Definitions for "Final Remuneration"
The amount of remuneration which the PSO will allow to be used to calculate maximum benefits from a pension arrangement. Can be defined as: Basic salary for any twelve months out of the five years before the retirement date, plus the average of any fluctuating earnings over a period of at least 3 consecutive years ending on the same day as the Basic Salary. The average of total earnings over any period of 3 or more consecutive years, ending in the last 10 years before the relevant date. (This method must be used for Controlling Directors and members earning in excess of £100,000, in any year since 5 April 1987). In addition, the Finance Act 1989 introduced an earnings cap for all post-14th March 1989 members.
The maximum earnings that can be used for the purpose of calculating maximum approvable pension benefits. It may include the value ofbenefits-in-kind as well as salary.
The term used by the Revenue for the maximum amount of earnings which it will permit to be used for the purpose of calculating maximum approvable benefits .The permissible alternatives are set out fully in the practice notes issued by the Retirement Benefits District of the Revenue Commissioners .