Your pension benefits
Classic pension scheme
Retirement benefits
Pension
We work out your pension as follows (Pensionable pay multiplied by
Reckonable service) divided by 80. Part-time service counts based on the
actual hours you work and the equivalent full-time pensionable pay.
However, in the past there have been various restrictions on who can join
the scheme depending on the number of hours worked. If you have had
part-time service in the past, your pension administrator can tell you how
these restrictions may apply to you.
Lump sum
We work out your lump sum, which is payable free of tax based on three
times your annual pension. This lump sum will be reduced if you still have
to contribute to provide benefits for your widow or widower, or for
incapacitated children you have nominated during service.
Exchanging your lump sum
You may choose to give up all or part of your lump sum in return for an
increase in your pension. Your pension administrator can give you more
information. If you decide to exchange all or part of your lump sum, you
must make your decision before your last day of service.
Once we start paying your benefits, we cannot change them. The maximum
length of reckonable service that can count towards your pension at pension
age (normally age 60) is 45 years. Once you are old enough to receive a
State retirement pension, the State basic pension will become payable in
addition to your classic pension, as long as you have paid enough National
Insurance contributions.
Paying benefits
Capita, who are the group who actually make the pension payments, pay
benefits as quickly as possible, although they cannot promise a particular
start date. This is because they can only complete your benefit
calculations on your last day. In practice, they make every effort to
ensure that you receive your lump sum within a few days of retiring, and
your pension as soon as possible afterwards. It might help if you agree
your last day of service as far in advance as possible.
The lump sum is paid direct to either your bank or building society
account. Pensions are normally paid every month in arrears by direct credit
to your bank or building society account. They are treated as earned income
for tax purposes. Any due tax is taken off before the pension is paid.
