Estelle's pension

If Estelle leaves and takes her LGPS benefits at age 60
 
Estelle is a 75% part-time Reception Clerk with an annual full-time equivalent pensionable pay of £22,584. She is confident of a promotion in four years time worth an extra 10% over and above her annual pay increases.
 
If she leaves and takes her benefits at age 60, her pre-1 April 2009 benefits will not be actuarially reduced (because she meets the Rule of 85). However, her 1 April 2009 to 31 March 2015 and post-31 March 2015 pensions will be actuarially reduced but by different amounts.
 
Assumed Annual Pay/Inflation Growth**
1% 2.5% 4%
Final Salary Pension* (12 years) £4,262 £5,162 £6,236
LGPS 2015 Annual Pension (14 years)
£4,480 £4,932 £5,440
Total Annual Pension
£8,742
£10,094
£11,676
Comparison - if pension remained for 22.5 year*** as Final Salary Pension
£8,022 £9,717 £11,737
 
+/- Difference (Total Annual Pension) +£720 +£377 -£61
**Plus increases due to a promotion as stated above
*** Total membership is 30 calendar years (before taking into account 75% part-time working)
 
 
If Estelle leaves and takes her LGPS benefits at her NPA of 67
 
If she stays until 67 there will be no reductions and an actuarial increase to her pre-April 2015 pension benefits:
 
Assumed Annual Pay/Inflation Growth**
1% 2.5% 4%
Final Salary Pension* (12 years) £5,637 £7,570 £10,122
LGPS 2015 Annual Pension (21 years)
£11,114 £12,858 £14,958
Total Annual Pension
£16,751
£20,428
£25,080
Comparison - if pension remained for 27.75 year*** as Final Salary Pension****
£14,407 £19,348 £25,872
 
+/- Difference (Total Annual Pension) +£2,344 +£1,080 -£792
**Plus increases due to a promotion as stated above
*** Total membership is 37 calendar years (before taking into account 75% part-time working)
**** As these benefits are shown at age 67 (2 years after the protected NPA of 65) they include a 10.22% enhancement