When you take your pension, NILGOSC will check the pension that you have built up from 1 April 2015 to 31 March 2022. We will compare the career average pension built up with what you could have built up in the final salary scheme, had it continued. If the final salary pension is higher, the difference (the underpin) is added to your pension.
However, the check is complicated as the following parts of a member’s pension are excluded from the underpin check:
- extra pension bought by additional pension contributions (APCs) to boost your pension.
- extra pension your employer bought for you.
- extra pension you bought by paying additional regular contributions (ARCs) or added years that you have bought.
- transfers from a non-public service pension scheme.
- reduced contributions you paid while in the 50/50 section of the Scheme.
- any pension debits which apply because your pension was shared with your former spouse or civil partner.
- any Scheme pays debits where you have asked NILGOSC to pay your annual allowance tax charge for you with a corresponding reduction to your pension.
- additional voluntary contributions (AVCs).
Any additional pension contributions (APCs) that you paid to buy back pension that was ‘lost’ while you were away from work during the remedy period (1 April 2015 to 31 March 2022) are included in the underpin check. The corresponding period that you have paid for will also be included to work out the final salary pension for the underpin check.