Example of how my benefits are worked out
Bob earns £20,000 a year as at April 2014.
Bob has built up 20 years membership before 1 April 2014 and will build up another seven years membership in the Scheme before he retires.
For membership from 1 April 2014:
|
Year |
Pensionable pay |
Pension earned |
Brought forward |
Revalued value |
|
2014/15 |
£20,000 |
£408.16 |
£0 |
£413.06 |
|
2015/16 |
£20,400 |
£416.33 |
£413.06 |
£828.56 |
|
2016/17 |
£20,808 |
£424.65 |
£828.56 |
£1,265.75 |
|
2017/18 |
£21,224 |
£433.14 |
£1,265.75 |
£1,749.85 |
|
2018/19 |
£21,648 |
£441.80 |
£1,749.85 |
£2,244.25 |
|
2019/20 |
£22,081 |
£450.63 |
£2,244.25 |
£2,740.69 |
|
2020/21 |
£22,523 |
£459.65 |
£2,740.69 |
£3,200.35 |
The above is based on actual revaluation for financial years between 2014/15 and 2019/20. It is assumed that his pay will increase each year by 2% throughout.
So the pension for the period from 1 April 2014 to 1 April 2021 is £3,200.35 a year.
Membership between 1 April 2008 and 31 March 2014:
Pension = final pay x membership x 1/60
Pension = £22,523 x 6 ÷ 60 = £2,252.30 a year
For membership before 1 April 2008:
Pension = final pay x membership x 1/80
Pension = £22,523 x 14 ÷ 80 = £3,941.53 a year
Lump sum = £3,941.53 x 3 = £11,824.58
So Bob's total benefit will be:
Pension = £9,394.17 a year (£3,200.35 + £3,941.53 + £2,252.30)
Lump sum = £11,824.58
Bob can also choose to give up some of his pension for an even bigger lump sum