Assumed pensionable pay

Your employer uses assumed pensionable pay (APP) to calculate pension increases for tier 1 or 2 ill health benefits. APP is your average pensionable pay before ill health retirement. They base this on:

• three months’ pay if you’re paid monthly
• 12 weeks’ pay if you’re not paid monthly.

Sometimes, your employer changes how they calculate APP. If:

• your pensionable pay decreases because you were off work, they use the average from the three months before the reduction.
• you were working reduced hours due to your condition, and an independent doctor confirms this, they calculate APP as if you hadn’t reduced your hours.