Evidence of Benefits -1949 Regulations

When the occupational pension fund was established on 23 December 1913, the pension formula was:

[1/60] times [Years of Service] times [Average Salary]

where [Average Salary] was the average of all the Years of Service.

The the original Member contribution rate was 2.5% of salary, with the sponsoring Employer making equivalent contributions.

However the averaging period was reduced to eliminate the first 10 years of service and so increase the value of [Average Salary].

This is confirmed by Regulation 10 in the Regulation Booklet dated 1949.

The Member contribution rate had also been increased to 3.75% of salary from 1 July 1948 to assist in funding the increased pension benefit {Regulation 5}.

The contribution from the sponsoring Employer had also been increased to 4.75% of the value of all salaries paid to members of the fund {Regulation 4}.

Fund Booklet 1949   Pension formula 1949