You will have the option of either leaving your benefits in the Plan until retirement or transferring the value of your benefits to another registered pension arrangement.
If you are a member of either the MP03 Section or the AE Section and you decide to remain in the Plan, your pension pot will remain invested in the Plan until you retire. If you decide to transfer, we will pay the full value of your pension pot to your chosen pension arrangement.
- Defined benefit members
If you are a member of one of the Defined benefit (DB) sections, your pension at the date you leave the Plan would be calculated using this formula:
Pensionable pay x pensionable service x accrual rate
You will then have the option of either leaving your benefits in the Plan until retirement or, at any time in the future, transferring the value of your benefits to another registered pension arrangement. If your total pension value is more than £30,000 then by law, you now must provide evidence of financial advice being taken before you will be allowed to transfer.
For example:
Karen is a member of the Final Pay Section and leaves the Plan with 25 years service. Her final pensionable pay is £65,000.
Her pension at date of leaving is calculated as:
Pensionable pay: £65,000
a yearPensionable service: 25
yearsAccrual rate: 1/60th Pension calculated as
£65,000 x 25 years x 1/60th£27,083 In summary…
At the time Karen decides to leave the Plan, her pension has built up to £27,083 a year. - What benefits are payable if I die after leaving but before retirement?
If you leave your benefits in the Plan, death benefits will be calculated in accordance with the rules of your section of the Plan.
Remember to keep your Expression of wish form up to date and consider whether you need to complete a new form if your personal circumstances change.
- What happens to my Additional Voluntary Contributions (AVCs) if I leave?
If you elect to transfer the value of your Plan benefits to another pension arrangement, the value of your Additional Voluntary Contributions (AVCs) will also be transferred.
If you elect to leave your benefits in the Plan, your AVCs will also remain invested within the Plan. You will not be able to make further AVCs in to the Plan, but you will still be able to change your investment choices.
- What happens if I change address after leaving?
It is important that you notify the pensions team of any changes to your personal and contact details, so that we can keep in contact with you and ensure that we are sending important information to the right place.
