Joan is a member of a
defined benefits scheme with a non-uniform accrual
rate of 1/40th of pensionable earnings for each year in the scheme.
She has no other pension rights from earlier employments.
On 5 April 2006 she is aged 50, is still in pensionable
service, has pensionable earnings of £90,000 and has completed
20 years pensionable service. On 10 December 2003, her normal
retirement age under the scheme was 60.
For the purposes of the valuation her entitlement under the
arrangement Joan is assumed to be age 60 and she has a pension of
£45,000 (20/40 x £90,000) with a value of £900,000
(20 x £45,000).
| Glossary ( RPSM20000000) |
