Civil service pensions - inflation adjustment of pensionable pay?

Matthew1964

I'm in Premium, approaching retirement. As well as suffering pay restraint for 8 or 9 years, I've been at the top of my pay band for the last few years too, so I've been getting 0.5% rises for a few years.  My salary has risen by 5 or 6% since 2012.  Inflation has added maybe 20% to prices in that time.  Pensionable earnings can include the best 3-year average in the last 13 years.  My question is, in working out my best pensionable earnings, will the scheme add inflation to my pay from years back?  So could my pensionable earnings be 15% or so higher than my current pay?  That would be nice!  And relevant to very many civil servants, I'd guess.  Thank you.

Dox

No and no, as I suspect you already guessed!

hugheskevi

Matthew1964 said:

Pensionable earnings can include the best 3-year average in the last 13 years.  My question is, in working out my best pensionable earnings, will the scheme add inflation to my pay from years back?  So could my pensionable earnings be 15% or so higher than my current pay?  That would be nice!  And relevant to very many civil servants, I'd guess. 

In Premium, past years of earnings are adjusted by inflation before the best 3 year period is considered. So it is common for final pay to be higher than current pensionable pay.

For Classic members, the consideration of best year from last 3 years is done before inflation for past years is applied, so it is only if full-time equivalent pensionable earnings have declined that a prior year is used (if pay is level the most recent period is used). In that case, an inflation adjustment is added based on when the past period used was from.