Part Time employee – how is my pension calculated if I work part time?


Question:
Part Time employee – how is my pension calculated if I work part time?
Answer:

Your pension is calculated in the usual way, using your full time equivalent salary, but the service accrued is proportionate to your part time service fraction. For calculation purposes, your full time equivalent salary will be used in that period of membership where you work part time. For example, if you work 50% of full time hours with a part time salary of £20,000pa, for each year you work you will accrue ½ a year and your full time equivalent salary for calculation purposes will be £40,000pa. Therefore, if you work 10 years you will have accrued 5 years service and your full time equivalent pay will be £40,000pa.

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08/12/2016