Darshan's pension

If Darshan takes his LGPS benefits at age 68
Darshan expects to be promoted a year after the new scheme starts in April 2015, which should increase his annual pensionable earnings by 3% over and above his annual increases.
If he leaves the Scheme with 7 years pensionable service, his deferred pension payable at 68 would be as shown in the table below:
Assumed Annual Pa/Inflation Growth**
1% 2.5% 4%
Final Salary Pension* (2 years)*** £756 £802 £850
LGPS 2015 Annual Pension (5 years)
£2,055 £2,117 £2,180
Total Annual Pension
Comparison - if pension remained for 7 year as Final Salary Pension***
£2,646 £2,807 £2,975
+/- Difference +£165 +£112 +£55
**Plus increases due to a promotion 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 Darshan wishes takes to take his LGPS benefits at age 65
If Darshan takes his deferred benefit at 65 (the current Normal Pension Age) rather than 68 (his LGPS 2015 Normal Pension Age) his pension would be actuarially reduced by around 16%.

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