Salary used for 'Final Salary' pension

daddydodo

Hi, I'm after some advice on my OH pension. She works for DWP as civil servant and has 28yrs in the Classic pension and around 3yrs in the Alpha pension. Regarding the Classic final salary pension how is the final salary figure determined? Is it literally the salary at retirement, or are there conditions such as a minimum time on the final (or highest) salary?

Reason for the question is she has a temporary 6month promotion with 10% increase in salary and we'd like to know when this salary kicks in as the "final (highest)" salary and subsequently used for her pension calculation.

hugheskevi

Regarding the Classic final salary pension how is the final salary figure determined? Is it literally the salary at retirement, or are there conditions such as a minimum time on the final (or highest) salary?

Look at salary in the 12 months to the last day of service. Step back 91 days, look at salary in previous 12 months. Repeat step-backs until last 3 years of service has been considered.

Take highest figure from above (using cash figures no inflation adjustment).

If highest figure is earlier than 12 months to last day of service, adjust for inflation.