Other Important Aspects of the Scheme
Important aspects of the Scheme
Important aspects of the Scheme
What is the Scheme's tax status?
The Scheme has been approved by the Inland Revenue as an exempt approved scheme under the Income and Corporation Taxes Act 1988. As a result, it qualifies for substantial tax advantages on its contributions and investments.
However, as a condition of approval, the Inland Revenue imposes restrictions on the benefits you and your dependants may receive. Therefore, there may be occasions when your benefits will have to be restricted in order to comply with these Inland Revenue restrictions.
What if I am absent from work?
Your membership of the Scheme will continue provided that:
- you are receiving sick pay, or you are a potential claimant under the separate Long Term Disability Benefit Plan. Once you are in receipt of Long Term Disability Benefit, separate arrangements would apply which would be advised to you at that time.
- you are on maternity absence. Contributions will be based on maternity pay only during this period and membership will continue until your latest date of return stated by Human Resources.
- you have been advised by the Group that your period of absence will count towards your pension and you comply with any conditions imposed. Please note you will not generally be eligible for death in service benefits during this form of absence.
You will be notified in writing if your membership of the Scheme is being discontinued for any reason.
What if my working hours change?
If your contractual working hours change a special formula will apply to the calculation of your benefits so that each period of service counts towards your pension on a pro rata basis. For example, if you worked for six years on a half time (17.5 hours per week) contract of employment and then transferred to a full time (35 hours per week) contract, your previous
Pensionable Service would be worth three years based on the new full time
Pensionable Salary. Further information is available from the Group Pensions team.
Will I have a second opportunity to join the Scheme?
If you decide not to join the Scheme, or have joined the Scheme but later opted out, you will not have a second opportunity to join.
Can I use my benefits to obtain a loan?
You cannot use your benefits for this purpose nor assign them to another person. Your benefits would be forfeited if you attempted to use them in this way.
Can I transfer other pension benefits into the Scheme?
No, the Scheme does not offer this facility.
What if my personal circumstances change?
If your personal circumstances change it is advisable to review your Wishes Letter - for example if your marital status changes or you become financially responsible for any children. This will ensure that the Trustees of the Pension Scheme are fully aware of your circumstances and preferences if they are required to exercise their discretion in relation to lump sum death benefits following your death.
