At Normal Retirement Age
Your pension is flexible. You can choose to use it all to provide a monthly income, take part of it as a lump sum on retirement or transfer out to an external provider. Your pension is paid from the day you choose to draw it.
The amount you get
Your pension is based on
- your membership of NAPS up to 31 March 2007, plus
- your membership of NAPS Plan 65 or Plan 60 from 1 April 2007 up to 31 March 2018 (or the date you left the Scheme, if earlier).
An outline of the two different calculations is shown below.
Your Pre 2007 service pension is worked out as a percentage of your pensionable salary based on the years, months and days that you were a member of the Scheme up to 31 March 2007 (your Pre 2007 Pensionable Service). This part of your pension is due at your old Normal Retirement Age (NRA), which is age 55 for Flying Staff, or age 60 for Ground Staff.
| Your Pre 2007 basic pension | = |
(your Pensionable Service to 31 March 2007 x your Retiring Pay)
divided by 52 Build-up rate (Flying Staff) or by 56 Build-up rate (Ground Staff). |
If you paid higher contributions to have your pension worked out on a faster Build-up rate, we will use this Build-up rate for the period during which you paid for the faster rate.
CloseYour Post 2007 service pension is worked out as a percentage of your Pensionable Salary at the date you left the Scheme, based on the years, months and days that you paid contributions to the Scheme from 1 April 2007 (your Post 2007 Pensionable Service).
| Your Post 2007 basic pension | = |
(your Pensionable service from 01/04/2007 x your Retiring Pay at retirement)
divided by 75 Build-up rate. |
Alternatively, you could choose to pay more, or less, than the standard contributions to build up your pension at a faster rate (e.g. 1/67 or 1/60) or slower rate (e.g. 1/83).
Your pension will normally increase each year once it is being paid to you in line with the rate specified within the Government's Pensions Increase (Review) Orders, up to a maximum of 5% a year.
CloseYou can exchange part of your pension for a tax-free lump sum on retirement.
This is currently paid tax-free. HM Revenue and Customs sets a limit for the amount you can take. If you choose this option, there will be less money for your monthly pension.
You also give up the future annual increases on any pension you exchange for a lump sum and the pension is given up for life. Any Adult Survivor's pension and Dependent Children's allowances remain unaffected.