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Assumed pensionable pay (APP)

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. If the calculated APP figure is materially different from what the member would normally have received, then the employer may substitute a revised level of pay to reflect what the member would have normally 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. If the calculated APP figure is materially different from what the member would normally have received, then the employer may substitute a revised level of pay to reflect what the member would have normally received.

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. 

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