My employer’s pension scheme is a final salary one. How is the employer contribution calculated in this case?
At the end of the year your pension earned under the scheme is calculated and measured against that which applied at the beginning of the year. The difference between the two amounts is then multiplied by 10 and that figure is taken as the value of the contributions in that year. Your own contributions are ignored in the calculations. Although money purchase AVC payments are counted as additional payments.
