Graduated Retirement Benefit (GRB)
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The GRB was
the forerunner to SERPS. The scheme ran from April 1961
to April 1975 and produces a pension based upon the the amount of
'graduated NI contributions' you paid over this period.
The amount of your GRB depends upon the number of units you
collected over the period April 1961 to April 1975. The number of
units collected in turn depends upon your level of graduated NI
contributions. To calculate the number of units divide the
graduated NI contributions by 7.5 for a man and 9 for a woman (this will be
decreased to 7.5 for women retiring after 6 April 2010). However
the maximum number of units you can have collected is 72 for a woman
and 86 for a man. The amount of weekly pension you receive at
retirement is worked out by multiplying the number of units earned
by the unit price (this is calculated yearly by the government) at
retirement. An example should make this clearer.
Lets say a man retires in June 1995 having paid a total of
£375.00 between 1961 and 1975 in graduated NI contributions. This is
equal to 375 / 7.5 = 50 units. The unit price in June 1995 was
£7.64p. Therefore his weekly GRB is
Weekly GRB = 50 * 7.64p = £3.82 per week
Given the maximum number of units possible is 86 for a man the
maximum GRB benefit in June 1995 would have been 86 * 7.64p = £6.57
per week (i.e. £342 per year). Therefore the GRB is only likely to
make up a very small proportion of your total state pension income
and is small in relation to most peoples incomes.
If you would like to get an estimate of your GRB then you can
contact the DWP for a state pension forecast.
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