Final pay
Members who have service before 1 April 2014 will have pension rights under the final salary scheme. The definition of pay under the final salary scheme differs from the CARE pay you report each month.
You need to tell us, on your March i-Connect return, what your members' final pay figures were as at 31 March so that we can tell them the current value of their pension.
How to calculate final pay
You calculate final pay as an average of the whole-time equivalent salary over the period 1 April – 31 March. Do not include gaps for reduced pay or absence, or pro-rata the pay for part-time working.
Different additional elements of pay are pensionable under the 2007 Regulations. Check what is and isn't pensionable before adding additional pay elements (such as overtime) into final pay.
Final pay is not the member's salary as at 31 March.
What we will query
As part of the end of year checking process, we will query final pay when there is:
- a rise of more than 10%
- a decrease of more than 10%
- nil change - when we can see the pay has changed. Always include backdated pay awards
Final pay for year end - simple guide
| Do | Do not |
|---|---|
| Use full-time equivalent salary figures | Use Actual, part-time or term-time salary figures |
| Calculate the average over the period 1 April to 31 March | Provide the rate of pay at 31 March |
| Only include elements of pay which are pensionable under the 1997 regulations | Include elements of pay which are not pensionable under the 1997 regulations |
| Include overtime payments if they are contractual | Include overtime payments if they are not contractual |
| Get inflated for working over full-time hours | Provide scale point figures for anyone working more than full-time hours |
How to report final pay on i-Connect
- employers who upload their return to i-Connect: column BB
- employers who use the online return on i-Connect: input on the second page of your return in the last column