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—

    1. a

      an amount determined by the employer in accordance with the arrangement under which the benefit is provided; or

    2. b

      otherwise, an amount determined by the scheme manager;

  • “permanent pensionable earnings”, in respect of any period, means—

    1. a

      basic pay in respect of that period;

    2. b

      any allowance granted on a permanent basis that the scheme manager determines to be permanent pensionable earnings in respect of that period; and

    3. c

      the money value of any benefit in kind that the scheme manager determines to be permanent pensionable earnings in respect of that period;

  • “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—

    1. a

      any non-consolidated performance-related pay not forming part of basic pay;

    2. b

      any allowance not granted on a permanent basis; and

    3. c

      the money value of any benefit in kind.

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.