Projected Earnings

Currently, retirement calculations for active alpha members are based on the member’s pensionable earnings provided by your payroll interface to the Scheme Administrator at the time of calculation.

Since the Scheme Administrator does not hold earnings data from the last interface date to the member’s last day of service, this period is not included in the pension calculation. As a result, 100% of alpha benefits are revised after the final payroll interface.

From 20 November 2024, the Scheme Administrator will begin projecting a member’s earnings from the latest interface date to their last day of service when calculating alpha good health retirements only, i.e. this will exclude ill-health retirements. This change will provide members with more accurate pension quotes, enhancing their overall experience.

Detail:

For good health retirements, projected earnings represent the pensionable pay earned between two calculation dates. This is calculated using the pay data from your payroll interface and based on the assumption that no changes in pay data occur during this specific period.

The projected earnings calculation will use the following data to predict a member’s pensionable earnings between two calculation dates:

• Service History:
  This will be checked to determine if the member is currently on unpaid absence. If the member is on unpaid absence, earnings will not be projected and will only be based on the earnings received up to the date of absence.
• Salary History:
  The most recent notional pay will be used in the projected earnings calculation. There should be no end date, indicating that this is the pay moving forward. This will always reflect the full-time rate of pay.
• Allowance History:
  This will be reviewed to determine if any allowances should be added to the salary when calculating earnings. Any allowances without an end date and marked as ‘pensionable’ will be included in the calculation.
• Hours History:
  This will be checked to confirm the member’s most recent contractual hours and whether they are full-time or part-time. If the member is part-time, their salary will be pro-rated accordingly.

Actions:

There is no action for you to take. It will remain your responsibility to provide accurate and timely data to the Scheme Administrator.