Your normal pension age is the same as your state pension age (but with a minimum of age 65).
How your pension benefits are worked out depends on when you were a member of the Scheme. If you have membership before and after 1 April 2015, separate calculations will need to be completed for each stage of your membership.
Calculating your benefits if you left the Scheme after 31 March 2015
If you left the Scheme after 31 March 2015 you will receive an annual pension when you retire, along with the option to give up some pension for a tax-free lump sum at the rate of £12 lump sum for every £1 of pension given up.
Different calculations are used to work out the value of your deferred pension for different parts of your membership.
Membership after 31 March 2015:
- Annual pension = each year, if you were in the main section of the Scheme 1/49th of your pensionable pay is added to your pension account (1/98th if you were in the 50/50 section) PLUS a revaluation amount so that your pension keeps up with the cost of living.
- Lump sum = not provided automatically
Membership between 31 March 2009 and 31 March 2015:
- Annual pension = membership between 31 March 2009 and 31 March 2015 x final pensionable pay x 1/60
- Lump sum = not provided automatically
Membership before 1 April 2009:
- Annual pension = membership before 1 April 2009 x final pensionable pay x 1/80
- Lump sum = membership before 1 April 2009 x final pensionable pay x 3/80
*NB. The above calculation is different for some Classroom Assistants.
Calculating your benefits if you left between 31 March 2009 and 31 March 2015
If you left the Scheme between 31 March 2009 and 31 March 2015 you will receive an annual pension when you retire, along with the option to give up some pension for a tax-free lump sum at the rate of £12 lump sum for every £1 of pension given up. If you had some membership before 1 April 2009 then your standard retirement package will also include an automatic lump sum calculated on your membership before 1 April 2009.
Your pension benefits are calculated on your final pensionable pay, your membership to the date of leaving and the accrual rate. The accrual rate is the rate at which your pension builds up. Membership built up before 1 April 2009 accrues at 1/80th for each year of membership. Membership built up after 31 March 2009 accrues at 1/60th for each year of membership.
If you joined the Scheme after 31 March 2009:
- Annual pension = membership after 31 March 2009 x final pensionable pay x 1/60
- Lump sum = not provided automatically
If you joined the Scheme before 1 April 2009:
- Annual pension = membership before 1 April 2009 x final pensionable pay x 1/80 plus membership after 31 March 2009 x final pensionable pay x 1/60
- Lump sum = membership before 1 April 2009 x final pensionable pay x 3/80
*NB. The above calculation is different for some Classroom Assistants.
Calculating your benefits if you left the Scheme before 1 April 2009
If you left the Scheme before 1 April 2009 you will receive a pension and an automatic lump sum. You have the option at retirement to increase your lump sum by giving up some pension subject to certain HMRC restrictions.
Your pension benefits are calculated on your final pensionable pay, your membership to the date of leaving and the accrual rate. The accrual rate is the rate at which your pension builds up. Membership built up before 1 April 2009 accrues at 1/80th for each year of membership.
If you left the Scheme before 1 April 2009:
- Annual pension = membership before 1 April 2009 x final pensionable pay x 1/80
- Lump sum = three times annual pension
*NB. The above calculation is different for some Classroom Assistants.
Example for members who were in the Scheme before April 2009 and left after April 2015
Mary leaves the Scheme in April 2019 and becomes a deferred member. She has been a member of the Scheme since April 2000 meaning that she has 9 years’ membership before April 2009, and 6 years’ membership between 2009 and 2015 and 4 years’ membership in the main section of the 2015 Scheme.
When Mary leaves the Scheme in April 2019 she earns £22,000 per year, and her salary has not changed since 1 April 2015. Her pre-1 April 2015 membership is still calculated on her final salary when she left the Scheme. The rate of revaluation will vary each year, however for this example it is set at 2%.
Mary’s pension is worked out in 3 stages as follows:
Membership before 1 April 2009
| Annual Pension | Lump Sum |
|---|---|
| (9 (Years) x £22,000 = £2,475)/80 | (9 (Years) x £22,000 X 3 = £7,425)/80 |
Membership from 1 April 2009 – 31 March 2015
| Annual pension |
|---|
| 6 (Years) x £22,000)/60 = £2,200 |
Membership from 1 April 2015 – April 2019
| Year | Opening Balance | New Pension Savings | Total Pension Savings | Revaluation of 2% | Closing balance |
|---|---|---|---|---|---|
| Year 1 | £0 | + £448.98 | = £448.98 | + £8.98 | = £457.96 |
| Year 2 | £457.96 | + £448.98 | = £906.94 | + £18.14 | = £925.08 |
| Year 3 | £925.08 | + £448.98 | = £1,374.06 | + £27.48 | = £1,401.54 |
| Year 4 | £1,401.54 | + £448.98 | = £1,850.52 | + £37.01 | = £1,887.53 |
Mary’s total annual deferred pension can be calculated by adding these three totals together:
£2,475 + £2,200 + £1,887.53 = £6,562.53 per year
As Mary has pre – 1 April 2009 membership she will also receive a guaranteed lump sum of:
£7,425