While you were building up Final Salary Plan pension
Your pension increased in line with your pensionable pay, until you stopped building up Final Salary Plan pension on 30 June 2012 (or date of leaving the Fund if earlier).
While you are (or were) building up DB Career Average Plan pension
While you are (or were) building up pension in the DB Career Average Plan continuously from June 2012, your Final Salary Plan pension when you stop (or stopped) doing so, is based on the lower of:
- Your current pensionable pay (or pensionable pay at the date you stopped building up pension in the DB Career Average Plan)
- Your pensionable pay on 30 June 2012 increased by 3% for every 1 July since then
Note: If you elected to pause (and then re-join) your membership of the DB Career Average Plan at any time since June 2012, your pensionable pay as at the effective date of your pause in active membership will be used in the calculation of your Final Salary Plan, subject to the second bullet point above.
When you stop building up DB Career Average Plan pension, the Final Salary Plan pension at that date calculated using the salary above is compared against the pension you had built up at 30 June 2012 but increased as it would have been had you stopped building up pension at that date (see table below). Your deferred Final Salary Plan pension at the date you stop (or stopped) building up DB Career Average pension will be the higher of these two. It then increases to the date you retire as set out below.
After you stop building up DB Career Average Plan pension
The way your Final Salary Plan pension increases over the whole period from when you stopped building up pension to age 65 depends on when you built it up. If you retire earlier than 65, slightly different increases apply, but the value of your benefits will be broadly equal to as if the increases set out below have been applied.
The higher of:
- The total Final Salary Pension built up to the date you stopped building up DB Career Average Plan pension, increased by the Retail Prices Index each year but capped at 5%.
- The total of Final Salary Pension built up and increased as set out in the table below:
| The pension built up… |
|
| Before 6 April 1997 |
The sum of:
- Guaranteed Minimum Pension (GMP) increased by a fixed rate for each complete tax year. The rate of increase depends on when you stopped building up DB Career Average Plan pension*
- Pension in excess of GMP increased by the increase in the Retail Prices Index over the whole period capped at 5% for each year for the whole period.
|
| 6 April 1997 to 5 April 2009 |
The increase in the Retail Prices Index over the whole period capped at 5% for each year for the whole period.
|
| 6 April 2009 to 30 June 2012 |
The increase in the Retail Prices Index over the whole period capped at 2.5% for each year for the whole period.
|
Please note that if you left before 1 January 1991 only the pension built up after 1 January 1985 in excess of your GMP will receive the increases above.
Also, there are some underpins not described above that may apply to some of your benefits; if these are applicable to your benefits, explanations regarding them can be provided upon request.
* GMP fixed increases:
| Date stopped building up DB Career Average Plan or Final Salary Plan Pension |
Rate of increase |
|
Before 6 April 1988
|
8.5%
|
|
Between 6 April 1988 and 5 April 1993
|
7.5%
|
|
Between 6 April 1993 and 5 April 1997
|
7.0%
|
|
Between 6 April 1997 and 5 April 2002
|
6.25%
|
|
Between 6 April 2002 and 5 April 2007
|
4.5%
|
|
Between 6 April 2007 and 5 April 2012
|
4.0%
|
|
Between 6 April 2012 and 5 April 2017
|
4.75%
|
|
Between 6 April 2017 and 5 April 2022
|
3.5%
|
|
From 6 April 2022
|
3.25%
|