CALCULATING DEFERRED BENEFITS IF YOU LEFT AFTER 31 MARCH 2008
Your scheme benefits will be based upon Final Salary - that is, based on pay in your final year of membership before leaving the Scheme and the number of years you were a Scheme member.
Until 31 March 2008 the rate was 1/80th per year for pension and 3/80th per year for automatic tax-free lump sums, however for membership built up in the new LGPS from
1 April 2008 the rate will become 1/60th per year for pension WITHOUT an automatic lump sum.
Although an automatic lump sum will not be generated in respect of membership from
1 April 2008, members will be able to give up some pension and take a lump sum, at the rate of £1 of annual pension for each £12 of lump sum subject to a maximum of 25% of the capital value of their benefits.
| Membership up to 31 March 2008 |
| Total Membership/80 x Final Pay = Annual Pension |
| Annual Pension x 3 = Automatic Lump Sum |
| Membership from 1 April 2008 |
| Total Membership/60 x Final Pay = Annual Pension |
| No Lump Sum |
 Example 1: Brian
Retiring at 65
|
|
Brian leaves the Scheme with deferred benefits on 31 March 2028
with 40 years of whole-time membership. His final pay is £12,000 Total Membership up to 31 March 2008 = 20 Years
Total Membership after 1 April 2008 = 20 Years Final Pay = £12,000
|
| Brian's Benefits up to 31 March 2008 |
| 20/80 x £12,000 |
| = £3,000 Annual Pension |
| £3,000 x 3 = £9,000 Automatic Lump Sum |
| Brian's Benefits from 1 April 2008 |
| 20/60 x £12,000 |
| = £4,000 Annual Pension |
| No Automatic Lump Sum |
 Example 2: Jean
Retiring at 65
|
|
Jean joined the Scheme on 1 April 2008 and leaves with 20 years of whole-time membership on 31 March 2028. Her final pay is £12,000
Total Membership = 20 Years |
| Jean's Benefits |
| 20/60 x £12,000 |
| = £4,000 Annual Pension |
