Example of how my benefits are worked out if I work part time

Sue works part time and earns £10,000 a year, as at April 2014, her full time equivalent pay is £20,000.

She has worked for 20 years before 1 April 2014 and will work for another seven years before she retires.

Sue has always worked half the hours of a full time colleague and so her membership used to work out her retirement benefits will be seven years before 1 April 2008 and three years after 1 April 2008.

For membership from 1 April 2014:

Year

Pensionable pay

Pension earned

Brought forward

Revalued value

2014/15

£10,000

£204.08

£0

£206.53

2015/16

£10,200

£208.16

£206.53

£414.28

2016/17

£10,404

£212.33

£414.28

£632.88

2017/18

£10,612

£216.57

£632.87

£874.93

2018/19

£10,824

£220.90

£874.93

£1,122.12

2019/20

£11,040

£225.31

£1,122.12

£1,370.34

2020/21

£11.261

£229.82

£1,370.34

£1,600.15

The above is based on actual revaluation for the financial years between 2014/15 and 2019/20. It is assumed that her pay will increase each year by 2% throughout

So the pension for the period from 1 April 2014 to 1 April 2021 is £1,600.15 a year.

For the membership between 1 April 2008 and 31 March 2014

Pension = final pay (full time equivalent) x membership (proportionate to part time hours) x 1/60

Pension = £22,523 x 3 ÷ 60 = £1,126.15 a year

For the membership before 1 April 2008

Pension = final pay (full time equivalent) x membership (proportionate to part time hours) x 1/80

Pension = £22,523 (full time equivalent) x 7 ÷ 80 = £1,970.76 a year

Lump sum = yearly pension x 3

Lump sum = £1,970.76 x 3 = £5,912.29

So Sue's total benefit will be:

Pension = £4,697.07 a year (£1,600.15 + £1,970.76 + £1,126.15)

Lump sum = £5,912.29

Sue can also choose to give up some of her pension for an even bigger lump sum.