How are my deferred 2008 benefits calculated?
Your benefits are calculated as follows:
Pension: Final salary / 80 x Membership
Lumps sum: Final salary / 80 x Membership x 3
What counts as membership?
Your membership will normally include any of the following:
- How long you have been a member of the LGPS worked out in years and days, (not including membership for which you already receive an LGPS pension or hold another LGPS deferred benefit or membership from another job which you are still paying into the LGPS)
- Membership purchased by a transfer from another scheme
- Any extra membership you have bought with additional contributions or by converting in-house additional voluntary contributions (AVCs) into membership
What if I worked part time?
If you worked part time, your membership will most likely be different to your actual calendar length membership. This is because your membership is reduced to the proportion of full time hours that you worked, during that period.
For example, if you worked 16 hours a week in a job with a full time equivalent of 32 hours a week, for 10 years, your benefits would be calculated on 5 years membership. This is because you worked 50% of the full time equivalent hours.
If your hours have changed during your membership of the Scheme, your benefits will be calculated to reflect the changes. If you do not have any contractual hours, your membership for each year in the LGPS will be calculated on average weekly hours worked during each year.
What if I want a bigger lump sum?
You are able to give up some of your pension to provide a larger lump sum. 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.