Example of a part-time member with zero McCloud Guarantee Amount

Member Details

  • Contracted hours: 18.5 hours per week
  • Full-time equivalent (FTE) hours: 37 hours per week
  • Part-time fraction: 50%
  • Final pensionable pay (FTE): £42,000.

Step 1: Calculate CARE pension built up during Remedy period

Assume the member accrued and revalued CARE benefits during the underpin period as follows:

YearCARE pension accrued
2014/15£400
2015/16£410
2016/17£420
2017/18£430
2018/19£440
2019/20£450
2020/21£460
2021/22£470

Total CARE pension at retirement after revaluation is £3,650 per year.

Step 2: Calculate hypothetical final salary pension

Assume:

  • Remedy membership = 8 years
  • Final pensionable pay = £42,000

Pensionable membership: 8 years × 50% = 4 years
Final salary accrual rate = 1/60
4 years × 1/60 × £42,000 = £2,800 per year.

Hypothetical final salary pension: £2,800 per year.

Step 3: Compare CARE and Final Salary Benefits

BenefitAnnual Pension
CARE pension£3,650
Hypothetical final salary pension£2,800

Because the CARE pension is higher than the final salary comparison pension, there is no additional pension due as a result of McCloud protection.