable earnings.
3
If a benefit in kind is expressly provided on a pensionable basis, the scheme manager must determine whether the benefit forms part of the member’s permanent pensionable earnings or fluctuating pensionable earnings.
4
In this regulation—
“benefit in kind” means anything other than money provided to a member of this scheme in connection with the member’s pensionable service;
“money value”, in relation to a benefit in kind, means—
- a
an amount determined by the employer in accordance with the arrangement under which the benefit is provided; or
- b
otherwise, an amount determined by the scheme manager;
- a
“permanent pensionable earnings”, in respect of any period, means—
- a
basic pay in respect of that period;
- b
any allowance granted on a permanent basis that the scheme manager determines to be permanent pensionable earnings in respect of that period; and
- c
the money value of any benefit in kind that the scheme manager determines to be permanent pensionable earnings in respect of that period;
- a
“fluctuating pensionable earnings”, in respect of any period, means any of the following that the scheme manager determines to be fluctuating pensionable earnings in respect of that period—
- a
any non-consolidated performance-related pay not forming part of basic pay;
- b
any allowance not granted on a permanent basis; and
- c
the money value of any benefit in kind.
- a
5
The total fluctuating pensionable earnings in respect of any period must not exceed one third of the total permanent pensionable earnings in respect of the same period.