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Benefits on Retirement

There is a standard basis for calculating scheme pension benefits. On retirement, you are entitled to a pension of:

1/60 x Final Pensionable Earnings x Pensionable Service

Pensionable Service - the number of years, months and days, that you have built up under the Scheme.

Pensionable Earnings - generally, your gross earnings in any Scheme Year less an offset, at present equal to £3,630 (for the Scheme Year 2011/12). The offset will increase annually in line with price inflation.

Final Pensionable Earnings - generally your highest Pensionable Earnings for any one Scheme Year in the last five years of Scheme Membership.

Example: a Member retiring with Final Pensionable Earnings of £25,000 and Pensionable Service of 34 years 6 months would have an annual pension as follows:

34.5 x 1/60 x £25,000 = £14,375.

Please note that abnormally wide variations in non-basic pay elements such as overtime and bonus will be averaged over 3 years.

Your pension may be reduced to take account of early payment see Early Retirement.

You may exchange part of your pension for a tax-free cash lump sum. See Can I Exchange Pension for Cash?