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CALCULATING YOUR BENEFITS AFTER 1 APRIL 2008
From 1 April 2008, scheme benefits are still be based upon FINAL SALARY - that is, based on pay in your final year of membership and the number of years you have been a Scheme member.
The 'accrual rate' is the rate at which the fraction of your final pay increases for each year of Scheme membership. 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 from 1 April 2008 the rate became 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 pension for each £12 of lump sum subject to a maximum of 25% of the capital value of their total pension benefits.
1 April 2008, members will be able to give up some pension and take a lump sum, at the rate of £1 of pension for each £12 of lump sum subject to a maximum of 25% of the capital value of their total pension 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: Peter
Retiring at 65
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Peter retires on his 65th birthday on 31 March 2028 with 40 years
of whole-time membership of the Scheme. His final pay is £12,000 Total Membership up to 31 March 2008 = 20 Years |
| Peter'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 |
| Peter's Benefits from 1 April 2008 |
| 20/60 x £12,000 |
| = £4,000 Annual Pension |
| No Automatic Lump Sum |
