Normal retirement age
- Contributions: member pays 2% of Pensionable Salary
- Pension builds up based on pensionable salary and pensionable service, using the following formula:
- 1/60th x final pensionable salary x pensionable service
- Normal retirement date is 62nd birthday for men and women
On ill-health retirement
Ill-health pension at any age. In this case, you will be able to retire and take your benefits immediately, even if you are under 55.
There are two levels (tiers) of pension depending on the severity of your illness and the effect of this on your ability to work.
The criteria for lower tier ill-health retirement is that you must be prevented by ill health from doing your own or a comparable job but are likely to be able to work in some employment in the future.
To get upper tier ill-health retirement pension you must meet the same criteria as for the lower tier except that you must also be unlikely to work in any capacity in the future.
Upper tier ill-health retirement pension will be calculated in the same way as pension at your normal retirement date, but using your final pensionable salary as at date of leaving, and your pensionable service at the date of leaving service increased by the prospective pensionable service to age 60.
Lower tier ill-health pension will usually be calculated in the same way as pension at your normal retirement date, using your final pensionable salary and your pensionable service at the date of leaving service. But if you have less than 10 years’ pensionable service at the date of leaving, we will credit you with extra pensionable service so that your total pensionable service in the Plan is 10 years. This is provided the extra service is not more than the extra service you would have earned if you had worked through to age 60.
On death in service
The benefits are:
- A lump sum of four times your pensionable pay
- A partner’s pension equivalent to 50% of your pension based on final pensionable salary and prospective pensionable service to age 62
- Children’s pensions of 18.75% of the pension you had built up to date of death for each dependent child (2 maximum)
The benefits set out above relate to anyone who dies in service before Normal Retirement Age, or after Normal Retirement Age where the member has continued to pay contributions. Members who are in service after Normal Retirement Age but who are no longer paying contributions should consult the “Death in retirement” section of this page which lists the benefits payable if they die in service.
You have the following options:
- Leave your pensions benefits with the Plan. You are known as a deferred member, or;
- Transfer the value of your deferred pension to another registered pension arrangement
Deferred pension increase
Deferred benefits increase each year by the following:
- Any Guaranteed Minimum Pension (GMP) benefits are increased at a fixed rate depending on your date of leaving
- The remaining benefits are increased in line with inflation, up to a maximum of:
- 5% in respect of service up to 5 April 2009, and;
- 2.5% in respect of service after that date
On death as a deferred member
If you die while you are entitled to a deferred pension, the following benefits are payable:
- Partner’s pension of 50% of your deferred pension, revalued to the date of your death
- Children’s pensions of 18.75% of your deferred pension, revalued to the date of your death for each dependent child (2 maximum)
You may exchange some pension for tax-free cash within statutory limits. Early retirement possible from age 55. If you are under age 60, a reduction will be made to take account of the fact that you will be receiving your pension for longer.
Once your pension comes into payment, the non-GMP element of your pension will be increased on each 1 January by the lower of 5% and the rise in inflation each year.
Before you reach GMP age (60 for women and 65 for men), the Plan will increase any GMP in line with the section increases above.
After you reach GMP age, post 1988 GMP will increase by the lower of 3% per annum and the annual rise in inflation (currently measured using the Consumer Prices Index).
Death in retirement
If you are receiving a Plan pension and die within five years of retiring, your dependants will receive a cash sum. This will be the balance of five years’ pension payments (ignoring any future increases after the date of death).
If you die after retirement, your partner will receive a pension for life of 50% of your pension, at the date of death, but calculated before any reduction if you took tax-free cash at retirement or chose an optional dependant’s pension.
Children’s pensions are payable of 18.75% of your pension for each dependent child (2 maximum).
Please note the Rules of the Plan are the binding documents of the Plan and will always override the information provided in this website. For deferred members the Plan Rules at the date of leaving are relevant.