Part time working and your pension

If you have ever worked part-time, your pension is first worked out as if you had worked whole-time throughout your service.

An adjustment is then made to take account of the part-time service you have built up, as a proportion of whole-time service.

For example:

If you retire at age 55 having worked whole-time for 20 years and half-time for 6 years (i.e. 26 calendar years) the starting point for working out your pension would be to assume you had worked whole-time throughout those 26 years. Even if you have been working half-time during your final year, average pensionable pay is based on the whole-time pay. Let's suppose it is £36,000.00. The whole-time pension would be –

(20 x 1/60) + (6 x 2/60) x £36,000 = 32/60 x £36,000 = £19,200.00 a year

Then account is taken of the hours actually worked during the calendar length of service:

20 + (1/2 x 6) = 23 years

The whole-time pension is multiplied by the actual length of service as a proportion of the whole-time length to give the "part-time" pension –

23/26 x £19,200.00 = £16,984.62 a year.


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