Powered by Lexis+®
Jurisdiction(s):
United Kingdom
CASE STUDY

“In some areas of research there were also significant time savings. You get to what you are looking for more quickly, which all goes to the value of the product.”

Harper Mcleod

Access all documents on Spiking

Spiking meaning

What does Spiking mean?
Spiking describes a situation in defined benefit (DB) pension schemes where a member’s pensionable pay is increased shortly before retirement, thereby boosting benefits calculated by reference to final pensionable salary. This may arise from taking additional duties or overtime, a late promotion, or the making of allowances or bonuses pensionable. The term is not defined in legislation or case law; it is a practitioner expression used in pensions administration, drafting and disputes. Because DB benefits in final-salary schemes are pay‑linked, trustees and employers typically manage spiking risk through scheme rules and public service regulations, including: tight definitions of pensionable pay that exclude irregular or discretionary elements; averaging methodologies (for example, best of the last three or several years); caps on pensionable increases; and requirements for employer certification or consent. In the UK and Irish public service, the shift to career average (CARE) schemes and specific regulatory controls reduce the scope for spiking. Legal significance includes: disputes over what counts as pensionable pay; funding and strain costs for employers; and, in the UK, potential Annual Allowance charges where a late pay rise causes a spike in DB pension input. Usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, though...
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

View the related News about Spiking

NEWS
UK corporate crime weekly: Crime and Policing Bill, sanctions/export controls, AML, MoJ computer evidence review, court fees, procedural changes, environmental enforcement, FCA fraud case—27 February 2025

In this issue: Investigating criminal conduct Criminal procedure and evidence Bribery, corruption, sanctions and export controls Consumer protection and cartels Environmental offences Financial services and pensions offences Health and safety and corporate manslaughter offences Insolvency offences and Companies Act offences Money laundering International Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Investigating criminal conduct Crime and Policing Bill introduced into Parliament The Home Office has confirmed that the Crime and Policing Bill is due to be laid before Parliament. Headline measures include a power for police to enter without a warrant to retrieve electronically tracked stolen goods, scrapping the £200 de facto threshold for prosecuting shop theft, and a bespoke assault offence to better protect retail staff. The Bill also establishes new crimes for spiking, child criminal exploitation, and recording intimate images without consent. It bolsters existing regimes on stalking,...

Read More Right Arrow

View the related Practice Notes about Spiking

PRACTICE NOTES
UK Insurance and Reinsurance Glossary for Lawyers: Legal, Regulatory, Market, Underwriting and Claims Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z This glossary provides helpful (re)insurance and underwriting definitions. For focused guidance on reinsurance terminology, see Practice Note: Reinsurance—essentials. A Accident An unforeseen or unintended event or incident that typically results in damage or injury (physical or financial) to the insured or a third party. Accidental damage Unintended or unexpected harm or damage caused to property or a person. Accidental death benefit Some life insurance policies pay an extra amount, over and above the original sum insured, if the insured dies because of an accident. Act of God (force majeure) An occurrence beyond anyone’s control, such as a natural disaster. Active underwriter The person with primary responsibility and authority to accept insurance and reinsurance risks on behalf of the members of a syndicate in the Lloyd’s market. See also Underwriter. Actuary A qualified professional who...

Read More Right Arrow