Retirement
What is my pension entitlement on retirement at Normal Retirement Date?
Section A members
On retirement at your Normal Retirement Date, you will be entitled to a pension of:
One 80th x Final Pensionable Pay x complete years of Pensionable Service
If you have additional days of Pensionable Service, your pension will be increased by a proportionate amount.
You will also be entitled to a cash sum of three times your annual pension at your Normal Retirement Date.
Any pension and/or cash sum secured by a transfer value from a previous scheme or arrangement will be payable as well.
Section B members
On retirement at your Normal Retirement Date, you will be entitled to a pension of:
One 60th x Final Pensionable Pay x complete years of Pensionable Service
If you have additional days of Pensionable Service, your pension will be increased by a proportionate amount.
Any pension secured by a transfer value from a previous scheme or arrangement will be payable as well.
Can I exchange any pension for a cash sum?
Section A members
When you retire at Normal Retirement Date, you may be able to exchange part of your pension for an additional cash sum. Your options will be set out in your retirement quotation.
The maximum tax-free cash lump sum allowable will normally be calculated as 25% of the value of your benefits at the date you retire, subject to an overall cap.
Your cash sum will not normally be subject to tax.
Exchanging pension for additional cash will not reduce the Partner’s pension payable on death after retirement.
Section B members
When you retire at Normal Retirement Date, you may be able to exchange part of your pension for a cash sum. Your options will be set out in your retirement quotation.
The maximum tax-free cash lump sum allowable will normally be calculated as 25% of the value of your benefits at the date you retire, subject to an overall cap.
Your cash sum will not normally be subject to tax.
Exchanging pension for cash will not reduce the Partner’s pension payable on death after retirement.
Can I retire early?
Both Section A and Section B members who have completed at least two years Qualifying Service, may retire at any time after their 55th birthday (under current legislation) and receive an immediate pension and cash sum. If you have less than two years Qualifying Service, you may retire early if the employer and the trustees agree.
Your pension and cash sum are calculated as outlined the relevant member booklet and vary from section to section but are based on your Pensionable Service and your Final Pensionable Pay at the date of retirement.
Your pension and cash sum will then be reduced by a factor because they are being paid early and, in the case of the pension, will be paid for longer. You may also be able to exchange part of your pension for an additional cash sum.
In certain circumstances, the trustees may allow you to retire at any age on the grounds of ill-health if serious ill-health or incapacity means you can no longer carry out your job with the employer.
Can I retire after Normal Retirement Date?
If members in both sections of the scheme continue working beyond their Normal Retirement Date, they can choose whether or not to continue paying contributions to the Scheme.
(a) If you continue paying contributions, your benefits will be calculated using Pensionable Service up to the date you stop paying contributions and your Final Pensionable Pay then.
(b) If you do not continue paying contributions, your benefits will be calculated using your Pensionable Service up to your Normal Retirement Date and your Final Pensionable Pay then. You will be able to choose to take your benefits immediately or to postpone them.
If you postpone taking your benefits at Normal Retirement Date or at a later date and you stop paying contributions, they will be increased to take account of late payment.
You must take your pension by age 75. You may be able to exchange part of your pension for an additional cash sum when you take your pension.
Do I need to stop working before taking benefits?
If your employer agrees, you do not need to stop working to take your benefits from the Scheme. However, you will no longer be treated as an active member of the Scheme and your Pensionable Service will be deemed to have ceased on the date you take your benefits.