How your pension is made up

The way your pension benefits are calculated are dependent on whether they’re in the Career AverageFrom 1 April 2015 the method of benefit accrual for new entrants or transitioning members became Career Average Revalued Earnings. This is a defined benefit pension where a fraction of pensionable earnings are banked each year and revalued annually on a compound basis. or Final Salary SchemeThe final salary arrangement is split into two categories: 80th
Those who joined the scheme prior to the 01/01/2007 entered the 80th section with a Normal Pension Age (NPA) of 60 60th
Those who joined the Scheme on or after the 01/01/2007 entered the 60th section with a NPA of 65. From 01/04/2015 new entrants join the career average arrangement. arrangement.

Final Salary Arrangement

If your Normal Pension Age (NPA)The age at which you're eligible to claim retirement benefits without actuarial reduction. is 60 your final salary benefits are:

• A pension calculated by multiplying your service by your average salary and then dividing by 80; and
• A lump sum equal to three times your pension.

If your Normal Pension Age is 65 your final salary benefits are:

• A pension calculated by multiplying your service by your average salary and then dividing by 60.

Career Average Arrangement

Your career average benefits are based on 1/57 of your pensionable earnings each year plus index linking. This amount is banked each year with your eventual pension made up of all the amounts that have been banked each year.

To understand more on how your pension is made it up then visit calculating benefits in our retirement planning section. To see how much you’ve accumulated in your pension then check your Benefit StatementAn estimate of current pension benefits based on the service and salary details provided by employers. The information held on the benefit statement can only be as accurate as the information provided by employers, which is why it should always be checked to see if the service and salary details we hold are accurate., which you can access at any time.