Working Part Time
How working part time affects your pension
Changing the hours you work will affect the amount of pension you build up each year, from that point onwards.
If you reduce your hours the amount of future pension you build up will be less. If you increase your working hours, the amount of future pension you build up will be more. This is because your pension from 1 April 2014 is calculated using the actual pay you earn each year – if you change your hours, your pay is also likely to change.
Changing your hours may also affect any death benefits that may be payable.
If you choose to reduce or increase your hours and have built up pension benefits from before 1 April 2014, this part of your pension will always be calculated using your full time equivalent pay. Changing your hours will not affect this however, if you work part time, the membership you have accrued is proportioned based on the hours you have worked. It is not calculated at full calendar length like it is for full time members.
The contribution amount you pay each month is based on your actual pay and not the full time equivalent. So if your pay reduces, so will the amount that you contribute.
Example
Mrs Jones joined the LGPS in 2010 and has always worked full time. From 1 April 2020, she decides to reduce her hours from 36 to 18 per week. Her full time pensionable salary is £20,000. This is how her pension is affected by reducing her hours:
| Year | Amount added to her pension | Main scheme contribution rate |
|---|---|---|
| 2019/2020 | £20,000 / 49 = £408 added to her pension | 5.8% |
| 2020/2021 | £10,000 / 49 = £204 added to her pension | 5.5% |
None of Mrs Jones' pre 1 April 2014 final salary pension is affected as we would always use the full time equivalent pay of £20,000 to work out this part of her pension.