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East Riding Pension Fund

Example Leaver Forms 2016/17

Training Guide

Prepared by: Joanne Goddard

Version: 1.1

ERPF Leaver Form Examples 2016/17

Contents

Introduction…………………………………………………………………………………………………..3

Example 1 – David Beckham (Basic Full-Time)……………………………………………….4

Example 2 – Victoria Beckham (Basic Part-Time)…………………………………………..6

Example 3 – Brooklyn Beckham (Change in FTE pay)……………………………………..8

Example 4 – Romeo Beckham (Assumed Pensionable Pay)……………………………10

Example 5 – Cruz Beckham (Not a Whole Year)…………………………………………….12

Example 6 – Harper Beckham (Casual)………………………………………………………….14

Example 7 – Tom Cruise (Strike Break)………………………………………………………….16

Example 8 – Katie Holmes (Sessional)……………………………………………………………18

Example 9 – Suri Holmes (Overtime)…………………………………………………………….20

Example 10 – Susan Boyle (Term Time)…………………………………………………………22

Example 11 – Jennifer Lopez (50-50 Scheme and APCs)………..………………….……24

Example 12 – Simon Cowell (Death in Service)……………………………………………….26

Frequently Asked Questions…………………………………………………………………………..28


INTRODUCTION

With the new LGPS regulations coming into force from 01 April 2014, the East Riding Pension Fund has had to revise all of its literature and forms to accommodate the changes. This document is simply to give you some examples on how to fill in the new leaver form.

Please see the “Leaver Form Guidance” training guide which goes into further detail about each section of the form. The website www.lgpsregs.org has the employers Payroll and HR guides which will give further technical information.

The amount of situations that an employer can come across would be endless – these examples are just to give you guidance in certain situations to see how each part of the form should be completed. This guide is only to offer assistance in how to complete the payroll page of the leaver form.

Also, this guide can only tell you what information is required – the East Riding Pension Fund has no access to your payroll records so cannot tell you where to gain this information from.

Due to the fact that the East Riding Pension Fund are not payroll experts, the Contracted Out earnings sections are not completed in these examples. Also, I have assumed that there are no Multiple Employments (unless the example states otherwise).

This document is designed to talk the employers through the leaver form for anybody who left between 01 April 2016 and 31 March 2017. If the member left in an earlier tax year, please complete the form as explained however leave the “1 April 2016 to DOL” fields blank.

Due to the changes in the Contracting Out status of the LGPS, you will see that the Contracted Out Earnings field for the 6 April 2016 to 5 April 2017 is no longer required. This is because with effect from 6 April 2016 the scheme is no longer contracted out so the earnings figure for this is no longer required. Please note that this information is still required for the earlier years in order to accurately calculate any refund due.

Also, you will notice that some sections have moved around compared to previous years. For example, the “Contractual Hours for the Final Year” section is now at the top of the form and will require completing in all cases – not just those who have benefits prior to April 2014.


Example 1 – David Beckham (Basic Full Time)

David ceased employment on 30 September 2016. He works full-time and is on an annual salary of £24,000. No extra’s in his pay. No increases in the final 24 months. Contribution rate of 6.5%.

To begin, we need to work out his monthly wage and contribution rate:Monthly salary = £24,000 / 12 = £2,000.00Contributions = 6.5% of £2,000 = £130.00

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£130.00 x 6) = £780.00 and the amount for 1 April 2015 to 31 March 2016 will be (£130.00 x 12) = £1,560.00

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£2,000 x 6) = £12,000.

and for 1 April 2015 to 31 March 2016 will be (£2,000 x 12) = £24,000

The Final Years Pay for the 2008 definition will run from 01/10/2015 to 30/09/2016.

The one year’s full time equivalent final pay will be £24,000 as there were no pay changes in the 12 months and the Actual rate of full-time equivalent pay on final day of membership will also be £24,000.


Employee leaver form (continued)(Post 31 March 2014 leavers)

Employee’s full name: David BeckhamPayroll Number (including pay source): 123456Date of leaving / opt out date: 30/09/2016 NI Number: AA112233A

Contractual Hours for the Final Year (please complete in all cases)

From To Actual hours worked (plus formula if applicable)Enter ‘C’ if casual FTE Hours

01/10/2015 30/09/2016 Full-time 37.00

Pay and Contribution DetailsContribution Details

BASIC pension contributions1 April 2016 to DOL £780.00

1 April 2015 to 31 March 2016 £1,560.00

Contracted out earnings between the lower and upper limits(up to 3 years needed if member has been in the scheme for less than 2 years at date of termination).Note: Contracted out ended on 5 April 2016.

6 April 2015 to 5 April 2016 £


6 April 2013 to 5 April 2014 £Additional Contributions (where relevant)

Added Years Contributions1 April 2016 to DOL £

1 April 2015 to 31 March 2016 £

Additional Regular Contributions (ARCs)1 April 2016 to DOL £

1 April 2015 to 31 March 2016 £

Additional Pension Contributions (APCs)1 April 2016 to DOL £

1 April 2015 to 31 March 2016 £Career Average Re-valued Earnings - CARE (2014 Scheme )

Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay1 April 2016 to DOL £12,000.00

1 April 2015 to 31 March 2016 £24,000.00

50/50 Section Cumulative Pensionable Pay/Assumed Pensionable Pay

1 April 2016 to DOL £

1 April 2015 to 31 March 2016 £

Assumed Pensionable Pay for Ill Health Retirements or Death in Service Cases £Final Pay (2008 definition) To be completed in all casesFinal Years Pay from : 01/10/2015 to : 30/09/2016

Please state one year’s full time equivalent final pay: £24,000.00

Actual rate of full time equivalent pay/salary on final day of membership: £24,000.00Multiple Concurrent EmploymentsIf the member has other pensionable employment(s) with you, which are continuing and have run concurrently, please provide the full time equivalent pay/salary in each post at the date of leaving this postJob Title: Pay: £Job Title: Pay: £


Example 2 – Victoria Beckham (Basic Part Time)

Victoria ceased employment on 19 November 2016. She works 18.50 hours a week (half-time) and is on a full-time equivalent annual salary of £22,000. No extra’s in her pay. No increases in the final 24 months. Contribution rate of 5.5%. She also has a second job that runs concurrently which she is not finishing. That is in an annual salary of £20,000.

To begin, we need to work out her monthly wage and contribution rate:Monthly salary = (£22,000 x 18.50/37.00) / 12 = £916.67Contributions = 5.5% of £916.67 = £50.42

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£50.42 x 7) + (£50.42 x 19/30) = £384.87 and the amount for 1 April 2015 to 31 March 2016 will be (£50.42 x 12) = £605.04

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£916.67 x 7) + (£916.67 x 19/30) = £6,997.25.

and for 1 April 2015 to 31 March 2016 will be (£916.67 x 12) = £11,000.04



Also, as she has a second job that is not ceasing, details of that post need to be included in the “Multiple Concurrent Employments” box.



Employee’s full name: Victoria BeckhamPayroll Number (including pay source): 987654Date of leaving / opt out date: 19/11/2016 NI Number: BB987654B



20/11/2015 19/11/2016 18.50 37.00



1 April 2015 to 31 March 2016 £605.04






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £11,000.04



1 April 2015 to 31 March 2016 £



Actual rate of full time equivalent pay/salary on final day of membership: £22,000.00Multiple Concurrent EmploymentsIf the member has other pensionable employment(s) with you, which are continuing and have run concurrently, please provide the full time equivalent pay/salary in each post at the date of leaving this postJob Title: Administrative Assistant Pay: £20,000.00Job Title: Pay: £


Example 3 - Brooklyn Beckham (Change in FTE pay)

Brooklyn ceased employment on 30 June 2016. He works full-time and is on an annual salary of £18,000. No extra’s in his pay. He increased from £15,000 to £18,000 on 01 January 2016. Contribution rate of 5.8%

To begin, we need to work out his monthly wage and contribution rate:

Monthly salary before increase = £15,000 / 12 = £1,250.00Contributions = 5.8% of £1,250 = £72.50

Monthly salary after increase = £18,000 / 12 = £1,500.00Contributions = 5.8% of £1,500 = £87.00

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£87.00 x 3) = £261.00 and the amount for 1 April 2015 to 31 March 2016 will be (£72.50 x 9) + (£87.00 x 3) = £913.50.

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£1,500.00 x 3) = £4,500.00.

and for 1 April 2015 to 31 March 2016 will be (£1,250.00 x 9) + (£1,500.00 x 3) = £15,750.00


The one year’s full time equivalent final pay will be (£15,000 x 6/12) + (£18,000 x 6/12) = £16,500 and the Actual rate of full-time equivalent pay on final day of membership will be £18,000.



Employee’s full name: Brooklyn BeckhamPayroll Number (including pay source): 147258Date of leaving / opt out date: 30/06/2016 NI Number: CC371955C



01/07/2015 30/06/2016 Full-time 37.00



1 April 2015 to 31 March 2016 £913.50






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £15,750.00



1 April 2015 to 31 March 2016 £





Example 4 - Romeo Beckham (Assumed Pensionable Pay - APP)

Romeo ceased employment on 31 August 2016. He works 30 hours a week and is on an annual full-time equivalent salary of £21,000. No extra’s in his pay. A pay award, increasing his pay from £20,000 to £21,000 was implemented from 01 April 2015. However, due to illness, he was on half-pay for the period 01 June 2015 to 31 December 2015. The member then went onto nil pay until he left. Contributions rate of 5.8%

To begin, we need to work out his monthly wage and contribution rate:

Monthly salary before 01 April 2015 = (£20,000 x 30.00/37.00) / 12 = £1,351.35Contributions = 5.8% of £1,351.35 = £78.38

Monthly salary between 01 April 2015 and 31 May 2015 = (£21,000 x 30.00/37.00) / 12 = £1,418.92Contributions = 5.8% of £1,418.92 = £82.30

Monthly salary on half pay = (£21,000/2 x 30.00/37.00) / 12 = £709.46Contributions = 5.8% of £675.68 = £41.15

The APP figure used for the ill health period is worked out as the last three months the member was paid their full wage (i.e. March, April and May 2015) averaged out and then applied into the half pay period. Therefore, the monthly APP figure will be ((£1,351.35 + £1,418.92 + £1,418.92) / 3) = £1,396.40.

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be nil, as the member was on nil pay and the amount for 1 April 2015 to 31 March 2016 will be (£82.30 x 2) + (£41.15 x 7) = £452.65.

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£1,396.40 x 5) = £6,982.00. (Five months on APP)

and for 1 April 2015 to 31 March 2016 will be (£1,418.92 x 2) + (£1,396.40 x 10) = £16,801.84 (Two months on normal pay and ten months on APP)


The one year’s full time equivalent final pay will be £21,000.00 as under the 2008 regulations, the final years pay is calculated as if the member was at work and there was no pay increases in the final 12 months. Also, the Actual rate of full-time equivalent pay on final day of membership will be £21,000.



Employee’s full name: Romeo BeckhamPayroll Number (including pay source): 321Date of leaving / opt out date: 31/08/2016 NI Number: DD991177D



01/09/2015 31/08/2016 30.00 37.00


BASIC pension contributions1 April 2016 to DOL £Nil

1 April 2015 to 31 March 2016 £452.65






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £16,801.84



1 April 2015 to 31 March 2016 £





Example 5 – Cruz Beckham (Not a Whole Year)

Cruz ceased employment on 31 December 2016. He started employment on 01 March 2016. He works 12 hours a week and is on an annual full-time equivalent salary of £36,000. No extra’s in his pay. No increases in salary. Contribution rate of 5.5%

To begin, we need to work out his monthly wage and contribution rate:Monthly salary = (£36,000 x 12.00/37.00) / 12 = £972.97Contributions = 5.5% of £972.97 = £53.51

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£53.51 x 9) = £481.59 and the amount for 1 April 2015 to 31 March 2016 will be (£53.51 x 1) = £53.51

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£972.97 x 9) = £8,756.73.

and for 1 April 2015 to 31 March 2016 will be (£972.97 x 1) = £972.97


The one year’s full time equivalent final pay will be (£36,000 x 10) = £30,000 which is then up-rated to a full year = £30,000 x 12/10 = £36,000. Also, the Actual rate of full-time equivalent pay on final day of membership will be £36,000.



Employee’s full name: Cruz BeckhamPayroll Number (including pay source): 45Date of leaving / opt out date: 31/12/2016 NI Number: AB134679C



01/03/2016 31/12/2016 12.00 37.00



1 April 2015 to 31 March 2016 £53.51






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £972.97



1 April 2015 to 31 March 2016 £





Example 6 – Harper Beckham (Casual)

Harper ceased employment on 31 October 2016. She worked on a casual basis. Her pays for the final 24 months were:

January 2015 – £1,045 January 2016 – £432February 2015 – £111 February 2016 - £88

March 2015 - £45 March 2016 - £461 April 2015 - £337 April 2016 - £0May 2015 - £728 May 2016 - £0June 2015 - £211 June 2016 - £285July 2015 - £0 July 2016 - £1,025August 2015 - £825 August 2016 - £8September 2015 - £218 September 2016 - £77October 2015 - £450 October 2016 - £407

November 2014 – £728 November 2015 – £192December 2014 – £197 December 2015 – £45

Her FTE rate of pay was £24,000 with no increases in the final 24 months. Contribution rate is 6.5%

Working backwards in this example, the “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be £1,802.00 and for 1 April 2015 to 31 March 2016 will be £3,650.00

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be 6.5% of £1,802.00 = £117.13 and the amount for 1 April 2015 to 31 March 2016 will be 6.5% of £3,650.00 = £237.25

Why do you not include the April 2015 payment? For most payroll systems, casuals are paid a month in arrears. This means that the £337 paid in April 2015 will be for work done in March 2015. Therefore, this figure would be used in the 2014/15 tax year.





Employee’s full name: Harper BeckhamPayroll Number (including pay source): 99Date of leaving / opt out date: 31/10/2016 NI Number: CD735591A



01/11/2015 31/10/2016 Casual 37.00



1 April 2015 to 31 March 2016 £237.25






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £3,650.00



1 April 2015 to 31 March 2016 £





Example 7 – Tom Cruise (Strike Break)

Tom ceased employment on 15 August 2016. He works 5 hours a week and is on an annual full-time equivalent salary of £14,000. No extras in his pay. No increases in salary. However, he was on strike on 10 November 2015 (and did not elect to pay it back). Contribution rate of 5.5%

To begin, we need to work out his monthly wage and contribution rate:Monthly salary = (£14,000 x 5.00/37.00) / 12 = £157.66Contributions = 5.5% of £157.66 = £8.67

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£8.67 x 4) + (£8.67 x 15/31) = £38.88 and the amount for 1 April 2015 to 31 March 2016 will be (£8.67 x 12) = £104.04 – less the contributions for the strike day, which I have calculated as (£8.67 x 1/30 = £0.29) so the amount of contributions is £103.75.

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£157.66 x 4) + (£157.66 x 15/31) = £706.93.

and for 1 April 2015 to 31 March 2016 will be (£157.66 x 12) = £1,891.92 – less the pay for the strike day, which I have calculated as (£157.66 x 1/30 = £5.26) so the amount of pay is £1,886.66

If the member took out an APC contract to buy back the “lost” pension, then the calculation is still exactly the same. This is because the APC contract adds back on the lost pension, so if you were to include the lost pay figure, the member would be getting this portion twice.



If there was a pay increase in the final 12 months, please see the “Frequently Asked Questions” section for more information about how the above calculation would change.



Employee’s full name: Tom CruisePayroll Number (including pay source): 1456Date of leaving / opt out date: 15/08/2016 NI Number: AC643197B



16/08/2015 15/08/2016 5.00 37.00



1 April 2015 to 31 March 2016 £103.75






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £



Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay1 April 2016 to DOL £706.93

1 April 2015 to 31 March 2016 £1,886.66



1 April 2015 to 31 March 2016 £





Example 8 – Katie Holmes (Sessional)

Katie ceased employment on 24 September 2016. She worked as a canvasser. Her pays for the final 24 months were:

January 2015 - £0 January 2016 - £0February 2015 - £45 February 2016 - £45

March 2015 - £0 March 2016 - £0 April 2015 - £0 April 2016 - £50May 2015 - £0 May 2016 - £0June 2015 - £0 June 2016 - £10July 2015 - £0 July 2016 - £0August 2015 - £400 August 2016 - £0September 2015 - £0 September 2016 - £120

October 2014 – £0 October 2015 – £0November 2014 – £0 November 2015 – £10December 2014 – £0 December 2015 – £250

Contribution rate is 5.5%

Working backwards in this example, the “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be £130.00 and for 1 April 2015 to 31 March 2016 will be £755.00.

The “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be 5.5% of £130.00 = £7.15 and the amount for 1 April 2015 to 31 March 2016 will be 5.5% of £755.00 = £41.53

Why do you not include the April 2016 payment in the 2016/17 year? For most payroll systems, sessionals are paid a month in arrears. This means that the £50 paid in April 2016 will be for work done in March 2016. Therefore, this figure would be used in the 2015/16 tax year.


The one year’s full time equivalent final pay will be £485. Sessionals do not have an hourly or annual rate of pay – they are simply paid for the work they do irrespective of how long it takes them. You do not need to quote an Actual rate of full-time equivalent pay on final day of membership.



Employee’s full name: Katie HolmesPayroll Number (including pay source): 1869Date of leaving / opt out date: 24/09/2016 NI Number: BD145615A



25/09/2015 24/09/2016 Sessional



1 April 2015 to 31 March 2016 £41.53






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £755.00



1 April 2015 to 31 March 2016 £


Please state one year’s full time equivalent final pay: £485.00

Actual rate of full time equivalent pay/salary on final day of membership: £Multiple Concurrent EmploymentsIf the member has other pensionable employment(s) with you, which are continuing and have run concurrently, please provide the full time equivalent pay/salary in each post at the date of leaving this postJob Title: Pay: £Job Title: Pay: £


Example 9 – Suri Holmes (Overtime)

Suri ceased employment on 31 May 2016. She works full-time and is on an annual salary of £30,000. No extra’s in her pay. No increase in pay in the final year. Contribution rate of 6.5%. She did work non-contractual overtime in her final years. Amounts (and contributions deducted) as followed were paid:

September 2014 - £100 (£6.50) January 2015 - £175 (£11.38) February 2016 - £200 (£13.00)December 2014 - £75 (£4.88) March 2015 - £65 (£4.23) May 2016 - £200 (£13.00)

April 2015 - £100 (£6.50)May 2015 - £25 (£1.63)August 2015 - £80 (£5.20)

To begin, we need to work out her monthly wage and contribution before overtime:Monthly salary = £30,000 / 12 = £2,500.00Contributions = 6.5% of £2,500 = £162.50

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£162.50 x 2) plus the overtime paid for May 2016 = £325.00 + £13.00 = £338.00

The amount for 1 April 2015 to 31 March 2016 will be (£162.50 x 12) plus the overtime paid for May 2015, August 2015 and February 2016 = £1,950.00 + £19.83 = £1,969.83.

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£2,500 x 2) + (£200 Overtime for May 2016) = £5,200.00.

and for 1 April 2015 to 31 March 2016 will be (£2,500 x 12)+ (£25 + £80 + £200 Overtimes) = £30,305.00

Why did you not include April 2015’s Overtime? For most payroll systems, overtime is paid a month in arrears. This means that the £100 paid in April 2015 will be for work done in March 2015. Therefore, this figure would be used in the 2014/15 tax year.



Remember – do not include the non contractual overtime in the 2008 Final Pay figures.



Employee’s full name: Suri HolmesPayroll Number (including pay source): 15863Date of leaving / opt out date: 31/05/2016 NI Number: AD198822B



01/06/2015 31/05/2016 Full-time 37.00



1 April 2015 to 31 March 2016 £1,969.83






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £30,305.00



1 April 2015 to 31 March 2016 £





Example 10 – Susan Boyle (Term Time)

Susan ceased employment on 31 August 2016. She works 18.50 hours a week on a term time formula of 190/225. She is on a full-time equivalent pay of £18,000, which increased to £19,000 on 01 April 2016. No extra in her pay. Contribution rate of 5.5%. Susan also pays £50 per month towards an ARC contract and has been since 2010.

To begin, we need to work out her monthly wage and contribution rate:

Monthly salary before increase= (£18,000 x 18.50/37.00 x 190/225) / 12 = £633.33Contributions = 5.5% of £633.33 = £34.83

Monthly salary after increase= (£19,000 x 18.50/37.00 x 190/225) / 12 = £668.52Contributions = 5.5% of £668.52 = £36.77

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£36.77 x 5) = £183.85 and the amount for 1 April 2015 to 31 March 2016 will be (£34.83 x 12) = £417.96.

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£668.52 x 5) = £3,342.60.

and for 1 April 2015 to 31 March 2016 will be (£633.33 x 12) = £7,599.96

What about the term time formula adjustment? If you are paying this, then simply add the adjustment payment onto the Main Section pay figure – you do not need to include it in the 2008 pay figures.


The one year’s full time equivalent final pay will be: ((£18,000 x 190/225 x 7/12) + (£19,000 x 190/225 x 5/12)) = £15,551.85.

The Actual rate of full-time equivalent pay on final day of membership will be (£19,000 x 190/225) = £16,044.44.

Also, as the member is paying £50 per month in ARC contributions, this will need adding onto the form:

Additional Regular Contributions (ARCs) 1 April 2016 to DOL = £50.00 x 5 = £250.001 April 2015 to 31 March 2016 = £50.00 x 12 = £600.00



Employee’s full name: Susan BoylePayroll Number (including pay source): 193728Date of leaving / opt out date: 31/08/2016 NI Number: BC111666D



01/09/2015 31/08/2016 18.50 37.00



1 April 2015 to 31 March 2016 £417.96






1 April 2015 to 31 March 2016 £

Additional Regular Contributions (ARCs)1 April 2016 to DOL £250.00

1 April 2015 to 31 March 2016 £600.00




1 April 2015 to 31 March 2016 £7,599.96



1 April 2015 to 31 March 2016 £





Example 11 – Jennifer Lopez (50-50 Scheme and APC)

Jennifer ceased employment on 15 January 2017. She works 20 hours a week. She is on a full time equivalent pay of £35,000. No extras in her pay. No increases in salary. However, she joined the 50/50 scheme with effect from 01 January 2016. She also had £80 deducted to buy back an authorised absence from 2014. This amount was deducted from her June 2016’s wage. Contribution rate of 5.8%.

To begin, we work out her monthly wage and contribution rate:

Monthly salary = (£35,000 x 20.00/37.00) / 12 = £1,576.58Contributions (Main Scheme) = 5.8% of £1,576.58 = £91.44Contributions (50/50 Scheme) = 2.9% of £1,576.58 = £45.72

So, for the leaver form, the “Basic pension contributions” paid in the financial year 1 April 2016 to DOL will be (£45.72 x 9) + (£45.72 x 15/31) = £433.60 and the amount for 1 April 2015 to 31 March 2016 will be (£91.44 x 9) + (£45.72 x 3) = £960.12.

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be £0.00 as the member was in the 50/50 scheme for the full year. 1 April 2015 to 31 March 2016 will be (£1,576.58 x 9) = £14,189.22.

The “50/50 Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£1,576.58 x 9) + (£1,576.58 x 15/31) = £14,952.08. For the 1 April 2015 to 31 March 2016, it will be (£1,576.58 x 3) = £4,729.74.


The one year’s full time equivalent final pay will be £35,000 as there were no pay changes in the 12 months and the Actual rate of full time equivalent pay on the final day of membership will also be £35,000.

Also, as the member paid £80.00 in an APC contribution, this will need adding onto the form:

Additional Pension Contributions (APCs) 1 April 2016 to DOL = £80.00 1 April 2015 to 31 March 2016 = £0.00

The APC payment is noted in the year it was paid – not the year from which the absence was. For example, even if the absence was in the 2015/16 year but the member repaid this in the 2016/17 year, you would still note this in the 2016/17 year box.



Employee’s full name: Jennifer LopezPayroll Number (including pay source): 468156156Date of leaving / opt out date: 15/01/2017 NI Number: BB145613A



16/01/2016 15/01/2017 20.00 37.00



1 April 2015 to 31 March 2016 £960.12






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £

Additional Pension Contributions (APCs)1 April 2016 to DOL £80.00

1 April 2015 to 31 March 2016 £0.00Career Average Re-valued Earnings - CARE (2014 Scheme )


1 April 2015 to 31 March 2016 £14,189.22


1 April 2016 to DOL £14,952.08

1 April 2015 to 31 March 2016 £4,729.74





Example 12 – Simon Cowell (Death in Service)

Simon died in service on 28 October 2016. He worked 25 hours a week on a full-time equivalent salary of £17,000. He was receiving a regular £100 per month for weekend work. On top of this, he received the following payments (and contributions deducted) for overtime worked:

May 2015 - £500 (£27.50) March 2016 - £250 (£13.75)August 2015 - £200 (£11.00) June 2016 - £50 (£2.75)October 2015 - £200 (£11.00) September 2016 - £150 (£8.25)December 2015 - £300 (£16.50)

No increase in pay in the last two years. Contribution rate of 5.5%. No half pay for sickness before death.

To begin, we need to work out his monthly wage and contribution before the overtime:Monthly salary = (£17,000 x 25.00/37.00) / 12 = £957.21 plus the regular £100.00 = £1,057.21Contributions = 5.5% of £1,057.21 = £58.15

So, for the leaver form, the “BASIC pension contributions” paid in the financial year 1 April 2016 to DOL will be (£58.15 x 6) + (£58.15 x 28/31) plus the overtime paid for June and September 2016 = £401.42 + £11.00 = £412.42 and the amount for 1 April 2015 to 31 March 2016 will be (£58.15 x 12) plus the overtime for May, August, October, December 2015 and March 2016 = £697.80 + £79.75 = £777.55

The “Main Section Cumulative Pensionable Pay/Assumed Pensionable Pay” for 1 April 2016 to DOL will be (£1,057.21 x 6) + (£1,057.21 x 28/31) + £50.00 + £150.00 = £7,498.16.

and for 1 April 2015 to 31 March 2016 will be (£1,057.21 x 12) + £500.00 + £200.00 + £200.00 + £300.00 + £250.00 = £14,136.52

As the member died in service, the “Assumed Pensionable Pay for Ill Health Retirements and Death in Service” needs completing. The APP is worked out averaging the last three full months (July, August and September), including any overtime paid and then up-rating this figure to a full year.

(£1,057.21 + £1,057.21 + £1,207.21) / 3 = £1,107.21£1,107.21 x 12 = £13,286.52


The one year’s full time equivalent final pay will be (£17,000 + (12 x £100.00)) = £18,200 as there were no pay changes in the 12 months and the Actual rate of full-time equivalent pay on final day of membership will also be £18,200.

Remember – do not include the non-contractual overtime in the 2008 Final Pay figures.



Employee’s full name: Simon CowellPayroll Number (including pay source): 666Date of leaving / opt out date: 28/10/2016 NI Number: CC145615D



29/10/2015 28/10/2016 25.00 37.00



1 April 2015 to 31 March 2016 £777.55






1 April 2015 to 31 March 2016 £


1 April 2015 to 31 March 2016 £




1 April 2015 to 31 March 2016 £14,136.52



1 April 2015 to 31 March 2016 £





Frequently Asked Questions

1. What about the recent non-consolidated pay award?

In the 2014/15 pay award, an additional payment was also made to staff. This was a pensionable figure so the question is – where should this be included in the leaver form? The figure needs adding into both the CARE pay figures and the 2008 definition pay figure.

2. What about the strike days where there is a pay award in that year?

If the member had a pay increase in the final 12 months, you will need to apply the 2008 regulations to the final years pay calculation. For example, if a member was on £16,000 (FTE) for six months of the final year and £18,000 (FTE) for the other six months AND the member was not on strike or bought back the strike day, then the one year’s final pay calculation will be:

(£16,000 x 6/12) + (£18,000 x 6/12) = £17,000

If the member had a strike break in the first half of the year AND did not buy it back, then the calculation will be:

((£16,000 x 5/12) + (£16,000 x (30/31)/12)) + ((£18,000 x 6/12) = £7,956.99 + £9,000.00 = £16,956.99

However, this is only for 364 days of the final year, so you will need to up-rate this to 365 days:

£16,956.99 x 365/364 = £17,003.58

If the member had a strike break in the second half of the year AND did not buy it back, then the calculation will be:

(£16,000 x 6/12) + ((£18,000 x 5/12) + (£18,000 x (30/31)/12)) = £8,000.00 + £8,951.61 = £16,951.61

However, this is only for 364 days of the final year, so you will need to up-rate this to 365 days:

£16,951.61 x 365/364 = £16,998.18

3. Why do we not include the absence period if the member has bought it back with an APC?

When an employee takes out an APC, this is then added into their benefits as an “extra pension amount”. For example, if you quote that somebody has had £100 of lost pay then they have lost £2.04 of annual pension. This is simply worked out as (£100/49).


Pensions will then add this into the members pension account as an “additional amount”. If you were to also include the £100 of lost pay in the leaver form, then they will be receiving the £2.04 twice – once in the normal benefits and also with the additional amount pension have added into their pot.

4. Do you always include any extras in the APP calculation?

Not always. If there are any regular, monthly payments that the member receives, these are included in the three month averaging. If there are any single or annual payments made, these are not included in the averaging out.

For example: A monthly paid employee has received the following pensionable pay in the three complete months prior to the relevant event.

Month 1 - £1,400

Month 2 - £2,500 (including a £1,000 regular bonus and £100 overtime)

Month 3 - £1,400

The calculation of APP is as follows:

Annual rate of APP = (£1,400 + £1,500 + £1,400)/3 *12) = £17,200

Note that the £1,000 bonus is removed prior to the averaging and grossing up calculation. As to whether you then add these figures only the annual APP figure is an employer decision and something you must make a policy on. The ERPF does not need to know this policy however employers must make a decision on this to ensure it is consistent across all cases.

5. Do you include any pay awards in the APP calculation?

Once members benefits are worked out using the APP, pay awards are not included in this figure. So, for example, if a member goes onto reduced pay on 01 January 2015 and a pay award is arranged from 01 April 2015, this is not applied to the members APP calculation.

The regulations state that, for those staff on long term sick, the APP is increased in line with inflation (not paywards) once a member crosses their second 31 March whilst on reduced/nil pay. So, in the above example, the APP figure would be increased in line with inflation from 01 April 2016.

6. I have an employee who went off on full pay sickness for a period of time but only received their basic pay and not the extras. When they go down to half pay, can I use a three month average when they were receiving extras?

The regulations state that you must use the three months preceding a reduction in their contractual pay. Therefore, here it would depend on whether those extras were contractual or not. For example, a member goes onto full pay (without extras) on 01 June. They then go down to half pay on 01 December.

If the extras are contractual, then you would use March, April and May pay figures and apply the APP from June onwards.

If the extras are not contractual, then you would use September, October and November pay figures and apply the APP from December onwards.


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