Penguin Section

Badger, Shropshire

Normal retirement age

Age 62. Age 60 for Sales Representatives.


During service

  • Contributions: member pays 5% of Pensionable Salary
  • Pension builds up based on pensionable salary and pensionable service, using the following formula:
    • 1.9% x final pensionable salary x pensionable service (limited to a max of 35 years)

On ill-health retirement

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


On death in service

The benefits are:

  • A cash sum of the greater of i. three times your basic annual salary at date of death and ii. the amount of your  contributions to the Plan plus interest
  • A spouse’s/civil partner’s pension of 50% of 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 death
  • Your dependent children will be eligible for a total pension (based on the spouse’s pension) as shown in the table below. If you have more than one dependent child, the pension will be shared equally between the children:

Total children’s pension as % of spouse’s pension

Number of
dependent
children
Spouse/civil
partner pension
payable
No spouse/civil
partner pension
payable
150%100%
260%120%
370%140%
4 or more80%160%

The benefits on death in service after normal retirement age may differ from the above.


On leaving

You have two options:

  1. Leave the pension you have built up to date of leaving within the Plan
    (a deferred pension), 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 currently in line with inflation up to a maximum of 5% each year and by a minimum of 3% p.a. in respect of service up to 5 April 2009 and by 3% p.a. in respect of service after that date. The GMP element increases at a fixed rate depending on your date of leaving.


On death as a deferred pensioner

If there is no surviving spouse, a lump sum equal to your contributions plus interest.

Your spouse/civil partner will receive a pension of 50% of your deferred pension revalued to date of death.


At retirement

You may exchange some pension for tax-free cash within statutory limits.

Early retirement is possible for active members from age 55 subject to Company consent. For deferred members, there is no need for Company consent an in certain circumstances, it may be possible for you to retire from age 50. Please ask for more information if this is of interest to you.

A reduction will be made to take account of the fact that you will be receiving your pension for longer.

A temporary supplementary pension is payable to male members if retirement is taken on or after age 60 for active members, and age 62 for deferred members, and is paid until State Pension Age. It also applies to female members in respect of their service after 16 May 1990. A temporary supplementary pension is not payable where the member retired early on grounds of ill-health.


Pension increases

Once your pension comes into payment, the non-GMP element of your pension relating to service before 6 April 1997 will be increased each 1st January by 3%. Pension relating to service after 5 April 1997 is increased by the lower of 5% and the rise in inflation, subject to a minimum of 3%.

The Plan will increase 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. If you have no spouse or dependent children, the lump sum will be the balance of five years’ pension payments including increases after the date of death. Otherwise, the lump sum will be the balance of five years’ pension payments ignoring any increases.

If you die after retirement your spouse/civil partner will receive a pension for life of two-thirds 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 total pension based on your spouse’s pension  at date of death as shown in the table below. If you have more than one dependent child, the pension will be shared equally between the children:

Total children’s pension as % of spouse’s pension

Number of
dependent
children
Spouse/civil
partner pension
payable
No spouse/civil
partner pension
payable
150%100%
260%120%
370%140%
4 or more80%160%

An underpin applies to ensure that the total amount of the benefits payable to your spouse/civil partner and dependent children will not be less that the total amount that you would have received had you died on the 5th anniversary of when your pension started. A further lump sum will be payable to make good any shortfall.


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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