UK TPS Lunar Payroll Support

Teachers’ pension calculations can now be based on a lunar payroll, including permanent pensionable pay, in order to derive the tier rate, and assumed pensionable pay.

Lunar payroll norms imply the following:

• The Annualized Pensionable Pay = periodic permanent pensionable pay / 4 weeks per period * 52 weeks per year
• There will always be 13 payroll runs per year

For example:

Annual salary is 52,000 (including any allowances) all elements feeding Permanent Pensionable Pay balance. If on a Monthly periodicity the monthly Permanent Pensionable Pay would be 4,333.33, Annualized Pensionable Pay = 4,333.33 x 12 (months) = 52,000 (ignoring rounding)

If on a Lunar periodicity the periodic Permanent Pensionable Pay would be 4,000, Annualized Pensionable Pay = 4,000/4 x 52 (weeks) = 52,000 (ignoring rounding) or 4,000 * 13 (periods) = 52,000 (ignoring rounding)

Note:

• All proration divisors are 28 days (= 4 weeks) and multipliers are 13 (lunar periods)
• The TPS assumed pensionable pay is calculated on a period basis.

Using the benefits and pensions calculation card you can now override both permanent pensionable pay and assumed pensionable pay.

Legislatively compliant calculation of Teachers' Pension for members of the scheme on a lunar payroll.

Steps to Enable

You don't need to do anything to enable this feature.