Deferred NHS Benefits

dibdabable

Hi All.
I'm terrible at maths so wanted to check what I'm doing. If someone has a deferred pension in the NHS, I understand that originally it was linked and grew with the RPI and since 2011 it's linked to CPI.
Without contacting NHS Pensions and asking for an estimate of benefits, if I wanted to work out a pension that was deferred in 2003, is there a simple way of calculating what that pension would be worth now. Say the annual pension was worth £5000 in 2003.

Is it simply a case of multiplying £5000 by the % of RPI each year from 2004 and adding it to the total each year and continue to do this until 2011, then do the same but with CPI ?

If you could tell me as if I was about 12yrs old, I'd appreciate that. (You think I'm joking)!! :rotfl:

Many thanks.

molerat

Yes that is the way. I did the same with my deferred pension and after 15 years my figure was £18 pa out. The first year is usually the problem figure as you leave employment part way through the year so do not have a full year to base the inflation uplift on.

dibdabable

So do you mind me asking what it was to begin with?

I did a rough working out and the reason for me asking and checking if it was correct was because it seemed to be good to be true!!

hugheskevi

You can use the tables at this link..

Looks like it will be worth about £7,000 p/a.

dibdabable

Thanks. Can't open the links for some reason, m computer not your links, but did find a list of RPI and CPI since 2003.

Well the main thing is it's better than I thought, so thanks.