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MyCompanyPension.co.uk - Helping members of occupational pension schemes to better understand their benefits.
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:: Scheme Member | Important Aspects of My Pension | What is an accrual rate?
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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.
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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:
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See our Glossary for definitions of phrases in our Factsheets
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This Factsheet doesn't apply to Money Purchase members.
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