Reduction in Hours

[Hawkey99]

Just wondered how your pension is worked out if you reduce hours to 3 day (23hours 24 mins)for the last few years of until retirement.

I understand that the amount you pay in would be reduced but I heard somewhere about your pension (the one that is already closed) being payable on the best year of the last 10 or some other complex formula.

Any ideas.

Thanks

[RobertT]

In 2014 there were changes made to the pension scheme which meant that all benefits accrued up to April 2012 were de-linked from pay and just went up with inflation from then on. So as far as I know that part of your pension won’t change if you reduce your hours, but it might be worth contacting the service centre in Chesterfield to check with them.

Under the terms of the current average salary pension post 2012, your benefits going forward will obviously reduce if you go part time because you’re working less hours and so both yours and RM contributions reduce accordingly. But you shouldn’t lose what you’ve already built up.

With the RMDCP, as you’re working fewer hours, both yours and RM’s contributions would be less and so the pot of money with your name on it would also be less.