When you retire, your pension will be based on the following set formula:
1/60 (accural rate)
years of service in the Scheme (pensionable service)
your pay (pensionable salary)
Total pension from the Scheme
The changes implemented with effect from 1 April 2014 placed an annual cap on increases to the salary used to calculate your pension from 1 April 2013 onwards at the lower of:
- 3%; or
- the annual increase in the Retail Prices Index (RPI)
Capped Pensionable Salary is also used to calculate pension from any service you have transferred into the Scheme since 1 April 2014 and for Added Years contracts started since 1 April 2014.
Deferred pensions are calculated at your date of leaving and increased by the Retail Prices Index each year to make sure they keep up with inflation.