Calculation of benefits for part time members How benefits at 31/03/07 are calculated for a member who is part time. Membership Mrs Smith joined the Greater Manchester Pension Fund on 01/04/2003. She has always worked 18 hours and the full time hours for her job are 36 hours a week.

So at 31/03/2007, Mrs Smith had been in the Fund for 4 years. To work out her membership for the calculation of her benefits, we reduce the 4 years to reflect the hours she worked. 

4 years x 18 hours / 36 hours = 2 years

Pay
Mrs Smith’s pay over the period from 31/03/2006 to 31/03/2007 was £6200.00. To work out the pay to be used for calculating her benefits, we increase the amount to give a full time figure.

£6200.00 x 36 hours / 18 hours = £12400.00

Mrs Smith’s benefits at 31/03/07 shown on her illustration are:

Pension: £12400 x 2 years / 80 = £310

Lump Sum: 3 x £310  = £930

How benefits at 65 are calculated
When Mrs Smith reaches her 65th birthday, she will have been in the Fund for exactly 20 years. To calculate the current value of her benefits at age 65, we use her pay as calculated above and use the hours she was working at 31/03/2007 to estimate her membership at 65.

20 years x 18 hours / 36 hours = 10 years

Mrs Smith’s benefits at age 65 shown on her illustration are:

Pension: £12400 x 10 years / 80 = £1550

Lump Sum: 3 x £1550 = £4650

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