Normal retirement age
Age 62. Members who joined the Plan before 1 August 1988 may be entitled to a different normal retirement age.
Deferred pension increase
The non-Guaranteed Minimum Pension (GMP) element of the deferred pension increases currently in line with inflation up to a maximum of 5% each year and by a minimum of 3% each year in respect of service up to 5 April 2009 and by 3% each year in respect of service after that date. The GMP element increases at a fixed rate depending on your date of leaving.
On death as a deferred member
A lump sum of five times your deferred pension revalued to the date of death.
Your spouse/civil partner will receive a pension of two-thirds of your deferred pension revalued to date of death. There may be scope for a pension to be payable even if there is no spouse/civil partner.
Each of your dependent children (up to a maximum of five children) will be eligible for a pension based on 10% of your deferred pension revalued to date of death.
At retirement
You may exchange some pension for tax-free cash within statutory limits.
Early retirement is possible from age 55 with 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.
A temporary supplementary pension is payable until State Pension Age to male members whose pension commences on or after age 61. It also applies to female members in respect of their service after 16 May 1990. A temporary supplementary pension is not payable where the member retired early on grounds of ill-health.
Pension increases
Once your pension comes into payment, the non-Guaranteed Minimum Pension (GMP) element of your pension relating to service before 6 April 1997 will be increased each 1 January by the lower of 3% and the rise in inflation. Pension relating to service after 5 April 1997 is increased by the lower of 5% and the rise in inflation. If you left service before 1 August 1988, your entire non- GMP pension will increase by the lower of 5% and the rise in inflation.
Before you reach GMP age (60 for women and 65 for men), the Plan will increase any GMP in line with the section increases above.
After you reach GMP age, post 1988 GMP will increase by the lower of 3% per annum and the annual rise in inflation (currently measured using the Consumer Prices Index).
Death in retirement
If you are receiving a Plan pension and die within five years of retiring, your dependants will receive a cash sum. This will be the balance of five years’ pension payments (ignoring any future increases after the date of death).
If you die after retirement, your spouse/civil partner will receive a pension for life of two-thirds of your pension at the date of death, but calculated before any reduction if you took tax-free cash at retirement or chose an optional dependant’s pension. There may be scope for a pension to be payable even if there is no spouse/civil partner.
Each of your dependent children (up to a maximum of five children) will be eligible for a pension based on 10% of your pension at date of death, but calculated before any reduction if you took tax-free cash at retirement or chose an optional dependant’s pension.
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.
