Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

If you work Whole-Time: On retiring at age 65 with 20 years wholetimemembership (18 years up to 31.3.2008, two years from 1.4.2008)in the Scheme and a final years pay of £12,000. The annual pension is:18 years x 1/80 x £12,000 = £2,700 (old Scheme pension’)+ 2 years x 1/60 x £12,000 = £ 400 ( new Scheme pension’)£3,100The automatic tax-free lump sum is three times the old Scheme’ annual pension:£2,700 x 3 = £8,100If you work Part-Time: The same calculation is used, but yourmembership is scaled down to the part-time equivalent length based onyour contractual hours and your final pay is scaled up to the whole-timeequivalent rate. On retiring on 31 March 2010 at age 65 after 20 years(18 years up to 31.3.2008, two years from 1.4.2008) working half time -18½ hours a week in a 37 hour job with a part-time final pay of £6,000.Membership to be used in calculating benefits is reduced like this:20 years x 18½ ÷ 37 = 10 yearsAnd we would use a whole-time equivalent pay, so: The annual pension is:9 years x 1/80 x £12,000 = £1,350 (old Scheme pension’)+ 1 years x 1/60 x £12,000 = £ 200 ( new Scheme pension’)£1,550The automatic tax-free lump sum is three times the old Scheme’ annual pension:£1,350 x 3 = £4,050This member will have paid half the contributions and receive half thebenefits of an equivalent whole-time person.If your hours have changed during your membership of the Scheme,your benefits will be calculated to reflect the changes. If you do not haveany contractual hours, your membership for each year in the LGPS willbe calculated on average weekly hours worked during each year.11