Benefits

If you’re not taking benefits yet

Contents


How much will you get

This section explains how your benefits are calculated and increase over time.

Calculating your benefits

Your MNRPF pension is based on 3 factors: how long you’ve worked for a participating employer, your salary and how your benefits build up over time (the accrual rate).

You build up an amount worth:

  • 1/60th of your salary for each year between 6 April 1978 and 31 January 1998
  • 1/80th of your salary for each year between 1 February 1998 and 31 May 2001

If you worked in the seafaring industry before 6 April 1978 and joined MNRPF before 6 April 1979, you’ll also get what are called ‘pre-1978 credits’. This is £66.25 for each year you worked in the industry before 6 April 1978 (less if you did not work the full year). If you were still a contributing member of MNRPF on:

  • 1 April 1985, you can get up to 5 credits
  • 1 April 1987, you can get up to 8 credits

If you were contracted out of the Additional State Pension before 5 April 1997, you might also get an extra amount to make sure your pension meets the Guaranteed Minimum Pension (GMP) we need to provide. Check if you were contracted out of the Additional State Pension.

How benefits increase over time

If you carry on working for a participating employer

Your MNRPF benefits increase in line with:

  • rising prices (inflation) up to 7% if your employer contributes to the Fund
  • average weekly earnings of people across Great Britain if they do not

If you leave a participating employer

  • Your main benefits increase in line with the Consumer Price Index, up to 5% each year
  • Any Guaranteed Minimum Pension (GMP) amount increases by a fixed percentage each year based on the date you left the fund
  • Any pre-1978 credits increase in line with the Consumer Price Index, up to 5% a year

If you leave a participating employer while you’re a member of another workplace pension scheme, these increases may affect your benefits in the other scheme. If you’re not sure, you should contact the other scheme.