At Retirement

The Scheme's Normal Retirement Age for both men and women is age 65. With the agreement of the Trustee Directors and the Company, you may be able to retire from the Scheme at any time from age 55. If you retire before your Normal Retirement Age, your pension will be paid at a reduced rate, as it will be paid for longer.

Final Salary Section pension benefits

At Normal Retirement Age you can choose to receive:

• A pension for life; or
• A tax-free cash sum and a reduced pension for life.

Your pension is calculated based on your Final Pensionable Salary and Pensionable Service, as shown below. Your Final Pensionable Salary is your salary on 30 April 2011 or the date you left the Scheme, if earlier. Your Pensionable Service is your period of active membership of the Scheme. Your pension is calculated as follows:

Accrual rate x Final Pensionable Salary x Pensionable Service = Pension

The accrual rate is 1/100ths up to the 'upper earnings limit' (UEL). The UEL is the amount on which your national insurance contributions were payable and your State Second Pension (S2P) benefits based, which was £42,475 for the 2011/12 tax year. The accrual rate for pensionable salary above the 'upper earnings limit' is 1/60ths. 

Example 1

If a member leaves employment after completing 10 years and 6 months' service and has received pensionable salary of £30,000, their annual pension entitlement at normal retirement age is calculated as follows:

1/100 x £30,000 x 10.5 = £3,150

Example 2

If a member completes 10 years and 6 months' service with a final pensionable salary of £50,000, their annual pension entitlement at normal retirement age is calculated as follows:

(1/100 x £42,475 x 10.5 = £4,459.88) + (1/60 x £7,525 x 10.5 = £1,316.87) = £5,776.75