What is a hypothetical calculation and when are such benefits put into payment?
A. An award of teachers’ pension benefits is normally calculated as mentioned above. However, if a member has a break or breaks in pensionable service after 1.4.1972 and has sufficient service to qualify for retirement benefits at the break a hypothetical calculation is done. This calculation is based on all of the members pensionable service* (in the same way as the normal calculation of benefits) but uses an average salary calculated at the break with appropriate pensions increase applied to the benefits from the deemed date (the day after the average salary period used). These benefits are then compared with the normal calculation of retirement benefits and the most beneficial are put into payment. Note that the hypothetical average salary will be calculated as mentioned above depending upon if the break is before or after 1 January 2007. This calculation is only done at the point of retirement.
Related Questions
- Does classifying the SRI payment as wages impact a retirees benefits if he or she is receiving social security income, but is not yet exempt from the "earnings test" based on age?
- Does payment of TSGLI benefits reduce the amount of SGLI payable at the time of the Servicemembers death?
- What is a hypothetical calculation and when are such benefits put into payment?
