I recently received communication that that I have the potential to exceed the Standard Fund Threshold for a Defined Benefits pension. The communication outlined a multiplier to covert my annual pension into a capital value. Prior to 2014, the multiplier is 20; since 2014 the multiplier is 26. I joined the plan in 2006.
The pension is calculated as follows: 2% x Final Pensionable Salary x Pensionable Service
My Question: Is the 8 years (2006-2014) of pensionable service calculated at the 20 multiplier & the remaining contribution at the 26 multiplier?
So, let’s say my defined pension would be €100,000 & I retire with 40 years of service. Is it:
ps Not sure if I was happy to receive the communication or not! ;-)
The pension is calculated as follows: 2% x Final Pensionable Salary x Pensionable Service
My Question: Is the 8 years (2006-2014) of pensionable service calculated at the 20 multiplier & the remaining contribution at the 26 multiplier?
So, let’s say my defined pension would be €100,000 & I retire with 40 years of service. Is it:
(2% x €100,000 x 8 ) x 20 = | €320,000 |
(2% x €100,000 x 32 ) x 26 = | €1,664,000 |
Total Value of Pension = | €1,984,000 |
ps Not sure if I was happy to receive the communication or not! ;-)