Double accrual service for former FPS 1992 members is protected by a formula in the scheme rules.
The formula proportions the expected double accrual benefit if the member had stayed in the FPS 1992 by the service built up in the FPS 1992 before moving to FPS 2015.
The formula is expressed as A/60 x B/C x APP
- APP is the person’s average pensionable pay,
- B is the period in years of the person’s pensionable service until the day before their transition date,
- C is the period in years of FPF 1992 pensionable service and of FPS 2015 pensionable service (subject to a maximum of pensionable service of 30 years),
- A is the sum of E + (F x 2) and must not exceed 40 years.
- E is the period in years of total pensionable service up to 20 years,
- F is the period in years by which total pensionable service exceeds 20 years.
For example a member who would have achieved 30 years’ service and is moved into the FPS 2015 with 27 years’ service, would be calculated as [40/60] x [27/30] x APP
40 ÷ 60 x 27 ÷ 30 x £30,000 = £18,000
This formula is sometimes expressed another way using the table below. That is because 30 ÷ 45 is the same as 40 ÷ 60; they both equal 0.667, or expressed another way 2/3rds.
For example, the accrual rate of a member that has a total of 30 years in both schemes would be 1/45th, and that accrual rate would be applied to the actual service in the FPS 1992.
Using the above example of a member with 27 years' service in FPS 1992, their benefits using the table would be calculated as 27 years x 1/45ths.
|adjusted Service||times||APP||equals||Pension per annum|
|40 ÷ 60 x 27 ÷ 30||x||£30,000||=||£18,000|
|27 ÷ 45||x||£30,000||=||£18,000|
|27 x 1.333 ÷ 60||x||£30,000||=||£18,000|
The table below shows the double accrual guarantee multiplier and fraction for each year of service from 20 to 30.
|Total continuous pensionable service upon retirement in FPS 1992 and FPS 2015||Multiplier applied to FPS 1992 service to recognise expectation to double accrual||Fraction that years of FPS 1992 service is converted to|
|20 or less||1.000||1/60th|