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Nilgosc


Assumed Pensionable Pay (APP)

Examples of APP Calculations


The following examples indicate how APP is calculated for a range of employment types as well as illustrating the different method of calculating APP for ill-health enhancement or death benefits.  Sample extracts of completed LGS15s are included after each example.                                     

APP for adding to cumulative pay

APP is the average pensionable pay for the 3 months/12 weeks before the start of the pay period when reduced/ no pay, child-related leave etc began, less non-regular lump sums.  This figure is then grossed up to the annual rate plus any regular lump sums received.

APP for ill-health enhancement/ death in service

APP is the average pensionable pay for the 3 months/12 weeks before the start of the pay period when the ill-health or death occurred (including any APP credited to the cumulative), less non-regular lump sums.  This figure is then grossed up to the annual rate plus any regular lump sums received.