If a benefit in kind is expressly provided on a pensionable basis, the scheme manager must determine whether the benefit forms part of the member’s permanent pensionable earnings or fluctuating pensionable earnings.

In this regulation—

• “benefit in kind” means anything other than money provided to a member of this scheme in connection with the member’s pensionable service;

• “money value”, in relation to a benefit in kind, means—

  1. a

     an amount determined by the employer in accordance with the arrangement under which the benefit is provided; or

  2. b

     otherwise, an amount determined by the scheme manager;

• “permanent pensionable earnings”, in respect of any period, means—

  1. a

     basic pay in respect of that period F1(not including pay received in respect of a period of sick leave on reduced pay at a rate determined by the member’s employer to be appropriate because it is equivalent to the annual rate of an ill-health pension) ;

  2. b

     any allowance granted on a permanent basis that the scheme manager determines to be permanent pensionable earnings in respect of that period; and

  3. c

     the money value of any benefit in kind that the scheme manager determines to be permanent pensionable earnings in respect of that period;

• “fluctuating pensionable earnings”, in respect of any period, means any of the following that the scheme manager determines to be fluctuating pensionable earnings in respect of that period—

  1. a

     any non-consolidated performance-related pay not forming part of basic pay;

  2. b

     any allowance not granted on a permanent basis; and

  3. c

     the money value of any benefit in kind.