Backdated Pay

  • Answer:

    For a backdated payment that is due to a salary increase you would need to supply an update line(s) for each month containing:

    • Correct the full time annual salary
    • include the ‘BK’ indicator
    • ‘Actual pensionable pay’ is just the amount of the actual rise
    • Use the tier percentage for the current month
    • Use that tier to determine contributions for the ‘BK’ as well
    • Put the total contributions for the member on the line of service for the current month

  • Answer:

    This depends on the nature of the reason for the backdating of this allowance.

    If this allowance was previously agreed prior to the member commencing the work and is in effect a payment on completion of work that's backdated, then this isn’t the same as a backdated pay increase.

    If this allowance has been agreed after the member has completed the work and backdated to a prior date that results in an increase in their salary, then this can be done using the backdated pay increase, and contributions relating to this retrospective update can be ignored when calculating the contribution tier to use in the pay period. They can then be included when calculating the member contributions.

    Generally, TLR allowances are not to be treated as a backdated pay increases as the member usually agrees to this arrangement and pay allowance prior to undertaking the work.


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