How is my pension calculated?
Depending on when you joined the scheme, your pension may be based on two different calculations. The following is a summary of those calculations and for which period they apply.
Pension benefits built up before 1 April 2008
Pensions built up before this date are based on 1/80th of a member's final salary multiplied by their membership before 1 April 2008. In addition to this, the benefits a member receives will also include an automatic tax-free lump sum worth 3 times their pension.
Final salary / 80 x Membership
Pension benefits built up from 1 April 2008 to 31 March 2014
Benefits built up between these dates are based on 1/60th of a member's final salary multiplied by their membership between 1 April 2008 to 31 March 2014.
Final salary / 60 x Membership
Pension benefits built up from 1 April 2014
Benefits built up from 1 April 2014 are based on 1/49th of a member's pensionable pay, for each year of membership. At the end of each year, the benefits are then adjusted to take into account the cost of living. The same thing then happens for each year of membership.
Pensionable pay for the year / 49 + cost of living adjustment
Since 1 April, members have also had the option of joining the 50/50 section of the Scheme. In this section of the Scheme, benefits are based on 1/98th of a member's pensionable pay, for each year of membership in this section of the Scheme. The benefits are still adjusted at the end of the year to take into account the cost of living.
Pensionable pay for the year / 98 + cost of living adjustment
There is no automatic lump sum for membership after 31 March 2008 but you can choose to give up some of your pension to provide a lump sum for this period of membership. For each £1 of pension you give up, you will receive £12 added to your lump sum. This is subject to HMRC restrictions and we will let you know what your options are, when you reach retirement.