Eileen's Pension

If Eileen takes her LGPS benefits at age 68
 
Eileen will join the LGPS on the 1 April 2015. She hopes to be promoted to a supervisor role in about 9 years time, which should increase her annual pensionable earnings by 20% over and above her annual increases.
 
If Eileen leaves with 25 years pensionable service in the new scheme, her deferred pension payable at 68 would be as shown in the table below:
 
Assumed Annual Pay/Inflation Growth**
1% 2.5% 4%
Final Salary Pension* (0 years) £0 £0 £0
LGPS 2015 Annual Pension (25 years)
£11,480 £13,729 £16,553
Total Annual Pension
£11,480
£13,729
£16,553
Comparison - if pension remained for 25 year Final Salary pension
£9,657 £13,756 £19,495
 
+/- Difference +£1,823 -£27 -£2,942
**Plus increases due to a promotion as stated above
 
 
If Eileen wishes takes to take her LGPS benefits at age 65
 
If Eileen takes her deferred benefit at 65 (the current Normal Pension Age) rather than 68 (her LGPS 2015 Normal Pension Age) her pension would be actuarially reduced by around 15%.