How are my deferred benefits worked out?

Any pension built up in the scheme from 1st April 2015 will be on a Career Average Revalued Earnings (or CARE) basis. 

If you have membership before 1 April 2015, your pension is worked out using your final pay and your membership.

 

What if I work part time or term time?

If you work part time or term time your pay used to work out your benefits for membership before 1 April 2015 will be your full time equivalent rate. Your membership will be proportionate based on the actual hours you worked. For membership after 1 April 2015 your pension account will be based on the actual pay from which your pension contributions were deducted.

For membership from 1 April 2015:

Year

Pensionable pay

Pension earned

Brought forward

Revalued value

2015/16

£20,000

£408.16

£0

£407.76 

2016/17

£20,400

£416.32

£407.76

£832.32

2017/18

£20,808

£424.65

£832.321

£1,294.68

2018/19

£21,224

£433.14

£1,294.68

£1,769.30

2019/20

£21,648

£441.80

£1,769.30

£2,248.68

2020/21

£22,081

£450.63

£2,248.68

£2,699.31

The above is based on actual revaluation for financial years between 2015/16 and 2019/20. It is assumed that his pay will increase each year by 2% throughout.

So the pension for the period from 1 April 2015 to 1 April 2021 is £2,699.31 a year.

For the membership between 1 April 2009 and 31 March 2015:

Pension = final pay x membership x 1/60

Pension = £22,081 x 6 ÷ 60 = £2,208.10 a year

 

For membership before 1 April 2009:

Pension = final pay x membership x 1/80

Pension = £22,081 x 14 ÷ 80 = £3,864.18 a year

Lump sum = £3,864.18 x 3 = £11,592.53

 

So Bob's total benefit will be:

Pension = £8,771.59 a year (£2,699.31 + £3,864.18 + £2,208.10)

Lump sum = £11,592.53

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

For membership from 1 April 2015:

Year 

Pensionable pay 

Pension earned  

Brought forward 

Revalued value 

2015/16 

£10,000 

£204.08 

£0 

£203.88 

2016/17 

£10,200 

£208.16 

£203.88 

£416.16 

2017/18 

£10,404 

£212.33 

£416.16 

£647.34 

2018/19 

£10,612 

£216.57 

£647.34 

£884.65 

2019/20 

£10,824 

£220.90 

£884.65 

£1,124.34 

2020/21 

£11,040 

£225.31 

£1,124.34 

£1,349.65 

The above is based on actual revaluation for financial years between 2015/16 and 2019/20 financial years. It is assumed that her pay will increase each year by 2% throughout. 

So, the pension for the period from 1 April 2015 to 1 April 2021 is £1,349.65 a year. 

 

For the membership between 1 April 2009 and 31 March 2015: 

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

Pension = £22,081 x 3 ÷ 60 = £1,104.05 a year 

 

For the membership before 1 April 2009: 

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

Pension = £22,081 (full time equivalent) x 7 ÷ 80 = £1,932.09 a year 

Lump sum = yearly pension x 3 

Lump sum = £1,932.09 x 3 = £5,796.26 

 

So, Sue's total benefit will be: 

Pension = £4,385.78 a year (£1,349.65 + £1,932.09 + £1,104.05) 

Lump sum = £5,796.26 

 

Helpful Information

  • LGPS
  • Accessing your benefits
  • Scheme Benefits

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Accessing your benefits

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Accessing Your Benefits

Related Documents

  • Member Scheme Guide

My Pension Online