In calculating best final remuneration, which remuneration element is eligible to be dynamised across the last three consecutive years?

In calculating best final remuneration, which remuneration element is eligible to be dynamised across the last three consecutive years?

• A. Benefits in kind
• B. Bonuses
• C. Remuneration received in the last 12 months
• D. Remuneration received in the last three consecutive years

Answer: (D)

Dynamising adjusts past pay to reflect wage growth over time, so the final remuneration uses a three-year window to level out changes in earnings. In the best final remuneration calculation, you apply the dynamisation process to the remuneration amounts that occurred over three consecutive years—the three-year window of cash pay. This provides a consistent basis to compare and select the highest three-year period. Other items like benefits in kind or bonuses are treated separately or are irregular, and using only the last 12 months wouldn’t give a three-year window. So, the remuneration element eligible to be dynamised across the last three consecutive years is the remuneration received in those three consecutive years.

Dynamising adjusts past pay to reflect wage growth over time, so the final remuneration uses a three-year window to level out changes in earnings. In the best final remuneration calculation, you apply the dynamisation process to the remuneration amounts that occurred over three consecutive years—the three-year window of cash pay. This provides a consistent basis to compare and select the highest three-year period. Other items like benefits in kind or bonuses are treated separately or are irregular, and using only the last 12 months wouldn’t give a three-year window. So, the remuneration element eligible to be dynamised across the last three consecutive years is the remuneration received in those three consecutive years.