ABSTRACT
Many pension schemes are based on 1/80th, in which case the fraction will be years of service divided by 80 multiplied by highest salary in the last three years, eg Teachers Superannuation Scheme. Benefits greater than 1/60th of final remuneration for each year of service may be paid to a maximum of 1/30th of final remuneration for each year’s service (up to 20 years) provided that the aggregate of benefits in respect of service with the current employer together with any retained benefit does not exceed two-thirds of final remuneration (para 7.4). The limit in para 7.4 is restricted in respect of money purchase schemes and benefits payable from such a scheme prior to the
(whether or not entitled to continued rights) who has left pensionable service prior to that date, ie is a deferred pension which represents the greater of:
An employee without continued rights may not be provided with benefits calculated by reference to any measure of earnings greater than the permitted maximum. Thus, in a scheme within an accrual rate of 1/80th of final remuneration for each year’s service a member earning more than permitted maximum cannot be provided with benefit in excess of 1/80th of the maximum permitted for each year of service, except by virtue of an augmentation provision made in the trustees rules (para 7.6).
