HOW YOUR BENEFITS ARE CALCULATED
Different benefits apply to deferred NGEG members who were former Gas Scheme members. Please click here for more information.
Your deferred benefits are calculated using your pensionable service and pensionable salary at the time you leave.
For example:
If you have worked for 10 years and your pensionable salary is £22,000, your deferred pension and lump sum would be calculated as:
Pension: 1/80 x 10 years x £22,000 = £2,750 per year
Lump sum: £2,750 x 3 = £8,250
During the period between leaving and drawing your deferred benefits, your benefits will be increased on 1 April each year in the same way as the increases granted to pensioners.
These increases are in line with inflation as measured by the increase in the Retail Prices Index (RPI) over the 12 months to the previous September, up to a maximum of 5%. If the increase in RPI is greater than 5%, any increase in excess of 5% is payable solely at the discretion of National Grid.
Most members are entitled to take their deferred pension from age 55 (although this may be earlier for certain members who have been made redundant). However, if you take your benefits before your normal pension age, they will be reduced for early payment.