classic plus
Retirement benefits
Pension
We work out your pension as follows :
- A pension as in classic for your service before 1st October 2002; that is pension based on 1/80 of your final pensionable pay for each year of reckonable service.
- A pension as in premium for your service from 1st October 2002, a pension based on 1/60 of your final pensionable pay for each year of reckonable service.
Lump sum
You get a lump sum which is linked to the classic part of your service. This is 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.
Additional lump sums
You will also be able to choose to give up part of your pension for an additional lump sum. You can choose how much extra lump sum you want, up to a maximum of 33/14 times your initial pension, but you must give up £1 of annual pension for each £12 of lump sum.
You can also take a further additional lump sum if you exchange some of the pension that is linked to your premium service. We will give you £12 of lump sum for each £1 of yearly (premium) pension you give up.
Lump sum calculator [XLS] This calculator uses Microsoft Excel. If you do not have Excel, ask your pensions administrator helpline to do the calculation for you.
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.
Maximum length of reckonable service
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 Hartshead, 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.
Information for pensioners
