If you work on a part-time basis the earnings that count towards your pension will be proportionately less than if you worked full-time.
If you work full-time or part-time, your pension is accrued in the same way. For each scheme year during which you are an active member, you accrue 1/55.3rd of your pensionable earnings for that year.
The amount of accrued earned pension in the pension pot at the end of the scheme year is then uprated in line with CPI + 1.25% whilst you are still an active member and in line with the Consumer Price Index (CPI) once the pension is put in payment or you are a deferred member.
The retirement pension payable to you from the 2015 Scheme is calculated based on the amount of accrued earned pension in the pension pot when you retire.
Example
A 30-year-old active member works part-time with 40% hours and is paid £8,400 for the first scheme year in which s/he was an active member (so that his/her full-time equivalent pensionable earnings are the same as the active member in the example provided on Benefits on retirement). The calculation of this member’s pension will follow the same process as in that example but using this member’s actual pensionable earnings.
Assuming that his/her pensionable earnings continue to grow by 1% per year and CPI increases by 2% per year, this member will receive a pension of around £8,800 per year on retirement from active service at normal pension age (note that this is 40% of the pension of the full-time member in the example provided on Benefits on retirement).
At retirement, the member has the option to commute pension for lump sum at a rate of £12 of lump sum for every £1 of pension given up. The commutation lump sum cannot be larger than 25% of the value of the member’s pension.