How are my deferred benefits worked out?

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CalculatorYour deferred benefits will be calculated as follows:
 
  • Your deferred pension in respect of your membership of the Scheme after 31 March 2014, is the value of the pension you have built up in your active pension account at the point of leaving.
 
  • That amount of pension is transferred from your active pension account to your deferred pension account. When you draw your deferred benefits, you will be given the option to exchange some of your annual pension for a one off tax-free lump sum. You will receive £12 lump sum for each £1 of annual pension given up. You can take up to 25% of the capital value of your pension benefits as a lump sum.
 
  • The part of your deferred pension in respect of any membership of the Scheme you have between 1 April 2008 and 31 March 2014, is calculated by dividing any period of membership you have falling between those dates by 60 and multiplying the resulting figure by your final pay on leaving. When you draw your deferred benefits, you will be given the option to exchange some of your annual pension for a one off tax-free lump sum. You receive £12 lump sum for each £1 of annual pension given up. You can take up to 25% of the capital value of your pension benefits as a lump sum.
 
  • The part of your deferred pension in respect of any membership of the Scheme you have between before 1 April 2008 is calculated by dividing any period of membership you have falling before that date by 80 and multiplying the resulting figure by your final pay on leaving. In addition you will be entitled to an automatic tax-free lump sum of three times your pension for membership before 1 April 2008. You can also exchange part of the pre April 2008 pension for extra lump sum as described above.
 
To see an example of how benefits built up before April 2014 are worked out, please click here.