Changes in your Circumstances

What happens if my pay changes?

Your contributions will automatically be updated to reflect 5% of your new pensionable earnings when your pay is increased.

Example

Jenny works full time for the 25 years and then works part-time (18 hours a week instead of the full-time 36 hours) for the next 10 years.

When Jenny retires, her actual pensionable final earnings are £10,000.

Jenny’s full time equivalent pensionable final earnings = £10,000 x 36/18 = £20,000

Jenny’s reckonable service = 25 + (10 x 18/36) = 30 years

Jenny’s pension = (1/80 x £20,000 x 30 years) = £7,500 a year

Jenny will also receive a lump sum of £22,500 (3/80 x £20,000 x 30 years)

What happens if I work part time?

If you work part-time, the Plan Administrator will work out your pension by using a full-time equivalent rate for your pensionable final earnings and by counting your reckonable service on the basis of the time you actually work.

Your service will then be multiplied by the ratio of your part time working hours to your full time working hours to give reckonable service for the purpose of calculating your benefits.

This treats part-time and full-time periods of service consistently. In particular, you are not disadvantaged if you move to part-time working in the run-up to your retirement.

What if I have periods off work?

You can usually only pay contributions and build up reckonable service if you are actually working.

The main exception to this is certain periods of statutory paid maternity leave which count as reckonable service.

If you are off work on long-term paid sick leave, you will continue to build up reckonable service if you are paying member contributions during your absence.

In Changes in your circumstances

There are no further pages in this section.