Pensions and Equal Pay (3)

Here's another post from the blog site archive about pensions and equal pay - this time with some more examples of the big difference a pensionable settlement could make to a claimant's retirement benefits.

  

North Lanarkshire Update (20/03/16)

I wrote recently about the significance of equal pay settlements being processed on a 'pensionable basis'.

Now this does not apply to everyone, only to people who retired before 2012, but the benefits are potentially considerable.

So here are a few examples to illustrate the difference that a pensions based settlement would make to a person's lump sum and annual pension - along with an indication of the likely cost.  

The only health warning is that these are 'broad brush' examples and that individual outcomes would vary depending on a person's length of pensionable service, hours of work and the amount of their equal pay settlement.

		Based on a £15,000 Annual Salary			Based on a £15,000 salary  with a £15,000 settlement over 5 years.
Category	Number of years in Pension	Current Pension Entitlement per Year	Current Standard Tax Free Lump sum	Total Cost for making settlement Pensionable	Pension per Year with Settlement	Lump Sum Payment with Settlement	Increase in Pension Per Year	Increase in Tax Free Lump Sum	Life Time Benefit for the cost of £825
Example 1	10	£2,500	£5,625	£825	£3,000	£6,750	£500	£1,125	£12,125
Example 2	20	£5,000	£11,250	£825	£6,000	£13,500	£1,000	£2,250	£24,250
Example 3	30	£7,500	£16,875	£825	£9,000	£20,250	£1,500	£3,375	£36,375

If any A4ES clients would like more detailed information about their individual situation, please contact Karl in the Action 4 Equality Scotland office.

Action 4 Equality Scotland

Here are contact details for Action 4 Equality Scotland - including a new telephone number . 

Action 4 Equality Scotland
10 York Place
Edinburgh
EH1 3EP

Email: enquiries@action4equality.co.uk

Phone: 0131 659 9958