Normal retirement age
- Ordinary and Senior Staff member – age 62
- Longman, Longman Special and Pitman member – age 65 (unless the member has previously notified the Trustee in writing that it shall be age 62)
- Sales Representative member – age 60
Deferred pension increase
The non-Guaranteed Minimum Pension (GMP) element of the deferred pension increases in line with inflation up to a maximum of 5% each year in respect of service up to 5 April 2009 and up to 2.5% p.a. in respect of service after that date. The GMP element increases at a fixed rate depending on your date of leaving.
At retirement
- You may exchange some pension for tax-free cash within statutory limits
- Early retirement possible from age 55 subject to company consent. However, the government intends to increase the minimum retirement age from 55 to 57 from the 6 April 2028
- A reduction will be made to take account of the fact that you will be receiving your pension for longer
- If you do not put your pension into payment at normal retirement age, it will be increased each year on the advice of the Plan Actuary
Pension increases
Once your pension comes into payment, it will be increased every 1 January as follows:
| Pension relating to service prior to 6 April 1997 | 3% |
|---|---|
| Pension relating to service post 5 April 1997 | The lower of 5% and the rise in inflation (subject to a minimum of 3%) |
Death benefits
| Category of membership | On death in deferment before Normal Retirement Date | On death after Normal Retirement Date and before receipt of pension | On death in retirement for a member who retired or left service after 1 August 1988 |
|---|---|---|---|
| Ordinary Member | If no Spouse/Civil Partner/dependant’s pension payable: member’s contributions plus interest. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | Five times the member’s annual pension as if the member had retired at date of death. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | The balance of five years’ pension payments (ignoring any future increases after the date of death). Spouse/Civil Partner pension of 50% of member’s pension at the date of death, but calculated before any reduction for tax-free cash at retirement or an optional dependant’s pension. |
| Senior Staff Member | If no Spouse/Civil Partner/dependant’s pension payable: member’s contributions plus interest. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | Five times the member’s annual pension as if the member had retired at date of death. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | The balance of five years’ pension payments (ignoring any future increases after the date of death). Spouse/Civil Partner pension of 50% of member’s pension at the date of death, but calculated before any reduction for tax-free cash at retirement or an optional dependant’s pension. |
| Sales Representative Member | If no Spouse/Civil Partner/dependant’s pension payable: member’s contributions plus interest. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | Five times the member’s annual pension as if the member had retired at date of death. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | The balance of five years’ pension payments (ignoring any future increases after the date of death). Spouse/Civil Partner pension of 50% of member’s pension at the date of death, but calculated before any reduction for tax-free cash at retirement or an optional dependant’s pension. |
| Longman Member | If no Spouse/Civil Partner/dependant’s pension payable: member’s contributions plus interest. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | Five times the member’s annual pension as if the member had retired at date of death. Spouse/Civil Partner pension of 50% of member’s deferred pension revalued to date of death. | The balance of five years’ pension payments (ignoring any future increases after the date of death). Spouse/Civil Partner pension of 50% of member’s pension at the date of death, but calculated before any reduction for tax-free cash at retirement or an optional dependant’s pension. |
| Pitman Member | If no Spouse/Civil Partner/dependant’s payable: member contributions without interest. Spouse/Civil Partner pension will be the Contracted-out benefits. | Five times the member’s annual pension as if the member had retired at date of death. Spouse/Civil Partner pension of 50% of the deferred pension had member retired on the day before death. | The balance of five years’ pension payments (ignoring any future increases after the date of death). Spouse/Civil Partner pension of 50% of member’s pension at the date of death, but calculated before any reduction for tax-free cash at retirement or an optional dependant’s pension. |
| Longman Special Member | Spouse/Civil Partner pension will be the Contracted-out benefits. | Spouse/Civil Partner pension will be the Contracted-out benefits. | The balance of five years’ pension payments (ignoring any future increases after the date of death). Spouse/Civil Partner pension of 1/60th of final pensionable salary for each year of pensionable service after 6 April 1978. Contracted out benefits. |
There may be scope for a pension to be payable even if there is no spouse/civil partner.
Your dependent children will be eligible for the following total pensions (based on your spouse’s/civil partner’s pension) as shown in the table below. The Trustee decides how the amounts are shared.
Total children’s pension as % of spouse’s pension
| Number of dependent children | Spouse/civil partner pension payable | No spouse/civil partner pension payable |
|---|---|---|
| 1 | 50% | 100% |
| 2 | 60% | 120% |
| 3 | 70% | 140% |
| 4 or more | 80% | 160% |
Please note that if you are a Pitman Member and die after Normal Retirement Date, if no spouse/civil partner’s pension is payable, your dependent children will be eligible for the amount of pension that would have been payable to a surviving spouse/civil partner, in such shares as the Trustee decides.
Please note the Rules of the Plan are the binding documents of the Plan and will always override the information provided in this website. For deferred members the Plan Rules at the date of leaving are relevant.
