Example of how my benefits are worked out

Example

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 5 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 £413.06  
2015/16 £20,400 £416.32 £413.06 £828.56
2016/17 £20,808 £424.65 £828.56 £1,284.54
2017/18 £21,224 £433.14 £1,284.54 £1,760.63
2018/19 £21,648 £441.80 £1,760.63 £2,257.50

The above is based on actual revaluation for 2014/15 and 2015/16 financial years.  It is assumed that his pay will increase each year by 2% throughout and cost of living will rise from 2016/17 by 2.5% each year. So the pension for the period from 1 April 2014 to 1 April 2019 is £2,257.50 a year.

For the membership before 1 April 2014, his benefits will be:

And for membership between 1 April 2008 and 31 March 2014:

Pension = final pay x membership x 1/60

Pension = £21,648 x 6 ÷ 60 = £2,164.80 a year

For membership before 1 April 2008:

Pension = final pay x membership x 1/80

Pension = £21,648 x 14 ÷ 80 = £3,788.40 a year

Lump sum = £3,788.40 x 3 = £11,365.20

So Bob's total benefit will be:

Pension = £8,210.70 a year (£2,257.50 + £3,788.40 + £2,164.80)

Lump sum = £11,365.20

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

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