Assumed Pensionable Pay (APP)
You must report Assumed Pensionable Pay (APP) to us if you have employees on:
- sick leave
- maternity leave
- adoption leave
- parental leave
APP is the notional pay figure you calculate when an employee's actual pay drops due to being off work.
We use the APP to ensure there are no long-term impacts to a member's pension while they are receiving reduced pay. Their pension keeps growing as if they were still receiving their normal pay.
How to calculate APP
The following calculations produce a fair notional amount that protects pension build‑up.
For monthly‑paid staff - average the pensionable pay from the 3 months before the reduction.
For weekly‑paid staff - average the pensionable pay from the 12 weeks before the reduction.
Read Away from work with reduced or no pay for more detailed guidance.
The LGPS website includes an eLearning covering the use and calculation of Assumed Pensionable Pay.
How to report APP on i-Connect
APP replaces the Pensionable Pay figure you'd normally submit.
- Update the monthly figure.
- Update the year‑to‑date totals.
- Report any service breaks via the i-Connect return.
Getting this right ensures smooth processing and avoids follow up questions later.
- provide clear information about the employee's circumstances
- double‑check your payroll system is calculating and reporting APP correctly
- sense check your totals — if something looks odd, it probably is