Earlier Qualification for Benefits Calculations
| Example 1a |
Member aged 24 next birthday wishes to purchase Early Qualification for benefits by single payment on joining. Salary at date of application £21692.00 |
| Cost as per table |
3.9 per £1000 |
| Calculation |
3.9 x £21692.00 / £1000.00 |
Single payment cost is £84.60 (can be deducted from monthly salary)
|
| Example 1b |
Same member wishes to pay by monthly deductions from salary over a 5 year period |
| Cost as per table |
0.07% |
| Calculation |
0.07% x £21692.00 12 |
Monthly payment cost to be deducted from salary £1.27 (cost will increase as earnings increase in the 5 year payment period)
|
| Example 2a |
Same member wishes to purchase Early Qualification for benefits by single payment having received 2 years additional service in respect of a transfer value from a previous employment. Period for which contributions are due is reduced to 3 years as a result of the transferred in service. |
| Cost per table |
3.9 per £1000 |
| Calculation |
3/5 x 3.9 x £21692.00 / £1000.00 |
Single payment cost is £50.76 (can be deducted from monthly salary)
|
| Example 2b |
Same member wishes to pay by monthly deduction from salary over the remaining 3 year period |
| Cost per table |
0.07% |
| Calculation |
0.07% x £21692.00 12 |
Monthly payment cost to be deducted from salary £1.27 (cost will increase as earnings increase in the 3 year payment period.
|