Your pension

• You and the Scheme
• Membership
• Contributions

• About contributions
• Paying in extra

• Benefits when you retire

• About benefits when you retire
• Your pension
• When you can retire
• Retiring due to ill health
• Tax-free cash

• Death benefits

• Death in retirement

• Leaving
• Divorce or dissolution of a civil partnership
• The State Pension
• More about the Scheme
• Annual and Lump Sum Allowances

Pension

Your pension at age 60 is based on your pensionable service and your final pensionable pay. You earn pension at the rate of 1/60th of pensionable pay for each year (and increased in proportion for each additional day) of pensionable service.

Example

You retire at your normal retirement date after 25 years’ full time pensionable service and your final pensionable pay is £15,000. Your pension would be:

Please note your actual pension calculation will be adjusted if any of the following occur:

• Any pension you built up before 31 December 2006 may be increased to allow for late payment, if your normal retirement date changed from age 60 to 65 on
  1 January 2007.
• For any periods of part-time employment, your pensionable service will be
  pro-rated to take account of the actual number of hours you worked.
• If, for any period of pensionable service you were not contractually employed to work a set number of hours a week, the RNLI and Trustees decide, on actuarial advice, a suitable method of adjusting your pensionable service and pensionable pay.
• If you had any periods of unpaid leave.
• Once in payment your pension will increase in line with Scheme rules and legislation.

Pension payments

Your pension will be paid in advance – usually on a monthly basis. Monthly payments are made on the first of each month, apart from in April, which is paid on the first working day after 6 April. The first payment may therefore be a proportionate amount, depending on when you retire.

Quarterly payments in January, April, July and October are available but are not encouraged as this payroll is not fully automated.

Your pension is paid into your bank or building society account. Tax is deducted under the PAYE system.

You will not receive a regular payslip but you will be sent a letter from the RNLI Payroll Department if your tax code changes or your pension increases by more than £10 or €10 a year.

UK pensioners are posted a P60 at the end of April each year by the RNLI's Payroll team. This confirms the amount of pension paid in the last tax year and the amount of tax, if any, that has been deducted. Pensioners in Ireland need to access their 'Employment Details Summary', through 'My Account' on the Irish Revenue's website.

Pension

Your pension at normal retirement date is based on your pensionable service and your final pensionable pay. You earn pension at a rate of 1/50th of pensionable pay for each year (and increased in proportion for each additional day) of pensionable service.

Example

You retire at your normal retirement date after 25 years’ full time pensionable service and your final pensionable pay is £15,000. Your pension would be:

Please note your pension calculation will be adjusted if any of the following occur:

• For any periods of part-time employment, your pensionable service will be pro-rated to take account of the actual number of hours you worked.
• If, for any period of pensionable service you were not contractually employed to work a set number of hours a week, the RNLI and Trustees decide, on actuarial advice, a suitable method of adjusting your pensionable service and pensionable pay.
• If you draw your pension late it may be increased.

Pension payments

Your pension will be paid in advance – usually on a monthly basis. Monthly payments are made on the first of each month, apart from in April, which is paid on 6th. The first payment may therefore be a proportionate amount, depending on when you retire.

Quarterly payments are paid on 6th January, April, July and October. The quarterly payments are discouraged as this payroll is not fully automated.

Your pension is paid into your bank or building society account. Tax is deducted under the PAYE system.

If you wish your pension to be paid into a non-UK bank account, the cost of the bank transaction will be deducted from your pension before it is paid to you.

You will not receive payslips but you will be sent a letter from the RNLI Payroll Department if your tax code changes or your pension increases by more than £10.