The 2008 Section
From the 1st April 2008 this section was launched and all new joiners after this date automatically become members. Members of the 1995 at that time could also have elected to move their 1995 Section into this new one via the Pension Choice Exercise. This section does differ slightly from its predecessor as follows:
- It is based upon a 60th accrual rate for each whole reckonable year
- There is no automatic lump sum payable (unless you were previously a member of the 1995 scheme, in which case you will have a mandatory lump sum entitlement). You are able to exchange part of your pension for lump sum benefits subject to certain limits
- The reckonable salary is based upon the best three-year average in the last 10 before you claim the benefits
- There is a standard retirement age of 65, with the ability to take benefits from the age of 55
- There is the ability to take benefits early, from the age of 55, but there will be a reduction to the starting amount
- You also have the ability to ‘drawdown’ and claim your pension without the need to retire. From October 2023 this is up to 100% of your accrued benefits
- There is a death in service lump sum payment. This is broadly twice your 2015 pensionable pay
- On your death an annual adult survivor pension and child pension may be payable
- You pay contributions of on a scale made up of 11 levels based upon your reckonable pay
- Pensions in payment increase in line with inflation, CPI (consumer price index)