Pre April 2015 membership

All of the membership you build up in the Scheme before April 2015 will be used to calculate your benefits in the final salary scheme. These pre-2015 benefits will be calculated using your final pay when you leave.  Only the membership you build up from April 2015 onwards is calculated under the rules of the new career average scheme.

 
For Example:

Tim retires at his Normal Pension Age in 2018 with a total of 16 years’ service. These benefits have therefore been built up as follows:

  •    first 7 years were built up before 31 March 2009
  •    the next 6 years from 1 April 2009 to 31 March 2015
  •    the last 3 years in the new scheme from 1 April 2015.

Tim's final pensionable pay figure when he leaves is £15,320 so his total benefits will be calculated:

 
Built up before 31 March 2009
7 years membership                                             
Pension (7 x 1/80 x £15,320)
Automatic Lump Sum (7 x 3/80 x £15,320)
£1,340.50
£4,021.50
1 April 2009 to 31 March 2015
6 years membership
Pension (6 years x 1/60 x £15,320) £1,532.00
LGPS 2015
3 years membership
Career Average Pension £933.67
 
 
 
 
 
 
 
 
The member's total LGPS pension benefits (adding together the three pension amounts) is £3,806.17 plus an automatic lump sum of £4,021.50.
 
He could increase the amount of benefit he will take as a tax free cash lump sum by exchanging pension to a maximum of £17,748.40 which would leave him with an annual pension of £2,662.26 (assuming he has no other pension savings).