Your pension is payable from the Scheme Normal Retirement Age (NRA), the default age for the DB section is 65.
The calculation of your pension changed in April 2016 so your pension is split into two parts that are calculated separately and then added together to get your total pension.
The pension accrued prior to April 2016 was converted to a percentage of your Final Pensionable Earnings referred to as the Past Service Percentage. Your Past Service Percentage can be found on the Confirmation Statement that we sent to you in 2016, or it can also be found on the annual Benefit Statements which we provide you with each year. To calculate your pension for service prior to April 2016, we take the Past Service Percentage and multiply this by your current Final Pensionable Earnings.
The pension accrued after April 2016 is calculated as follows:
|
1/60th of Final Pensionable Earnings |
- |
1/60th of the Lower Earnings Limit |
X |
Post 2016 Pensionable Service |
Example:
Andrew is retiring at age 65 on 5 April 2023, his Final Pensionable Earnings are £28,000, his Past Service Percentage is 35% and the Lower Earnings Limit (LEL) is £6,396. As Andrew's retirement date is in the 2022/23 tax year the LEL for this year is used. The LEL remains at £6,396 for the 2023/24 tax year.
Andrew’s pension accrued prior to April 2016 is:
|
Final Pensionable Earnings |
X |
Past Service Percentage |
= |
Pension accrued to April 2016 |
|
£28,000.00 |
35% |
£9,800.00 |
As Andrew is retiring on 5 April 2023, he has completed 7 years exactly as only complete months are included in the calculation so his pension accrued after April 2016 is:
|
1/60th of Final Pensionable Earnings |
- |
1/60th of the Lower Earnings Limit |
X |
Post 2016 Pensionable Service |
= |
Pension accrued after April 2016 |
|
£466.67 |
£106.60 |
7 |
£2,520.49 |
So, Andrew's total pension is:
|
Pension accrued to April 2016 |
+ |
Pension accrued from April 2016 |
= |
Total pension |
|
£9,800.00 |
£2,520.49 |
£12,320.52 per year |
The total pension is rounded up so that it is divisible by 12.
If you are a reduced accrual member, please click here to see how your pension is calculated.
You may wish to delay your retirement until after your Normal Retirement Date. If so, you would continue to work until you notify the Company or they notify you. However, your benefits must be taken by age 75.