LGPS Calculators

How is my pension worked out - An example

Let's look at the build up in a member's pension account for 5 years in the scheme. 

Let's assume that the member joins the scheme on 1 April 2014, that their pensionable pay is £24,500 in scheme year 1 and their pensionable pay increases by 1% each year. Let's also assume that the cost of living (revaluation adjustment) is 3% each year. 

Scheme Year	Opening Balance	Pension Build up in Scheme Year Pay/  Build up rate = Pension	Total Account 31 March	Cost of Living Revaluation Adjustment	Updated Total Account
1 2014/15	£0.00	£24,500/ 49 = £500	£500	3% = £15	£500 + £15 = £515
2 2015/16	£515	£24,745/ 49 = £505	£1,020.00	3% = £30.60	£1,020.00 + £30.60 = £1,050.60
3 2016/17	£1,050.60	£24,992.45/ 49 = £510.05	£1,560.65	3% = £46.82	£1,560.65 + £46.82 = £1,607.47
4 2017/18	£1,607.47	£25,242.37/ 49 = £515.15	£2,122.62	3% = £63.68	£2,122.62 + £63.68 = £2,186.30
5 2018/19	£2,186.30	£25,494.79/49 = £520.30	£2,706.60	3% = £81.20	£2,706.60 + £81.20 = £2,787.80

For a more in-depth look at how a pension account works, try the interactive Pensions Account Modeller and to find out how much you will pay in contributions, try the Contributions Calculator.​