MyCompanyPension.co.uk - Helping members of occupational pension schemes to better understand their benefits.

25th September 2017
:: Scheme Member | Important Aspects of My Pension | What is an accrual rate?

What is an accrual rate?
 
An accrual rate will usually be part of the formula used in a final salary scheme or a career average revalue earnings scheme (both are types of defined benefit scheme).
 
It is the rate at which you build up pension benefits whilst a member of your employer’s defined benefit scheme. It is most commonly expressed as a fraction, such as 1/30th, 1/60th, 1/80th, 1/120th etc. The lower the bottom number, the better the pension benefit you will receive for an equivalent amount of pensionable service
 
For a full explanation, including worked examples, read our Factsheet.
 
To find out more, choose one of our free Factsheets on the right to match your category of membership.
 
 
Not sure which category of member you are? See our definitions:
 
 
 
 
 
See our Glossary for definitions of phrases in our Factsheets
       
 
 
 
 
 
  Defined Benefit scheme members
 
What is an accrual rate? - for Active Members of Defined Benefit Schemes
What is an accrual rate? - for Preserved Members of Defined Benefit Schemes
What is an accrual rate? - for Pensioner Members of Defined Benefit Schemes
       
 
  Money Purchase scheme members
 
This Factsheet doesn't apply to Money Purchase members.
This Factsheet doesn't apply to Money Purchase members.
 
     

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