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What if you work part time?

As a DC Core or DC Start member, if you work part time, your account builds up in exactly the same way as if you work full time. Both your and Nestlé's contributions are based on a percentage of your pensionable earnings and the amount of pension you receive depends on how much you contribute (including Nestlé's contributions), how your investments perform and the cost of providing benefits at retirement.

For a reminder of how benefits build up in DC Start and DC Core, see Overview of sections.

As a DB Core or DB CorePlus member, if you work part time, your benefits will be calculated in the same way as if you were a full-time employee.

For a reminder of how your pension is calculated in DB Core and DB CorePlus, see What will you receive?

Example

John retired on 31 July 2020 after being a member of DB Core for three years. In his last year before retirement, John worked 15 hours a week so his salary reduced to £13,000. So, in the three years before retirement, John’s pensionable earnings were £25,000 in year 1, £26,000 in year 2 and £13,000 in year 3.

His career average revalued pensionable earnings are calculated as follows:

Year 1

Pensionable earnings revalued for 2 years:

£25,000
+
2.5%
+
2.5%
=
£26,265.63

Year 2

Pensionable earnings revalued for 1 year:

£26,000
+
2.5%
=
£26,650

Year 3

Pensionable earnings (not revalued in the last year):

£13,000

 

£26,265.63
+
£26,650
+
£13,000
3 years
=
Career Average Revalued Pensionable Earnings of £21,971.88

John's career average revalued pensionable earnings are then used in the formula to calculate his pension as follows:

1/80
x
£21,971.88
x
3

For a reminder of how your pension is calculated in DB Core and DB CorePlus, see What will you receive?