Normal retirement age
Age 62.
Deferred pension increase
The non-Guaranteed Minimum Pension (GMP) element of the deferred pension increases by 5% each year. The GMP element increases at a fixed rate depending on your date of leaving.
On death as a deferred member
A refund of your contributions with interest.
Your spouse/civil partner will receive a pension of 50% of your deferred pension revalued to date of death. There may be scope for a pension to be payable even if there is no spouse/civil partner.
Where a spouse/civil partner pension is payable, your dependent children will be eligible for a pension of 8% based on your deferred pension revalued to date of death (up to a maximum of four children).
If there is no surviving spouse/civil partner, the entitlement where there are three or fewer dependent children will be:
| Number of dependent children | % of deferred pension payable to each child |
|---|---|
| 1 | 25% |
| 2 | 12.5% |
| 3 | 8.33% |
If, in any case, you have more than four dependent children, the Trustee decides how the pension will be shared between your children.
At retirement
You may exchange some pension for tax-free cash within statutory limits.
Early retirement possible from age 55 subject to Company consent. Please note that the government intends to increase the minimum retirement age from 55 to 57 from the 6 April 2028.
A reduction will be made to take account of the fact that you will be receiving your pension for longer.
If you do not put your pension into payment at age 62, it will be increased each year on the advice of the Plan Actuary.
A temporary supplementary pension is payable to State Pension Age for those members who leave service and receive an immediate pension on or after age 60, and those whose deferred pension starts on or after age 60.
Pension increases
Once your pension comes into payment, the non-GMP element of your pension will be increased each 1 January as follows:
| Pension relating to service prior to 6 April 1997 | 3% |
|---|---|
| Pension relating to service post 5 April 1997 | The lower of 5% and the rise in inflation (subject to a minimum of 3%) |
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 spouse/civil partner will receive a pension for life of 60% 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. There may be scope for a pension to be payable even if there is no spouse/civil partner.
Your dependent children will be eligible for a pension of 12.5% 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 (up to a maximum of four children). If there is no surviving spouse/civil partner, the entitlement where there are two or fewer dependent children will be:
| Number of dependent children | % of pension at date of death payable to each child |
|---|---|
| 1 | 30% |
| 2 | 15% |
If, in any case, you have more than four children, the Trustee decides how the pension will be shared between your children.
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.
