How your pension is made up

The way your pension benefits are calculated are dependent on whether they’re in the Career Average or Final Salary Scheme arrangement.

Final Salary Arrangement

If your Normal Pension Age (NPA) 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 Statement, which you can access at any time.