Final Salary pension

MABLE

I have been advised that my fs is closing from the 1st April 2008. However I pay for added years on a monthly basis. I have contacted our pensions dept and ask them if I can make a lump sum payment before the scheme closes etc.

Today I have received a letter from them advising me I can obtain a further 1 month for £360, which is £12. a day. They have asked me send a cheque within the next 14 days. My question is if I pay the amount requested how much would I receive in pension for this amount. If not enough information can you advise me what information I need to get from my employer.

With many thanks,

david78

If you are in a scheme that pays 1/60 of your final salary for each year of service, then you can calculate the additional pension amount as:

current tax free salary X 1/60 X 1/12.

So if your current Salary is £20,000 you will get another £27 per year.

MABLE

david78 wrote: »

If you are in a scheme that pays 1/60 of your final salary for each year of service, then you can calculate the additional pension amount as:

current tax free salary X 1/60 X 1/12.

So if your current Salary is £20,000 you will get another £27 per year.

Thanks for the very informative post. Also with the paperwork they sent me my employer states they will issue me with tax cert to claim back tax but bearing in mind the calculation it really dosnt seem worth paying the additional sum or have I missed something.

CLAPTON

One needs to know your current salary, your age and the retirement age of the pension scheme..
but in immediate terms 27 per annum for 360 works out at 7.7% gross but presumably indexed linked... where else do you get that?