How Does My Pension Build Up?
How Does My Pension Build Up?
Your pension is worked out as follows:
- Step 1: Divide the Pensionable Pay you received in the financial year (April-March) by 49
- Step 2: Add that value to your pension account
- Step 3: Increase or decrease the money in your pension account in line with the cost of living (Consumer Prices Index - CPI)
- Step 4: Repeat steps 1- 3 the following year, and every year you are in the Scheme
If you are in 50/50, where you pay half the contributions and build up half the pension, the above steps are the same except your pay is divided by 98 rather than 49.
