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The Finance Section Glossary

Currently viewing the definition of: Final Salary


	The final salary calculation is used to dermine an employees pension entitlement from a defined benefit pension scheme. There are two methods to derive a member's final salary. The first takes the highest annual income from any of the five years prior to retirement. The second takes the average of three consecutive years from any of the ten years prior to retirement. Income is classed as total remuneration.

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