career salary
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Westland Pension Scheme. Career Salary. This presentation has been prepared to help you understand how your Career Salary benefits are calculated. Your pension value at 6 April 2011. You have earned " Block 1 ". Understand how Block 1 is calculated. - PowerPoint PPT PresentationTRANSCRIPT
Career Salary
Your pension
value at 6
April 2011
Further
Information
Understand how
Career Salary
benefits grow
This presentation has been prepared to help you understand how your Career Salary benefits are calculated
How your Career Salary benefits grow
Earn a “block" of pension each year
Receive revaluation each year
You have earned "Block 1"
Understand how Block 1 is calculated
Understand how your Final Pensionable Salary is calculat
ed
Further reading and information
NOTE- THIS PRESENTATION ONLY APPLIES TO THE MAIN SECTION
You should note that this is a general guide and is not a legal document. It should be read in conjunction with the Scheme booklet. If there is a conflict between this guide and the Rules of the Scheme, the Rules will prevail.
This guide is not a full statement of the rules which governs the Scheme, and members are advised to take independent financial advice on the options available to them.
Career Salary Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Westland Pension Scheme
Pension value at 6 April 2011
Your pension value at 6 April
2011
Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Westland Pension Scheme
1
You have earned Block 1
See pages 2 & 3 for more detail on how Block 1 is calculated
This is calculated using your Final Pensionable Salary on 6 April 2011 and your Pensionable Service before 6 April 2011
Block 1 is the pension you earned from your service before 6 April 2011
Understand how Block 1 is calculated
Your pension value at 6 April
2011
Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Westland Pension Scheme
2
+
+
+
1/70 (or 1/60 or 1/65 if you opted for buy up) x Final Pensionable Salary x Pensionable Service between 1 May 2007 and 5 April 2011 (including additional buy up credit which you were notified of in December 2010)
1/70 x Final Pensionable Salary x Pensionable Service between 1 April 1998 and 30 April 2007
1/65 x Final Pensionable Salary x Pensionable Service before 31 March 1998 (including Old Works Credit)
Pension earned through a transfer in from another pension scheme. You will have been notified how this is calculated when you transferred in your benefits
See page 3 to understand how your Final Pensionable Salary is calculated
Your Final Pensionable Salary is calculated on 6 April 2011
Calculating your Final Pensionable Salary
Your pension value at 6 April
2011
Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Westland Pension Scheme
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Sch
eme
Yea
r
0 5 10 15 20 25 30 35Pensionable Salary (£,000)
Protected Salary is the highest one year in these five years. It is increased in line with inflation up to 6 April 2011. We know this is an increase of 10.9%.
Three year average salary is the average of the best three consecutive years in ten years from 6 April 2001 to 6 April 2011.
Your Final Pensionable Salary is protected by the underpin agreed in 2007.
Final Pensionable Salary is higher of:
(1) Protected Salary
And
(2) Three year average salary
Protected Salary = £27,000 plus 10.9% = £29,943
Three year average salary = (£29k + £30k + £31k)/ 3 = £30,000
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23
24
25
26
27
28
29
30
31
3
4
Westland Pension Scheme
One year on - you will add revaluation and Block 2
Each year your pension grows by:
a) “revaluation”; and
b) a new “block” linked to your Pensionable Salary.
Understand how Career Salary
benefits grow
Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Scheme year: 6 April to 5 April (like tax year)
How your Career Salary benefits grow
5
Your pension is revalued each year broadly in line with inflation
Revaluation
Understand how Career Salary
benefits grow
Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Westland Pension Scheme
Revaluation rate:
Increase in Consumer Price Index for year (capped at 4.75%)
(measured in September)
How to calculate
Total Pension at start of the Scheme Year x Revaluation rate
By way of example2011/12: Total Pension at 6 April 2011 x Revaluation rate at September 20112012/13: Total Pension at 6 April 2012 x Revaluation rate at September 2012
6
Westland Pension Scheme
Understand how Career Salary
benefits grow
Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Scheme year: 6 April to 5 April (like tax year)
Your “block” is calculated using your accrual rate and salary in that year
Earning Blocks
Accrual rate: The default accrual rate is 1/67th You may “buy up” to 1/65th or
1/60th
Pensionable Salary: Your gross earnings in the
relevant year (except payments that are not pensionable)
How to calculate
Accrual rate x Pensionable Salary in 2011/2
7
Your Career Salary benefits grow
Understand how Career Salary
benefits growPrepared on behalf of the Trustees – May 2011
NextPrevious Contents
Westland Pension Scheme
Build up your pension each year
Each year your pension grows by:
a) “revaluation”; and
b) a new “block” linked to your Pensionable Salary. Block 6 and so on
for the rest of your career with AgustaWestland
Scheme year: 6 April to 5 April (like the tax year)
If you would like to understand more about your pension benefits, take time to read the Scheme booklet.
You will receive a benefit statement in the Autumn which will explain your benefits as at 6 April 2011.
The Scheme website contains useful information about the Scheme’s benefits.
Contact Aon Hewitt if you would like further information.
Further reading and information
Further information Prepared on behalf of the Trustees – May 2011NextPrevious Contents
Westland Pension Scheme
8
Contact Aon Hewitt if you have any questionsEmail: [email protected]
Write to: Westland Admin Team, Aon Hewitt, 25 Marsh Street, Bristol, BS14AQ.
Telephone: 0117 945 3517