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Document I am subject to Tapered Protection, how is Uniform Accrual Formula calculated?

The Uniform Accrual Formula (UAF) calculation works by increasing the amount of benefit that would otherwise be payable by a proportion of the extra benefit that you would have earned had you remained as a Mental Health Officer (MHO) until retirement (including any doubled years). The proportion is equal to the ratio of your MHO membership to your total potential membership to age 55 (excluding any doubled years). The formula is as follows:

Final years’ pensionable pay     x     Actual MHO membership     x     Total potential membership to age 55
          80 (accrual rate)                  Potential membership to age 55

The calculation formula is the same as a member who has no Protection, but because you will remain in the 1995 Section beyond 1 April 2015, and therefore for longer, the proportion of the extra benefits you will earn will be bigger as shown in the following example:

Louise has Tapered Protection and when she moves to the 2015 Scheme in 2020 she will have been an MHO for 26 years.

If Louise had been able to remain in the 1995 Section and remained in MHO qualifying posts she would, by the time she reached age 55, have built up MHO membership of 29 years.

Louise would therefore qualify for nine doubled years making her total membership (at age 55) 38 years.

Providing Louise does not have a break of more than five years, her pay at retirement will be used to calculate her pension. Therefore assuming her pay is £35,000, the UAF calculation would be:

£35,000 / 80 x 26 / 29 x 38 = £14, 905

Without using the UAF calculation, Louise’s standard Preserved Rights benefit calculation would be:

£35,000 / 80 x 32 = £14,000

As you can see, the UAF calculation provides Louise with the highest pension and therefore she will automatically receive this as opposed to the lower pension without the UAF calculation.

Please note: Uniform Accrual is only tested at retirement, an estimate of this cannot be done.
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