Assumed pensionable pay is a notional pay figure that employers must calculate when your pensionable pay is reduced because you are absent from work in certain circumstances, such as sickness or child related leave. This notional pay figure is used to make sure your pension benefits build up as if you were at work receiving normal pay.

Assumed pensionable pay is also used to work out:

  • any enhancement to your pension awarded as a result of ill health retirement
  • any lump sum death grant following death in service, and
  • any enhancement which is included in survivor benefits following death in service.