Normal retirement age
Age 60.
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. The GMP element increases at a fixed rate depending on your date of leaving.
On death as a deferred member
A lump sum amounting to the lower of: i. what would have been the death-in-service benefit payable if you had died on the day before leaving active membership and ii. the transfer value of your benefit on the day you left active membership (less the cost of providing the spouse’s pension).
Your spouse/civil partner will receive a pension of two-thirds of your deferred pension revalued to date of death. If your spouse/civil partner is more than 10 years younger than you, there is a reduction of 2.5% for every year above 10. There may be scope for a pension to be payable even if there is no spouse/civil partner.
If you die after normal retirement age you will be entitled to death in retirement benefits as if you had retired on the date of your death.
At retirement
You may exchange some pension for tax-free cash within statutory limits.
Early retirement possible from age 55 subject to Company consent. However, 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 60, it will be increased each year on the advice of the Plan Actuary.
A temporary supplementary pension is paid to male members from the later of age 60 and retirement to State Pension Age. It also applies to female members in respect of their service after 16 May 1990.
Pension increases
Once your pension comes into payment, the non-GMP element of your pension will be increased each 1 January by the greater of: (1) annual rise in inflation (currently measured using the Retail Prices Index), or (2) any Plan discretionary increase. Both (1) and (2) have a minimum increase of 4% p.a.
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).
Temporary supplementary pensions will be increased each 1 October in line with the annual increase in the Basic State Pension.
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 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. There may be scope for a pension to be payable even if there is no spouse/civil partner.
If your spouse/civil partner is more than 10 years younger than you, there is a reduction of 2.5% for every year above 10.
Your dependent children will be eligible for pensions based on a percentage 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. The percentage for each dependent child, and maximum number of pensions to be paid, differs depending on whether a spouse/civil partner pension is payable, and are as below:
Total children’s pension as % of member’s pension
| Number of dependent children | Spouse/civil partner pension payable | No spouse/civil partner pension payable |
|---|---|---|
| 1 | 16.7% | 33.3% |
| 2 | 33.3% | 66.6% |
| 3 | – | 100% |
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.
