Payment of Benefits
When will my pension be paid?
Your pension, and any spouse's or children's pensions, will be paid by instalments as the Trustees decide. Currently they are paid monthly in advance starting from the 1st of the month immediately following retirement. Pensions are paid directly to a nominated UK bank account.
After your first instalment you will only receive a payslip thereafter in April and November unless your net monthly pension increases or decreases by £5.00.
You should note that all pension payments from the Scheme are treated as taxable income, and are subject to the deduction of tax at source. You should also note that pensions from the State Pension System are also taxable. However, State pensions are not taxed at source and it is possible that any tax due in respect of this element of your retirement income will have to be deducted from your Scheme pension.
Will my pension increase after I retire?
Pensions are guaranteed to increase annually. Different parts of your pension may increase at different rates, depending on when the pension was earned. The rates also depend on whether you are a
Pre’95 Member or a
Post’95 Member . The rates of increase are set out in the table below:
|
Period |
Increase Rate |
|
Pension earned before 6 April 1997 |
3% per annum |
|
Pension earned between 6 April 1997 and 31 December 2005 |
Retail Price Inflation up to a maximum of 5% per annum, with a minimum of 3% per annum |
|
Pension earned after 31 December 2005 |
The minimum increase stipulated by the Government. Currently this is Consumer Price Inflation up to a maximum of 2.5% per annum |
|
Period |
Increase Rate |
Pension earned before 6 April 1997
|
Retail Price Inflation up to a maximum of 3% per annum |
|
Pension earned between 6 April 1997 and 31 December 2005 |
Retail Price Inflation up to a maximum of 5% per annum |
|
Pension earned after 31 December 2005 |
The minimum increase stipulated by the Government. Currently this is Consumer Price Inflation up to a maximum of 2.5% per annum |
Currently the review date is 1 December each year with a proportionate increase being granted to those who have been retired for less than 12 months.
These rates apply to any spouse's and children's pensions that become payable, as well as your own pension.
You should also note that the Group has discretion to award increases to pensions-in-payment in excess of these rates. There have been no discretionary increases over the last five years.
Can I choose who should receive the lump sums payable if I die?
Although your
Wishes will be taken into account, the Trustees have complete discretion in choosing the recipients of the lump sum death benefits under the Scheme. This should ensure that the payments are not subject to UK inheritance tax.
You may nominate the recipients to whom you would like the lump sum death benefits paid by completing a Wishes Letter. This form will have been given to you when you first joined the Group and further copies can be obtained by clicking
here should you wish to change your nomination at any time. Your Wishes should be updated whenever your personal circumstances change.
