Adjusting for part time
If you work part time, your contributions are adjusted to reflect this. They are based on pensionable earnings (between the two levels), but reduced in line with the number of hours you actually work compared with ‘full-time’ hours.
Example
If you work three days a week on £12,000 pensionable salary:
£12,000 adjusted upwards to the ‘full-time’ equivalent is £12,000 x 5 (days in a full working week) then divided by 3 (the days you work) = £20,000.
Take away the lower level: £20,000 – £5,032 = £14,968.
Adjust back down for working 3 days a week: 3/5 x £14,968 = £8,980.80.
So, your contributions – and your pension for that year – will be based on £8,980.80 a year.
40-year limit on contributions and benefits
You may not contribute towards benefits in the Career average plan for more than 40 years, so your Career average plan benefits are also limited to a maximum of 40 years.