Assumed pensionable pay (APP) is a notional pensionable pay figure that is used to ensure that a member's pension is not affected by any reduction to, or suspension of, their pensionable pay due to absences that are applicable to APP.
When should APP apply?
- sickness or injury
- child related leave
- ordinary maternity and Ordinary Adoption leave (normally first 26 weeks)
- paid Shared Parental Leave
- paternity Leave
- any periods of paid Additional Maternity or Adoption Leave (normally after week 26 up to week 39
- reserve Forces leave (if the employee, although eligible to be in the Armed Forces Pension Scheme during that period, has elected to remain a member of the LGPS
In these circumstances Assumed Pensionable Pay should be used, unless the Pensionable Pay received for any given day in that period is greater than the Assumed Pensionable Pay (e.g. pay from KIT, SPLIT or Stringer days).
When shouldn't APP apply?
- any period of unpaid additional maternity, paternity or adoption leave or unpaid shared parental leave available at the end of child related leave.
- authorised unpaid leave
- leave as a result of industrial action
This is treated as unpaid leave of absence and no APP accrues during these periods. However, members can buy back the amount of pension they lost during these periods by paying Additional Pension Contributions (APC). If this is done within 30 days of returning to work, the employer will meet 2/3rds of the cost. Buying back lost pension following a trade dispute would be at full cost to the employee.
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