Example of how my deferred 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 7 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

£416.32

£413.06

£828.56

2016/17

£20,808

£424.65

£828.56

£1,265.75

2017/18

£21,224

£433.14

£1,265.74

£1,749.85

2018/19

£21,648

£441.80

£1,749.85

£2,244.25

2019/20

£21,081

£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 the 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.

For 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.