A public servant has asked me to estimate their possible work pension.
They joined the PS after 1995.
I am using the formula:
work pension = (years service) * (final salary) * (1/200)
This applies to wages under approx 40k.
So for somebody on 25k with 10 years service, I am getting:
(10)(25,000)(1/200) = 1250 pension per annum.
This is low, as expected, due to short service, and due to the State Pension making up most of the integrated total pension benefits.
Does this calculation look ok?
I realise there is a tax-free lump-sum as well.
They joined the PS after 1995.
I am using the formula:
work pension = (years service) * (final salary) * (1/200)
This applies to wages under approx 40k.
So for somebody on 25k with 10 years service, I am getting:
(10)(25,000)(1/200) = 1250 pension per annum.
This is low, as expected, due to short service, and due to the State Pension making up most of the integrated total pension benefits.
Does this calculation look ok?
I realise there is a tax-free lump-sum as well.