BGCM EC May 2017

7.

HOW IS MY PENSION CALCULATED?

Your pension is calculated as a fraction of the salary you earn in the period leading up to the date when you retire (or leave the GFTU, or opt out of the Scheme or die).

There are three elements to the calculation, namely your Final Pensionable Pay, your Pensionable Service, and the ‘Accrual Rate’. The basic calculation for each period is:

Accrual Rate x

Pensionable Service x

Final Pensionable Pay.

For members who joined the Scheme before 1 July 2011

The Accrual Rate changed with effect from 1 July 2011 from 1/50th to 1/65th, and again with effect from 1 May 2015 from 1/65th to 1/70th.

So:

 For pension accrued before 1 July 2011 the formula is:

1/50th of your Final Pensionable Pay for each year (or part year) of Pensionable Service

 For pension accrued after 1 July 2011 but before 1 May 2015 the formula is:

1/65th of your Final Pensionable Pay for each year (or part year) of Pensionable Service

 For pension accrued after on and after 1 May 2015 the formula is:

1/70th of your Final Pensionable Pay for each year (or part year) of Pensionable Service.

It is important to note that Pensionable Service is calculated in complete calendar months.

For example:

Take the case of a person who:

 became an Active Member on 15 May 1996 and



retires on 30 October 2022.

His or her Pensionable Service is broken up into three parts:

 Pensionable Service before 1 July 2011: the accrual rate for this period is 1/50th.

 Pensionable Service on and after 1 July 2011 but before 1 May 2015: the accrual rate for this period is 1/65th.

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