Martin earns £25,000 in allowances in a year. His annual pension is calculated as follows:
£25,000 x 1/49 = £510.20 per annum
Inflation is added each scheme year (1 April - 31 March).
The table below uses example figures:
| Start Date | End Date | Opening Balance | Pensionable Pay | Pension Accrued | Closing Balance | Inflation | Total Annual Pension |
|---|---|---|---|---|---|---|---|
| 01/04/2024 | 15/02/2025 |
£1,034.22 |
£25,000.00 | £510.20 | £1,544.42 | 3.1 | £1,592.29 |
| 01/04/2023 | 31/03/2024 | £518.87 | £25,000.00 | £510.20 | £1,029.07 | 0.5 | £1,034.22 |
| 01/04/2022 | 31/03/2023 | £0.00 | £25,000.00 | £510.20 | £510.20 | 1.70 | £518.87 |
Martin's pension is paid to him each year from Normal Retirement Age (his State Pension Age) until his date of death.
Martin's annual pension is increased each year in line with Cost of Living (CPI) inflation.