Leaving the Scheme Early
Your membership of the Scheme will cease automatically if you leave the Group's employment. If you wish to leave the Scheme whilst you are still employed by the Group, you may do so, but you must give the Group Pensions team one complete month's notice of your decision, so that the necessary arrangements can be made. On leaving the Scheme, the benefits payable depend on the
Pensionable Service you have completed when you leave and you will cease to be eligible for life assurance.
What happens if I leave the Scheme?
If you leave the Scheme, you will be entitled to a deferred pension payable from your
Normal Pension Date. You cannot take a refund of your own contributions.
This deferred pension will then be increased between your date of leaving and your
Normal Pension Date as follows:
- The main part of your pension will increase for each complete year from the date of leaving to your Normal Pension Date in line with rates set out by the Government. These are currently based on the Consumer Prices Index, up to a maximum of 5% per annum compound (or up to a maximum of 2.5% per annum compound for pension earned after 1 April 2009)
- Your pension may also include a Guaranteed Minimum Pension as a result of contracted-out service up to 6 April 1997 (Click here for more details). This element will be increased in line with statutory regulations. The rate of increase is 3.5% per annum for leavers after 6 April 2017 for each complete tax year between date of leaving and your State pension age.
Details of your deferred pension will be communicated within two months of you leaving service.
Would I be entitled to transfer my benefits to another pension arrangement?
Yes, if you have a right to a deferred pension under the Scheme, you will have the right to request that its "cash equivalent" is transferred to your new employer's tax approved pension scheme, to an insurance company buy-out policy, or to a personal pension plan at any time up to one year prior to your
Normal Pension Date.
Transfer values are calculated on a basis which is set by the Scheme Actuary which complies with the provisions of the Pensions Schemes Act 1993 and guidance notes issued by the Institute of Actuaries. The Trustees have directed that the Scheme Actuary should not allow in the calculation for discretionary increases that might have been made to your deferred pension after the date of transfer.
You may write to the Group Pensions team to request a "guaranteed statement of entitlement". This will show your transfer value at a given date and you must make your decision to transfer within three months of that date. If you do not proceed with the transfer, you are able to request a further statement twelve months after your last request.
Please also note you may request an estimate of the transfer value that would be available to you on leaving whilst you are still a current member of the Scheme. These requests must be made in writing to the Group Pensions team, specifying your assumed date of leaving. Further estimates will not normally be provided within 12 months of your last request.
Can my deferred pension be paid early?
Yes, you can ask for your deferred pension to be paid early subject to the consent of the Group and the Trustees, however, under current legislation you must be age 55 to take early retirement. However the amount due will be reduced to reflect the fact that the pension is being paid before
Normal Pension Date.
