Copyright © Derbyshire County Council 2006 Example leaver form

Copyright © Derbyshire County Council 2006 Pensionable Pay (Care Pay) Actual Pensionable Pay (PP) (4a & 4a1) New 2014 career average pensionable pay definition 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

Copyright © Derbyshire County Council 2006 Pensionable Pay Assumed 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 scheme?showall=&start=5 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 the member’s employer determines there is a reasonable expectation that such a payment would be paid on a regular basis If APP spans the scheme year (to 31 st March) it is uprated by HM Treasury revaluation order

Copyright © Derbyshire County Council 2006 Assumed Pensionable Pay example OctoberNovemberDecemberJanuaryFebruaryMarch £1,500£1,750 (includes £250 lump sum payment as part of pay award) £1,550£1,250£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

Copyright © Derbyshire County Council 2006 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 20 th January we need to add an amount of APP into the CARE pay for the member. Annual rate of APP = £18,200 Actual Pay earned to 19 th 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, (APP for 12 days January plus February & March) = £18, Apportion methodAmount of APP to apportion to period of absence £18,200 X 71 OR 365 £3, (£18,200 X 2 months ) + (£ X 12 days) OR £3, (£18,200 X 2 months ) + ( X 9 days) £3,653.79

Copyright © Derbyshire County Council 2006 Pensionable Pay Final 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 31 st March, Full-Time employee. Pay rate to 30 th November = £18,000 pay rate change to £18,600 on 1 st 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 payNo daysFTE RateAmountActual pensionable payments received 01/04 – 30/11244£18,000£12,032.88£250 01/12 – 31/03121£18,600£6, Total£18, Final Pensionable Pay =£18, £250£ Does NOT Include Non-contractual Overtime Additional hours Does include Contractual Overtime

Copyright © Derbyshire County Council 2006 Example leaver form

Copyright © Derbyshire County Council 2006 Short leaver form

Copyright © Derbyshire County Council 2006 Leaver forms – additional pay information

Copyright © Derbyshire County Council 2006 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

Copyright © Derbyshire County Council 2006 Estimates Example estimate request

Copyright © Derbyshire County Council 2006 Estimates Example 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 PayPay rate from December = £18,600 per year Rate to be used to project pensionable pay (CARE) to estimated retirement date Final Pensionable PayFrom To FTE Pay No Days Pay for period 01/03/ /11/2014£18, £13, /12/ /02/2015£18,60090 £4, Total365 £18, Plus pensionable payment £250 Final Pensionable Pay £18,397.95