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. To see your most up-to-date statement, visit My Online Services.