Financial Times Section

Southwold, Suffolk

Normal retirement age

Age 62.


During service

  • Contributions: you pay 6.25% of Pensionable Salary
  • Your pension is calculated in different ways depending on when you joined, as follows:
  • Joined before 1 August 1988:
    • 1.67% x pre 1.8.88 pensionable service x pensionable salary, plus;
    • 2.00% x post 1.8.88 pensionable service x pensionable salary
  • Joined after 31 July 1988:
    • 2.50% x pensionable service up to 15 years x pensionable salary, plus;
    • 1.70% x pensionable service years 16-32 x pensionable salary

On ill-health retirement

Ill-health retirement pensions are based on the pension you would have received if you had remained in service until your normal retirement date, but based on your final pensionable salary at the date of your retirement.


On death in service

The benefits are:

  • If you die whilst a contributing member of the Plan, your dependants will receive a cash sum of three times your basic annual salary at date of death
  • A spouse’s/civil partner’s pension of one-third of your pensionable salary
  • Your dependent children will be eligible for a pension of 16.67% of your pensionable salary for a sole child, otherwise 12.5% of your pensionable salary up to a maximum of four

On leaving

You have two options:

  1. Leave your pensions benefits with the Plan. You are known as a
    deferred member, or;
  2. Transfer the value of your deferred pension to another registered
    pension arrangement

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.

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
125%
212.5%
38.33%

If, in any case, you have more than three 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.
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 may be payable from age 60 to State Pension Age.


Pension increases

Once your pension comes into payment, the non-GMP element of your pension will be increased each 1st January as follows:

Pension relating to service prior to 6 April 19973%
Pension relating to service post 5 April 1997The lower of 5% and the rise in inflation (subject to a minimum of 3%).

The Plan will increase your GMP in line with the section increases above for women under age 60 and men under age 65.

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) for women over age 60 and men over age 65.


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.

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
130%
215%

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.


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