We use the future salary assumption to determine the final pensionable salary for active final-salary scheme member. Unlike CETVs we calculate accrued benefits based on the final pensionable salary of the member, rather than their salary at date of the CETV. The date at which the final salary is calculated in shown in the Pension Details later in section 5, often it is three years after the calculation date.

Salaries grow for two reasons:

1. Increases in pay scales
2. Promotional increases or extra salary for special duties

Therefore the rate of growth in an individual's salary will over time be greater than the "pay increases" agreed between employers and their employees. So even if pay scales are frozen an individual might still earn increases in salary.

We generally set future salary increases for an individual near our assumption for the growth in National Average Earnings. Obviously individuals know far more about their potential salary potential and they may request figures on other assumptions of future salary growth, though we can not necessarily endorse them without documentary evidence for the alternative assumption.