You will have the option of either leaving your benefits in the Plan until retirement or transferring the value of your benefits to another registered pension arrangement.
If you are a member of either the MP03 Section or the AE Section and you decide to remain in the Plan, your pension pot will remain invested in the Plan until you retire. If you decide to transfer, we will pay the full value of your pension pot to your chosen pension arrangement.
- Defined benefit members
If you are a member of one of the Defined benefit (DB) sections, your pension at the date you leave the Plan would be calculated using this formula:
Pensionable pay x pensionable service x accrual rate
You will then have the option of either leaving your benefits in the Plan until retirement or, at any time in the future, transferring the value of your benefits to another registered pension arrangement. If your total pension value is more than £30,000 then by law, you now must provide evidence of financial advice being taken before you will be allowed to transfer.
For example:
Karen is a member of the Final Pay Section and leaves the Plan with 25 years service. Her final pensionable pay is £65,000.
Pensionable pay: £65,000
a yearPensionable service: 25
yearsAccrual rate: 1/60th Pension calculated as
£65,000 x 25 years x 1/60th£27,083 Her pension at date of leaving is calculated as: In summary…
At the time Karen decides to leave the Plan, her pension has built up to £27,083 a year. - What benefits are payable if I die after leaving but before retirement?
If you leave your benefits in the Plan, death benefits will be calculated in accordance with the rules of your section of the Plan.
Remember to keep your Expression of wish form up to date and consider whether you need to complete a new form if your personal circumstances change.
- What happens to my Additional Voluntary Contributions (AVCs) if I leave?
If you elect to transfer the value of your Plan benefits to another pension arrangement, the value of your Additional Voluntary Contributions (AVCs) will also be transferred.
If you elect to leave your benefits in the Plan, your AVCs will also remain invested within the Plan. You will not be able to make further AVCs in to the Plan, but you will still be able to change your investment choices.
- What happens if I change address after leaving?
It is important that you notify the pensions team of any changes to your personal and contact details, so that we can keep in contact with you and ensure that we are sending important information to the right place.
- Can I transfer my benefits out of the Plan?
Once you have stopped contributing to the Plan you can transfer your benefits to another approved pension arrangement, this could be to your new employer’s pension, for example, or to a personal pension.
Section 48 of the Pension Schemes Act 2015 requires you to provide evidence that you have taken financial advice if your Defined Benefit (DB) transfer value is over £30,000 and you are not transferring to another DB arrangement. Visit the Money Helper website - This link opens in a new browser window to find an independent adviser in your area.
Please note: If you joined the Money Purchase 2003 Section prior to 6 April 2016 and you decide to transfer your pension pot out of the Plan the transfer must be treated as if it were a Defined Benefit (DB) to Defined Contribution (DC) transfer. The means that any transfer value in excess of £30,000 will require regulated financial advice and there will be a cost to you to obtain this transfer advice. If you are thinking of moving your pension, please read our Safeguarded benefits (PDF 170KB) leaflet.
When you apply to transfer your benefits from the Plan, the Trustee is required, by law, to refer you to the Pension Wise service for guidance. You can opt out of receiving this guidance, but you will need to tell the Trustee about your decision. You can read more about these additional checks and complete the Guidance confirmation form.
The Trustee also has to perform additional checks when you apply to transfer your benefits to another arrangement, read more about Trustee checks for transfers.It’s important to know how to identify a scam, you can read more on our “Pension Scams” page.
