Leaving service
Section A and Section B deferred members
If you leave service or opt out of the Scheme before Normal Retirement Date, your benefits and their amount will depend on the length of your Qualifying Service and whether you have transferred benefits into the Scheme from another pension.
If you have completed at least two years Qualifying Service or have transferred in benefits from a personal pension scheme or retirement annuity contract, you will be entitled to a preserved pension and cash sum payable from your Normal Retirement Date (with the additional cash sum option). You will also be entitled to a pension for your Partner and dependant children on your death and a lump sum on your death before retirement.
The pension and cash sum preserved for you are worked out in a similar way to your normal retirement pension and cash sum but based on your Pensionable Service up to the date you leave or opt out and your Final Pensionable Pay at that date. If you have paid voluntary contributions for additional benefits, these benefits will also be preserved in the Scheme.
Your preserved pension and cash sum (but not any voluntary or transferred pension) will increase for the number of complete years between the date you leave or opt out and your Normal Retirement Date or earlier date of death. The increases will be in line with increases in the Consumer Prices Index over that period.
You can decide to take your preserved pension and cash sum on or after your 55th birthday (under current legislation), or earlier if you have been notified that you have a protected pension age. If you take your preserved pension and cash sum before your 60th birthday, they will be reduced by a factor because they are being paid before age 60 and, in the case of pension, will be paid for longer.
Alternatively, it may be possible to transfer the value of your preserved benefits to another scheme or arrangement.
If you have completed at least three months’ but less than two years’ Qualifying Service and have not transferred in benefits from a personal pension scheme or retirement annuity contract, you may choose a preserved pension and cash sum or to transfer the value of your benefits to another scheme or arrangement or choose to receive a refund of the contributions you have paid to the Scheme. Your refund will be reduced by:
- the cost of buying you back into S2P for the time you were contracted out, and
- tax payable, currently 20% on the first £20,000 and 50% on any excess.
If you have completed less than three months Qualifying Service and have not transferred in benefits from a personal pension scheme or retirement annuity contract, you will normally have the option to receive a refund of the contributions you have paid to the Scheme.
What happens if I die after leaving the Scheme?
Section A members
You will stop being covered for the lump sum death benefit on the day you leave or opt out.
If you die before your Normal Retirement Date and before taking your preserved benefits your death benefits will be:
- a lump sum of three times the pension preserved for you, plus
- a Partner’s pension of 50% of the pension preserved for you, plus
- if a Partner’s pension is payable, a pension for your dependant children of 25% of your Notional Pension if you have one dependant child or 50% of your Notional Pension if you have more than one dependant child (shared equally between all eligible children), or
- if a Partner’s pension is not payable, a pension for your dependant children of one-third of your Notional Pension if you have one dependant child or two-thirds of your Notional Pension if you have more than one dependant child (shared equally between all eligible children).
If you die after your Normal Retirement Date, your death benefits will be:
- a Partner’s pension of 50% of your pension at the date of your death, ignoring any exchange of pension for a tax-free cash sum and, if you retired voluntarily before Normal Retirement Date, ignoring any early retirement reduction factor which was applied to your pension, plus;
- if a Partner’s pension is payable, a pension for your dependant children of 25% of your Notional Pension if you have one dependant child or 50% of your Notional Pension if you have more than one dependant child (shared equally between all eligible children), or
- if a Partner’s pension is not payable, a pension for your dependant children of one-third of your Notional Pension if you have one dependant child or two-thirds of your Notional Pension if you have more than one dependant child (shared equally between all eligible children), plus
- if you have not yet received five years payment of pension, a lump sum equal to the last instalment of your pension times the number of instalments left in the rest of the five-year period.
Any dependant’s pensions will be subject to the provision outlined in the relevant members booklet.
Section B members
You will stop being covered for the lump sum death benefit on the day you leave or opt out.
If you die before your Normal Retirement Date and before taking your preserved benefits your death benefits will be:
- a lump sum of 2.25 times the pension preserved for you, plus
- a Partner’s pension of 37.5% of the pension preserved for you, plus
- if a Partner’s pension is payable, a pension for your dependant children of 25% of your Notional Pension if you have one dependant child or 50% of your Notional Pension if you have more than one dependant child (shared equally between all eligible children), or
- if a Partner’s pension is not payable, a pension for your dependant children of one-third of your Notional Pension if you have one dependant child or two-thirds of your Notional Pension if you have more than one dependant child (shared equally between all eligible children).
If you die after your Normal Retirement Date, your death benefits will be:
- a Partner’s pension of 37.5% of your pension at the date of your death, ignoring any exchange of pension for a tax-free cash sum and, if you retired voluntarily before Normal Retirement Date, ignoring any early retirement reduction factor which was applied to your pension, plus;
- if a Partner’s pension is payable, a pension for your dependant children of 18.75% of your Notional Pension if you have one dependant child or 37.5% of your Notional Pension if you have more than one dependant child (shared equally between all eligible children), or
- if a Partner’s pension is not payable, a pension for your dependant children of 25% of your Notional Pension if you have one dependant child or 50% of your Notional Pension if you have more than one dependant child (shared equally between all eligible children), plus
- if you have not yet received five years payment of pension, a lump sum equal to the last instalment of your pension times the number of instalments left in the rest of the five-year period.
Any dependant’s pensions will be subject to the provision outlined in relevant members booklet.