Should furlough pay be used to determine an employee’s contribution band?

Yes. If furlough pay forms all or part of a member’s pensionable pay it should be used to determine the employee contribution rate on 1 April 2020. It is also possible for an employer to reallocate a member to a different band during the year. If they do so, they must inform the member. Employers may wish to check their policy on allocation to contribution bands. See section 2.2 of the Employers’ Guide for more information on contribution banding.