Final salary - The basis of determining a person"s pension entitlement in a final salary scheme and which normally refers to an occupational pension. Final salary is defined as either:the total emoluments in a year, in any of the five years immediately preceding retirement, orthe average of total emoluments for periods of three consecutive years or more ending within ten years of retirement.Directors who own 20% or more of a company"s share capital must define their final salary according to 2. above.For people joining a scheme on or after 1st June 1989 (or 14th March 1989 if the scheme was new at that time) an earnings cap will apply which limits the final salary to be used for calculating benefits.
Final salary : the basis of determining a person"s pension entitlement in a final salary scheme and which normally refers to an occupational pension. final salary is defined as either:the total emoluments in a year, in any of the five years immediately preceding retirement, orthe average of total emoluments for periods of three consecutive years or more ending within ten years of retirement.directors who own 20% or more of a company"s share capital must define their final salary according to 2. above.for people joining a scheme on or after 1st june 1989 (or 14th march 1989 if the scheme was new at that time) an earnings cap will apply which limits the final salary to be used for calculating benefits.
Final salary