TPS Notional Pensionable Pay Proration for Mid-Period Changes

When an MCR service period includes an assumed pensionable pay absence and there is either, or both, an annual full-time salary change or FTE change from full-time to part-time (regular) or vice versa, the  notional pensionable pay reported on the resulting split rows must reflect the member’s unreduced pensionable earnings for the period of service the row relates to.

Run results, together with the pension scheme’s assumed pensionable pay balance, are used to determine the prorated notional pay value. If an earnings element is reported in the run results and it's also a feed to the assumed pensionable pay balance, it's included in the notional pensionable pay for the service period the row relates to. Otherwise, it's not included in the reported notional pensionable pay.

This proration method is used for both A and U lines.

The existing solution for NPP proration continues to be used for assumed pay split period scenarios when the member’s pay drops from full pay to reduced pay or from reduced pay to zero pay. In these cases, the NPP is prorated by multiplying the assumed pensionable balance by the total number of NPP days divided by the total numbers of days in the period.

In MCR split period scenarios, the notional pensionable pay value reported in data item 35 is prorated accurately to reflect the amount of unreduced pensionable pay the member would have received for the period of service the row of data relates to.

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