Jenny's Pension

If Jenny leaves and takes her LGPS benefits at age 61
 
Jenny thinks it unlikely she will be promoted prior to leaving her post.
 
If Jenny leaves at age 61 and elects to take her benefits immediately, both her pre-1 April 2015 and post-1 April 2015 pension amounts will be actuarially reduced (but by different amounts). This is because her protected Normal Pension Age (NPA) of 65 means that her pre-2015 pension is being taken 4 years early while her LGPS 2015 pension with an NPA of 67 is being taken 6 years early:
 
Assumed Annual Pay/Inflation Growth
1% 2.5% 4%
Final Salary Annual Pension (8 years*) £3,716 £4,371 £5,128
LGPS 2015 Annual Pension (12 years)
£7,215 £7,814 £8,475
Total Annual Pension
£10,931
£12,185
£13,603
Comparison - if pension remained for 20 year as Final Salary Pension
£9,663 £11,364 £13,333
 
+/- Difference +£1,298 +£821 +£270
 
If Jenny leaves and takes her LGPS benefits at age 67
 
If she remains in the Scheme until age 67, she will have no reduction on her LGPS 2015 pension and an increase to her pre-2015 pension due to it being taken two years later than her protected NPA:
 
Assumed Annual Pay/Inflation Growth
1% 2.5% 4%
Final Salary Annual Pension(8 years*) £5,435 £6,982 £8,938
LGPS 2015 Annual Pension (18 years)
£16,475 £18,620 £21,128
Total Annual Pension
£21,910
£25,602
£30,066
Comparison - if pension remained for 26 year as Final Salary Pension
£18,479 £23,742 £30,394
 
+/- Difference +£3,431 +£1,860 -£328
*As these benefits are shown at age 67 (two years after the protected NPA of 65) they include a 10.22% enhancement.