pension strain, how to calculate

thebinman

thats the question,anyone know how this formula works
as just been told that because of this pension strain cost
no voluntary redundancy for me,as its just to expensive
lgps 30 years service,age 55.

yelf

30 years x either 1/60 or 1/80 depedning on scheme.

thebinman

hi yelf
thanks for reply, i understand the 1/60 or 1/80 part ( its 3/60 or 3/80
being the calculation for annual pension+lump sum x age x years in service) i didnt make my question very clear in my post (sorry)

the calculation im looking for is the cost to employer for releasing the
pension early and is proving to be elusive.

employer says cant tell you,ask the pensions section,pension section says ask the employer ( its like cia,mi5,kgb all rolled into one)

i have done the usual google,but with limited results

i seems to be in the area of 14% of annual wage x years left till retirement age ( this being,as no contributions from employer or employee into the fund ,the employer is charged a fee this being called a strain charge for early release of pension)

as my pension lump sum was 24k +plus annual pension 8.5k they said the strain charge was to be 35k and this was a no no so no redundancy

hope this clears up a few points
many thanks in advance

Andy_L

The calculation is something of an irrelevance to you. The employer, as they have to fund the extra cost of early retirement, can simply resfuse to pay it

thebinman

very true but would still like to know the calculation.if anyone could enlighten me