Pensionable Pay

Final Pensionable Pay

The Final Pensionable Pay balance is used to calculate pay for the previous final salary pension scheme. There may be some pensionable earnings that you will want to exclude from the feed if they aren’t applicable under the rules of the final salary scheme.

The balance is also used to calculate the full-time equivalent (FTE) amount for employees who had membership of the final salary scheme and who are approaching retirement.

Permanent Pensionable Pay

The Permanent Pensionable Pay balance is used to calculate pay for the main CARE pension scheme, and is therefore in accordance with current rules. There may be some pensionable earnings that you want to exclude from the feed, if they aren’t applicable under the rules of the current scheme.

Employee contributions are calculated using bands that are based on the employee’s annual pensionable pay. The Permanent Pensionable Pay balance period-to-date (PTD) figure is annualized in the payroll process, based on periodicity, to reach that annual figure. The range values in the employee rate calculation value definition are checked against that annual figure and the relevant percentage is applied. Permanent pensionable earnings can vary by month or a different frequency and therefore the annual pensionable pay and employee contribution rate will vary accordingly.

The Permanent Pensionable Pay Balance is also used for periods with an absence where there are days with normal eligible compensation and days with reduced or zero compensation due to an absence (e.g. sickness) in the same period. For such cases, the employer contributions are calculated on prorated values of Permanent Pensionable Pay and prorated Assumed Pensionable Pay.

The Permanent Pensionable Pay will be calculated based on a frequency (monthly, quarterly, semi-annually or annually) as available on the Public Sector Payroll Information calculation card. But it is also possible to set an annualized permanent pensionable pay override for the employee on the Benefits and Pension card. You can find more details in topic Manual Enrolment of an Employee into a Local Government Pension Scheme.

The Final Pensionable Pay and Permanent Pensionable Pay balance feeds may or may not differ. Both balances are required because pensionable pay is reported separately for both the final salary and CARE pension schemes.