LGPS flexible retirement example
Mr A, who has 25 years full time service, is granted flexible retirement at age 60. His hours are reduced from 36 (full time) to 18 a week on 1 April 2014. There is no reduction to his benefits in respect of their early payment as he is a protected member under the former ’85 year rule’. His pensionable pay is £30,000.
The benefits payable from 1 April 2014 would be:
Pension
Service to 31.3.2008: 19/80 x £30,000.00 = £7125.00 pa
Service 1.4.2008 to 31.3.2014: 6/60 x £30,000.00 = £3000.00 pa
Total pension = £10125.00 pa
Retirement Grant
Service to 31.3.2008: 19 x 3/80 x £30,000.00 = £21375.00
Total retirement grant = £21375.00
If he continued working 18 hours a week for a further 2 years to age 62, he would be entitled to a further pension of:
Pensionable pay (18/36 of whole-time) = £15,000
Earned pension in CARE scheme = 2/49
Pension
Service 1.4.2014 to 31.3.2016: 2/49 x £15,000.00 = £612.24 pa
Less reduction for early payment = 16% £97.96 pa
£514.28 pa
Total pension payable from age 62* would be:
£10125.00 pa
+ £ 514.28 pa
£10639.28 pa
- Alternatively, the member may defer payment until age 65 when the full additional pension of £500 would be paid.
- Revaluation of CARE pension not included in this example.
If he continued working 18 hours a week for a further 5 years to age 65, he would be entitled to a further pension of:
Pensionable pay (18/36 of whole-time) = £15,000
Earned pension in CARE scheme = 5/49
Pension
Service 1.4.2014 to 31.3.2019 5/49 x £15,000.00 = £1530.61 pa
Total pension payable from age 65 would be:
£10125.00 pa
+ £1530.61 pa
£11655.61 pa