Originally Posted by
Lima Juliet
No it’s 51-ish% of your annual salary, not total. Further, until recently it was final salary and now is career-averaging. But it is still one of the best pensions out there - way better than recent company ones that you can get, which are linked to the vagaries of the stock market.
LJ,
I was referring to annual salary not final salary - apologies if I wasn't clear. It is all rather confusing though, because the publications issues to serving personnel clearly state that
every year, the MOD adds an amount equal to 1/47th of your annual pensionable earnings for that year, to your individual ‘pension pot’.
https://assets.publishing.service.go...YPSE_FINAL.pdf
However, having delved into the bowels of the original publication, Annex F sheds a dim light on the difference. Put simply, I think the 51ish% relates to the capital value that needs to be squirreled away to provide the member's benefits in any given year based on the 1/47 accrual rate. But, and it's a big but, Annex F goes on to note that all these calculations are notional - there is no actual fund and we don't actually get 51% added to our effective remuneration package. If only we did, might keep some more people in.