Final Salary Pension

Post by **freespeech** » 26 Jun 2020, 10:52

Hi,

I'm a Section C member. I'm trying to work out how the final salary pension figure from the yearly statement is derived. The explanation is ".....based on the number of years and days you worked up to then (31/03/2008) and your current pensionable salary. I've done, near as doesn't matter, 20 years (to March 2008) so am I right to think as this is a 60th scheme I should get one third (20/60) of my current pensionable salary as my final salary pension?

Thanks in advance.

Post by **RobertT** » 26 Jun 2020, 13:10

Yes, you're correct, section C is a 60ths scheme, so your FS pension should equal 1/60th of your pensionable pay for each year of pensionable service.

Bearing in mind that pensionable years are worked out pro-rata based on your contracted hours. So for example, if full time hours were 40 per week and you only worked 20 for those 20 years, you'll have 10 years pensionable service.
Plus section C members have the Lower Earnings Deduction to factor in.

The FS pension figure on page 3 of your annual illustration is based on the pensionable salary and FS service figures on page 6.

Personally, I spent the first few years as a part timer, so my pensionable service is less than my actual service. I've just double checked mine, based on the 2019 illustration and it all works out!

Post by **freespeech** » 27 Jun 2020, 01:41

RobertT wrote:Yes, you're correct, section C is a 60ths scheme, so your FS pension should equal 1/60th of your pensionable pay for each year of pensionable service.

Bearing in mind that pensionable years are worked out pro-rata based on your contracted hours. So for example, if full time hours were 40 per week and you only worked 20 for those 20 years, you'll have 10 years pensionable service.
Plus section C members have the Lower Earnings Deduction to factor in.

The FS pension figure on page 3 of your annual illustration is based on the pensionable salary and FS service figures on page 6.

Personally, I spent the first few years as a part timer, so my pensionable service is less than my actual service. I've just double checked mine, based on the 2019 illustration and it all works out!

After I posted I did a few calculations. I've never been PT so I didn't have to do that check BUT I did have to check my start date for the pension as that was different than my work start date. I also needed to factor in the transfer of an existing pension. It comes to 19 years 346 days (19.95 years). So I then did 19.95/60 (60th scheme) to get 0.332. I then used that as a multiplier of my pensionable pay to get my final salary pension and it works out and reconciles with the annual statement.

Post by **tractorboy2** » 27 Jun 2020, 07:31

For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?

Post by **freespeech** » 27 Jun 2020, 07:48

tractorboy2 wrote:For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?

Service to 31/03/2008 only (20 years for me).

Post by **tractorboy2** » 27 Jun 2020, 08:28

freespeech wrote:
tractorboy2 wrote:For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?
Service to 31/03/2008 only (20 years for me).

I thought so thanks freespeech

Dindin · Post by **Dindin** » 27 Jun 2020, 13:05

freespeech wrote:
tractorboy2 wrote:For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?
Service to 31/03/2008 only (20 years for me).

I've got 18 years till 2008 . What about from nra65 to 2018?

Post by **freespeech** » 27 Jun 2020, 14:30

Dindin wrote:
freespeech wrote:
tractorboy2 wrote:For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?
Service to 31/03/2008 only (20 years for me).
I've got 18 years till 2008 . What about from nra65 to 2018?

NRA 65 is service from 1st April 2010 to 31st March 2018.

Post by **RobertT** » 27 Jun 2020, 15:23

Dindin wrote:
freespeech wrote:
tractorboy2 wrote:For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?
Service to 31/03/2008 only (20 years for me).
I've got 18 years till 2008 . What about from nra65 to 2018?

For those in sections A, B & C of the RMPP:

Pension accrued up to 31st March 2008 is final salary.
Pension accrued from 1st April 2008 to 31st March 2018 is Career Salary Defined Benefit.
From 1st April 2018 you've been building up a lump sum via the Defined Benefit Cash Balance Scheme.

For more info, see the RMPP website.

Dindin · Post by **Dindin** » 27 Jun 2020, 17:31

RobertT wrote:
Dindin wrote:
freespeech wrote:
tractorboy2 wrote:For Section C is pensionable service only up to 2008 , when this scheme closed or the actual amount of years you've worked.?
Service to 31/03/2008 only (20 years for me).
I've got 18 years till 2008 . What about from nra65 to 2018?
For those in sections A, B & C of the RMPP:

Pension accrued up to 31st March 2008 is final salary.
Pension accrued from 1st April 2008 to 31st March 2018 is Career Salary Defined Benefit.
From 1st April 2018 you've been building up a lump sum via the Defined Benefit Cash Balance Scheme.

For more info, see the RMPP website.

thanks Robert T