The deferred pension will initially be calculated in accordance with Basis 1, by reference to your Pensionable Service and your Final Pensionable Earnings at the date of leaving.

Your Basis 1 deferred pension will be increased at a rate equal to the percentage rise in the cost of living subject to a maximum of 5% a year compound over the period of deferment.

At your Normal Retirement Date, the amount will be compared with the pensions calculated under Basis 2 and Basis 3, and the pension payable will be the highest figure produced by this
comparison.

The contributions (limited to 3%) you have made to the 2000 Plan will continue to accumulate Credited Interest for the purposes of the Basis 3 calculation until your pension begins or you transfer your benefits from the 2000 Plan.

You will have the option to exchange part of your pension for a tax free cash sum when you reach retirement.