The Teachers' Pensions Regulations 2010

Average salary: teacher in pensionable employment, etc. on or after 1st January 2007 E+W+S

37.—(1) This regulation applies to a person if—

(a) the person was in pensionable employment on or after 1st January 2007, or

(b) the person was paying contributions under regulation C9 of TPR 1997 or regulation 19 (election to pay contributions by a person serving in a reserve force) on or after that date.

(2) The average salary of a person (P) to whom this regulation applies is the greater of—

(a) P's relevant salary during the last 365 days of P's average salary service, and

(b) the average annual rate of P's relevant salary during P's best salary period multiplied by A/B.

(3) But if P has average salary service of less than 365 days, P's average salary is the average annual rate of P's relevant salary during such service.

(4) In calculating the period mentioned in paragraph (2), no account is to be taken of a leap day.

(5) But where P's average salary service ends on or after the leap-day in a leap year, account is to be taken of that leap day in calculating those periods.

(6) Except as provided in paragraphs (7) and (8), P's best salary period is the 1,095 consecutive days of P's average salary service falling within the period of 10 years ending on the last day of P's average salary service (the “10-year period”) during which P's increased relevant salary is the greatest.

(7) Where P has more than 365 and less than 1,095 days of average salary service falling within the 10-year period, P's best salary period is the number of days of P's average salary service falling within the 10-year period.

(8) Where P has more than 365 days of average salary service but has less than 365 days of average salary service falling within the 10-year period, P's best salary period is the last 365 days of P's average salary service.

(9) P's increased relevant salary during any period is P's relevant salary during that period calculated as if P's relevant salary during any relevant salary period were increased by the amount (if any) by which, immediately before the end of P's average salary service, it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the same day as the relevant salary period ended.

(10) In paragraph (9) a “relevant salary period” means a period during which the rate of P's relevant salary does not change.

(11) A is the average annual rate of P's increased relevant salary during the best salary period.

(12) B is the amount to which the average annual rate of P's relevant salary during the best salary period would have been increased up to the last day of P's average salary service if it had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the same day as the best salary period ended.