LGPS Calculators
How is my pension worked out - An example
Let's look at the build up in a member's pension account for 5 years in the scheme.
Let's assume that the member joins the scheme on 1 April 2014, that their pensionable pay is £24,500 in scheme year 1 and their pensionable pay increases by 1% each year. Let's also assume that the cost of living (revaluation adjustment) is 3% each year.
| Scheme Year | Opening Balance |
Pension Build up in Scheme Year Pay/ Build up rate = Pension |
Total Account 31 March | Cost of Living Revaluation Adjustment | Updated Total Account |
|
1 2014/15 |
£0.00 |
£24,500/ 49 = £500 |
£500 | 3% = £15 |
£500 + £15 = £515 |
|
2 2015/16 |
£515 | £24,745/ 49 = £505 | £1,020.00 | 3% = £30.60 | £1,020.00 + £30.60 = £1,050.60 |
|
3 2016/17 |
£1,050.60 | £24,992.45/ 49 = £510.05 | £1,560.65 | 3% = £46.82 | £1,560.65 + £46.82 = £1,607.47 |
|
4 2017/18 |
£1,607.47 | £25,242.37/ 49 = £515.15 | £2,122.62 | 3% = £63.68 | £2,122.62 + £63.68 = £2,186.30 |
|
5 2018/19 |
£2,186.30 | £25,494.79/49 = £520.30 | £2,706.60 | 3% = £81.20 | £2,706.60 + £81.20 = £2,787.80 |
For a more in-depth look at how a pension account works, try the interactive Pensions Account Modeller and to find out how much you will pay in contributions, try the Contributions Calculator.
