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Commuting Pension Formula

irri_tant · 2013-07-30 10:56:57

I’ve been offered VR from work. I’m looking for the formula to work out how much I would get as a lump sum and pension should I choose to commute say 10%, 11%, 12% etc, rather than just the 25% figure they quote all the time. 25% commute = £129,500 plus pension of £15,860

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atush Posts: 18,731 Forumite

1 August 2013 at 1:18PM

irri_tant wrote: »

Pension scheme is as follows.

Defined Benefit (“DB”)
Pension of 1/60th of final salary for each year of service
Risk lies with scheme sponsor

given we don't know your salary, you need to give us the FULL pension amt w/o any LS to calculate the commutation rate.

Or, you could just call them up and ask? Then get back to us.

We also need to know the scheme age, and if it will be actuarily reduced

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Commuting Pension Formula

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