Lump sums for people at the range maximum: how large, and do they count for pension?

Ours is 50% of the forgone amount. The reasoning was that a lump sum is not repeated automatically, so paying the full value each year gives the same cash without the organisation carrying a fixed cost, and the committee wanted some visible difference from a base increase.

On pension, get proper advice for your own scheme rules before deciding. In our defined benefit section the definition of pensionable pay was wide enough that we had to amend the scheme documentation before making the lump sum non-pensionable. It delayed us by a year.

A dissenting view. If 6% of people are at the maximum and performing well, I would first ask whether some of them are in the wrong grade. We found a fifth of ours were doing work that had grown beyond the level, and regrading was the honest answer.