Other benefits

There are other benefits which are affected by a reduction in hours and a reduction in pay:

Death benefits

A lump sum death grant is payable in the event of your death in service and is 3 times your annual pensionable pay. If your pensionable pay reduces, your lump sum death grant will be less than it would have been.

Survivors' pensions payable in the event of your death are calculated using your pensionable pay. If your pensionable pay reduces any survivors' pension will be less than they would have been.

Ill health benefits

If you retire on the grounds of ill health you may receive an enhancement of pension. Any enhancement would be based on your reduced pensionable pay, unless your employer determines your hours were reduced because of your ill health.

Redundancy

Although redundancy pay (the lump sum paid by your employer) is not related to pension scheme membership it should be noted that it is calculated using your actual pay at the date you are served notice. Therefore if you reduce your actual pay your redundancy pay may be affected.

Paying additional contributions

If you are buying an additional amount of pension, it is unaffected as this is a set amount each month regardless of pay.

Before 1 April 2008 members could purchase extra years of membership by paying extra contributions as a percentage of their pay. If you are purchasing extra years and you reduce your hours, and therefore your pay, the amount of the extra contributions will reduce and so will the amount of membership being purchased.