EXAMPLE 1 Normal age retirement calculation for a single member

Transcription

1 BENEFITS (Section 2) (Age Retirement ) SECTION 2 Age Retirement Appendices APPENDIX 2 Age Benefit Regulation E1 APPENDIX 2A Examples of age benefits Introduction TPP/membership used in the examples Rounding estimate figures Warning to members EXAMPLE 1 Normal age retirement calculation for a single member EXAMPLE 2 Calculation for a normal age retirement at age 60 for a married man or married woman who has nominated her husband for a widower s pension EXAMPLE 3 Calculation for a normal age retirement at age 60 for a married woman, with an election to purchase extra widower s pension cover for all membership prior to by rescheduling the lump sum. EXAMPLE 4 Calculation for a normal age retirement at age 60 for married woman (PT Ancillary)

2 APPENDIX 2 Age Benefit Regulation E1 PART 7 -APPENDIX 2 Has member left NHS employ? NO Has member opted out of Scheme? NO Is member age 70? NO YES YES NO Is member age 60 (55 Special Classes MHO)? Benefit not payable until employment terminates or age 70 (Pres/ Refund) YES YES Age benefit payable YES Not eligible for benefit (possible Pres/Refund)

3 APPENDIX 2A EXAMPLES OF AGE BENEFITS Introduction These examples show how to work out straightforward age benefits. Though not strictly part of age benefits, any widow(er)'s pension is also shown. The following notes also give guidance as to the considerations that must be borne in mind when providing age estimates. TPP/membership used in the examples The TPPS used in the examples reflect the pensionable pay earned by the member at the time of their estimate request. Unless retirement is imminent you should not normally try to forecast final pay. The member is of course free to do so and may in this way be able to update, an earlier estimate. Membership used in the examples is always the figure expected to accrue by the estimate retirement date. Normally you should do the same in your estimates. Rounding estimate figures When working out likely figures, avoid the risk of over estimating. If you are in any doubt, round the membership and/or pay figures down. Warning to members Make it clear in written estimates that exact benefits cannot be worked out before retirement. Estimated figures are, of necessity, provisional. The Agency tries to be helpful and accurate when estimating future benefits but precise amounts cannot be given until final pay and membership details are known. The figures provided now are for guidance only. They are assessed in accordance with the regulations and the member s membership pattern at this time. At retirement they will be re-assessed. In every estimate, inform members of the membership and TPP details you have used.

4 EXAMPLE 1 This example shows the normal age retirement calculation for a y SINGLE MEMBER Benefits based on: Membership = 29 years (10585 days) TPP = 9500 Example 1 PENSION 9500 x = a year LUMP SUM (Gross pension x 3) = Estimate to member: Pension = a year Lump Sum =

5 EXAMPLE 2 This example shows the calculation for a normal age retirement at age 60 for a: y Married man OR y Married woman who has nominated her husband for a widower s pension. Example 2 Benefits based on: Membership = 35 years (12775 days) TPP = No election to purchase the unreduced lump sum. Pre membership 11 years (4015 days) PENSION x = a year LUMP SUM At 1/80 th of TPP x 4015 days to x 1 = At 3/80 th of TPP x 8760 days from x 3 = LUMP SUM PAYABLE =

6 EXAMPLE 2 cont WIDOW(ER)'S PENSION BASED ON ALL MEMBERSHIP = a year 2 Estimate to member: Pension a year Lump Sum Widower's pension a year Example 2

7 EXAMPLE 3 This example shows the calculation for a normal age retirement at age 60 for a: y MARRIED WOMAN With an election to purchase extra widower's pension cover for ALL membership prior to by rescheduling the lump sum. Benefits based on: Membership = 26 years (9490 days) Example 3 TPP = 7900 PENSION 7900 x 9490 = a year LUMP SUM At 1/80th of TPP 7900 X 723 days to x 1 = At 2/80th of TPP 7900 x 5852 days from to x 2 = At 3/80th of TPP 7900 x 2915 days from to retirement x 3 = LUMP SUM PAYABLE =

8 EXAMPLE 3 cont WIDOWER'S PENSION BASED ON ALL MEMBERSHIP = a year Estimate to member: Pension = a year Example 3 Lump Sum = Widower's pension = a year

9 EXAMPLE 4 This example shows the calculation for a normal age retirement at age 60 for a: y MARRIED WOMAN (PT ANCILLARY) No election to buy an extra widower's pension cover. Benefits based on: Example 4 Membership = 27 hours per week from Standard hours = 40 to from Hours worked to = x 7/40 = = 1897 days Hours worked from to retirement = 8602 x 7/39 = = 1544 days Total = 3441 days NB Round up ALL membership figures ACTUAL TPP = NWT TPP = PENSION 6200 x 3441 = a year EXAMPLE 4 cont LUMP SUM Gross pension x 3 =

10 WIDOWER'S PENSION BASED ON MEMBERSHIP FROM ONLY to = 250 days to = 255 days Hours from to = 984 x = 984 hours = 965 hours = = 169 days Hours from to retirement = 8602 x 7/39 = = 1544 days = 1713 days 6200 x 1713 = x 1713 = Estimate to member: Pension = a year Lump sum = Widower's pension = a year