If you are a member of the 1995 Section of the scheme and have entitlement, you will receive a pension and a retirement lump sum based on your final years’ pensionable pay. The pension is 1/80th of your final year’s pensionable pay, for each year of pensionable service in the scheme. Part years will also count towards your pension.
Your pension is calculated as follows:
Pensionable Pay x Pensionable Service x 1/80
Your retirement lump sum is normally three times the Pension.
A midwife retires after 28 years and 173 days Pensionable Service with a Final Year’s Pensionable Pay of £25,650.
Her Pension is £25,650 x 28.474 x 1/80 = £9,129.48 per year.
Her Retirement Lump Sum is approximately 3 x pension, or £25,650 x 28.474 x 3/80 = £27,388.43.There is also the option to convert an amount of pension into an additional lump sum up to the maximum allowed by HM Revenue & Customs of 25% of the fund value. You should contact us nearer your retirement date if you wish to consider this option. The factor for converting your pension into lump sum under the scheme is 12:1 (for each £12 of lump sum, you will give up £1 per annum of pension in exchange).
Pension benefits may be liable to revision if the SPPA is notified of any changes to the information used to calculate your award. Any such revision will be regarded as a separate crystallisation of benefits and any additional benefits paid will be based on the standard LTA at the date of event. This will be the later of the payable date or the date that the benefits are authorised.
If you are a member of the 2008 Section of the scheme and have entitlement, you will receive a Pension based on Reckonable Pay. The pension is 1/60th of your Reckonable Pay for each year of Pensionable Service in the Scheme. Part years will also count towards your Pension. There is no automatic Lump Sum, however, you will have the option of taking a Retirement Lump Sum and having a reduced annual pension.
Your Pension is calculated as follows:
Reckonable Pay x Pensionable Service x 1/60
If you choose to take a Retirement Lump Sum you have to give up some of your Pension. You will receive £12 Retirement Lump Sum for every £1 of Pension you give up. The amount of lump sum you can receive is limited to 25% of your total Pension Value.
A midwife retires 28 years and 173 days Pensionable Service with Reckonable Pay of £25,650.
Her Pension is £25,650 x 28.474 x 1/60 = £12,172.62 per year
She decides to take a Retirement Lump Sum when she retires. She receives £12 of lump sum for every £1 of Pension she gives up so chooses to give up £1,500 of her annual Pension to get a Retirement Lump Sum of £18,000.
Her benefits are now; Pension £12,172.62 - £1,500 = £10,672.62 per year. Retirement Lump Sum £18,000
Further information regarding benefits payable at retirement and the options regarding Retirement Lump Sum is available in the 1995 Section and 2008 Section Members Guide available in the Guides section.