Andre's pension

If Andre takes his LGPS benefits at age 68
 
Andre hopes to remain in his post and the LGPS until age 55 and anticipates he would receive four promotions each worth 10% over and above his annual pay increases during that time.
 
If he remains in his employment to age 55, Andre could either take his pension with a substantial reduction or leave it as a deferred pension payable unreduced at age 68. The amounts payable at that age would be those shown below:
 
Assumed Annual Pay/Inflation Growth**
1% 2.5% 4%
Pre-2015 Protected Annual Pension (5 years)*** £3,770 £5,370 £7,610
LGPS 2015 Annual Pension (25 years)
£20,056 £24,135 £29,282
Total Annual Pension
£23,826
£29,505
£36,892
Comparison - if pension remained for 30 year as Final Salary Pension***
£22,618 £32,219 £45,661
 
+/- Difference +£1,208 -£2,714 -£8,769
 **Plus increases due to promotions as stated above
***As these benefits are shown at age 68 (3 years after the protected NPA of 65) they include a 15.33% enhancement
 
 
If Andre takes his deferred LGPS benefits at age 65
 
If Andre takes his deferred benefit at 65 (his current Normal Pension Age) rather than 68 (his estimated LGPS 2015 Normal Pension Age) the part of his pension relating to the LGPS 2015 would be actuarially reduced by around 16%.

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