(a) 3/80ths of final remuneration for each year of actual service
(so 99/80ths in your case)
or
(b) (N/NS) x LS
N = number of actual years of service
NS = number of years of potential service to NRA
LS = the maximum lump sum receivable had you served until NRA (120/80ths)
What happens if the person leaves the company first?
In the example above, what happens if the person leaves the company at age 55 after 30 years service, but doesn't take retirement benefits until age 58 per the example? Say €50,000 salary when leaving the company as before.
Calcs are based on Actual Service Vs Potential Service (staying in service to NRA), so the 3 years between leaving the company & taking benefits are not included in the calc.
You could though increase the final salary figure in line with CPI over that 3 year period
related question if you have a deferred pension and two defined contribution schms from previous employements do you get the tax free cash proportionally from each scheme or from one that you early retire from ?