How will the pension be calculated in the new scheme?
This is a final salary pension scheme with the pension based on final pensionable salary (ie excluding additional pay) and length of service. The highest pensionable earnings will in most cases be in the final 12 months before retirement. However, the last 3 complete tax years will also be considered, with pensionable earnings in the two earlier years increased by inflation. If any of these is higher than the last 12 months, it will be used as the basis for the pension calculation.
