Age retirement – Examples of benefit calculations

Example 1

Scheme Service: 40 years
Final Earnings: £15,000
Assuming Annual Pensions Increase at 4% a year

	Annual Pension	Lump Sum	Annual Pension
At Retirement	7500.00	22,500
After 1 Year	7800.00		After 6 years 9489.89
After 2 years	8112.00		After 7 years 9869.48
After 3 years	8436.48		After 8 years 10264.26
After 4 years	8773.93		After 9 years 10674.83
After 5 years	9124.89		After 10 years 11101.83

Example 2

Scheme Service: 25 years
Final Earnings: £15,000
Assuming Annual Pensions Increase at 4% a year

	Annual Pension	Lump Sum	Annual Pension
At Retirement	4687.50	14062.50
After 1 Year	4875.00		After 6 years 5931.18
After 2 years	5070.00		After 7 years 6168.43
After 3 years	5272.80		After 8 years 6415.16
After 4 years	5483.71		After 9 years 6671.77
After 5 years	5703.06		After 10 years 6938.64

Lump sum

The lump sum will normally equal three times your basic annual pension when you retire. In our examples above you would receive a tax-free lump sum of £22,500 after 40 years of service, or £14,062.50 after 25 years of service.