Assumed Pensionable Pay
Assumed Pensionable Pay is used to work out the increase to your pension when you are awarded ill health benefits. Assumed Pensionable Pay is the average pay you receive in the period before you leave due to ill health retirement. It is based on three months’ pay if you are paid monthly or 12 weeks’ pay if you are not paid monthly.
There are sometimes adjustments to the calculation of Assumed Pensionable Pay:
- If the pay you received in the period leading up to your leaving date is materially higher or lower than the pay you would normally receive, your employer can use a higher or lower pay to work out your Assumed Pensionable Pay.
- You may have been working reduced hours in the period leading up to your leaving date. If you did reduce your working hours because of ill health, your employer will work out your Assumed Pensionable Pay based on the pay you would have received if your hours had not been reduced.