Paragraph 3 Meaning of “final pensionable earnings”F1

In this Schedule, “final pensionable earnings” in relation to a person (P) to whom this Schedule applies means the greater of—

This sub-paragraph applies where—

Where sub-paragraph (2) applies, the period of 12 months referred to in sub-paragraph (1)(a) shall be taken as being the period of 365 days plus the number of days during the period of unpaid leave or unpaid absence referred to in sub-paragraph (2)(b).

If the period of 365 days referred to in sub-paragraph (3) includes 29th February, that sub-paragraph has effect with the substitution for “365” of “366”.

For the purpose of sub-paragraph (1), P’s permanent pensionable earnings for any period include any assumed pay which P is treated as receiving during that period.

If P was in part-time service during any period which is relevant for the purpose of sub-paragraph (1), P’s final pensionable earnings are calculated as if P received the full-time rate during that period.

If P was not in scheme employment during the whole of the 12 month period referred to in sub-paragraph (1)(a), that sub-paragraph applies as if it referred to P’s annualised permanent pensionable earnings in P’s latest period of scheme employment ending with P’s last day of eligible service.

For the purposes of sub-paragraph (7), P’s annualised permanent pensionable earnings for a period are—

where–

• PPE is P’s permanent pensionable earnings for the period; and

• N is the number of days in the period.

If the period referred to in sub-paragraph (8) includes 29th February, sub-paragraph (8) has effect with the substitution for “365” of “366”.

Only pensionable earnings in P’s latest continuous period of service in scheme employment are to be taken into account for the purposes of sub-paragraph (1)(a) and (b).

In sub-paragraph (10), “continuous period of service in scheme employment” means a period of service in scheme employment disregarding any gap in service in scheme employment not exceeding 6 months.