{"id":252,"date":"2018-07-12T08:47:06","date_gmt":"2018-07-12T08:47:06","guid":{"rendered":"http:\/\/pensions.cardiffcouncilwebteam.co.uk\/?page_id=252"},"modified":"2019-02-28T09:23:24","modified_gmt":"2019-02-28T09:23:24","slug":"calculating-your-benefits","status":"publish","type":"page","link":"https:\/\/www.cardiffandvalepensionfund.org.uk\/members\/calculating-your-benefits\/","title":{"rendered":"Calculating your Benefits"},"content":{"rendered":"

[vc_row][vc_column width=”1\/1″][vc_column_text]<\/p>\n

Calculating your benefits<\/h1>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row top_padding=”40″][vc_column width=”2\/3″][vc_column_text]All pension benefits built up from 1 April 2014<\/strong> will be calculated on a Career Average Revalued Earnings (CARE)<\/strong> basis.[\/vc_column_text][vc_tta_accordion style=”flat” shape=”square” color=”white” active_section=”12″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Calculating your CARE benefits” tab_id=”carebenefits”][vc_column_text]The amount of pension you build up is based on your actual pensionable pay. Each year 1\/49th of your pensionable pay and any assumed pensionable pay is put into your pension account. At the end of the year the pension you have built up increases in line with the cost of living \u2013 Consumer Price Index (CPI).<\/p>\n

So the calculation would be based on:<\/p>\n

Actual Pensionable Pay from 1 April to 31 March\u00a0\u00f7 49 =\u00a0Annual Pension<\/strong><\/p>\n

When you retire you will also have the option to exchange part of your pension for a tax free lump sum \u2013 this is known as commutation. You are able to commute up to 25% of the capital value of your benefits. For every \u00a31 of pension you exchange, you will receive \u00a312 of cash lump sum.<\/p>\n

\u00a31 pension = \u00a312 tax free cash lump sum<\/p>\n

Any non-contractual overtime worked will be included in the calculation of your pension.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][vc_column_text]All pension benefits built up\u00a0on or before 31 March 2014<\/strong>\u00a0will be calculated on a\u00a0Final Salary<\/strong>\u00a0basis when you retire, but using your pensionable pay at the time of retirement.[\/vc_column_text][vc_tta_accordion style=”flat” shape=”square” color=”white” active_section=”12″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Calculating your Final Salary benefits” tab_id=”finalsalary”][vc_column_text]Your Final Salary pension benefits are calculated differently depending on when you built them up.<\/p>\n

Pension Benefits built up to 31 March 2008<\/strong><\/p>\n

Your pension benefits built up before 31 March 2008 will be calculated at 1\/80th of your final pay at the date of your retirement, together with an automatic lump sum.<\/p>\n

Membership (years and days)\u00a0\u00f7 80 x Final Pay at retirement =\u00a0Annual Pension<\/strong><\/p>\n

Annual Pension x 3 = Automatic tax free lump sum<\/p>\n

Plus, you still have the option to exchange some of your pension for an additional lump sum.\u00a0For every \u00a31 of pension you exchange, you will receive \u00a312 of cash lump sum, up to a maximum of 25% of the capital value of your benefits.<\/p>\n

\u00a31 pension = \u00a312 of tax-free cash lump sum<\/p>\n

Pension Benefits built up from 1 April 2008 to 31 March 2014<\/strong><\/p>\n

Your pension benefits built up from 1 April 2008 to 31 March 2014 will be calculated at 1\/60th of your final pay at the date of your retirement, with no automatic right to a lump sum.<\/p>\n

Membership (years and days)\u00a0\u00f7 60 x Final Pay at retirement =\u00a0Annual Pension<\/strong><\/p>\n

You have the option to exchange some of your pension for a tax -free lump sum (up to a maximum of 25% of the capital value of your benefits).\u00a0For every \u00a31 of pension you exchange, you will receive \u00a312 of cash lump sum.<\/p>\n

1 pension = \u00a312 of tax-free cash lump sum[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][vc_column_text]When you retire your Final Salary and CARE benefits will be added together to give you your total pension benefits. You will also be given the option to give up part of your pension to receive tax free cash (also known as a commutation).<\/p>\n

If you have built up any pension benefits before 2008 you will have an automatic lump sum in respect of these pension benefits. This lump sum will be in addition to the lump sum you receive from giving up part of your pension.<\/p>\n

Further Protection<\/h2>\n

When the scheme changed on 1 April 2014 further protections were put in place to protect members who were close to retirement age.\u00a0 This was to ensure your pension remains equal to the pension you would have received if the scheme had not changed.<\/p>\n

The protection applies to you if you were:<\/p>\n