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Question regarding final salary scheme
Cap_Scarlet
Posts: 30 Forumite
Hello
I have a question regarding my assumptions for a final salary scheme.
Situation is the following.
I joined the scheme in 1996 and left five years later in 2001 (so five years contributions), at the time of leaving the scheme I had a salary of 90,000.
In order to get full entitlement you needed 30 years of contributions (and then the scheme calculated a pension based on 30 / 50 which I guess would have been around 54,000). As I left after 5 years am i right to assume i could expect a proportional pension e.g. 5/30 x 54 = 9,000?
Since I left the scheme in 2001 what happens to the final benefit between me leaving and when it actually starts paying out? Are they generally index linked?
I have a question regarding my assumptions for a final salary scheme.
Situation is the following.
I joined the scheme in 1996 and left five years later in 2001 (so five years contributions), at the time of leaving the scheme I had a salary of 90,000.
In order to get full entitlement you needed 30 years of contributions (and then the scheme calculated a pension based on 30 / 50 which I guess would have been around 54,000). As I left after 5 years am i right to assume i could expect a proportional pension e.g. 5/30 x 54 = 9,000?
Since I left the scheme in 2001 what happens to the final benefit between me leaving and when it actually starts paying out? Are they generally index linked?
0
Comments
-
It will be index linked, using RPI, but possibly with a maximum of an average 2.5% or 5% per year.
If it is a public sector scheme its possible (yet to be confirmed & may depend on the specific scheme rules) that the RPI indexation will be replaced with CPI0
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