Full time employee
An employee has 20 years pensionable membership up to 31 March 2008 and 2 years pensionable membership after 1 April 2008. Totalling 22 years membership in the pension scheme. This employees final years pensionable pay at retirement is £18,000.
The benefits based on 20 years membership up to 31 March 2008 will be calculated as follows:
Annual pension
20/80 x £18,000 = £4,500
Automatic tax free lump sum
3 x 20/80 x £18,000 = £13,500
The benefits based on 2 years of membership after 31 March 2008 will be calculated as follows:
Annual pension
2/60 x £18,000 = £600
(No automatic lump sum for this period)
Total annual pension: £5,100
Total lump sum: £13,500
Part time employee
If the same employee had worked half time he/she would have 11 years total membership in the pension scheme (10 years pre April 2008 membership and 1 year post April 2008 membership)
The benefits based on 10 years membership up to 31 March 2008 will be calculated as follows:
Annual pension
10/80 x £18,000 = £2,250
Automatic tax free lump sum
3 x 10/80 x £18,000 = £6,750
The benefits based on 1 year of membership after 31 March 2008 will be calculated as follows:
Annual pension
1/60 x £18,000 = £300
(No automatic lump sum for this period)
Total annual pension: £2,550
Total lump sum: £6,750
