91热爆

What is the New Benefits section?

New Benefits is closed to new members. It is a defined benefit pension arrangement under which benefits build up at the rate of 1/60th of your final pensionable salary for each year of pensionable service.

The New Benefits section has been closed to new joiners since 31 October 2006

Do I have to be a member?

No.

Opting out

You can end your membership without leaving service, subject to at least two months' notice. To do so you will need to complete an opt-out form, which you can get by calling the pension service line.

Once you have opted out, you cease to build up benefits and become a life assurance member.  You should read the note '91热爆 Pension Scheme death in service provisions' for more information. The note is available from the pension service line.

Pension provision is an important element of your reward package. By opting out you will be giving up a valuable benefit. Before making such a decision, you should consider taking independent financial advice

Rejoining the scheme

Having opted out, you will not be permitted to rejoin the scheme as a New Benefits member.

You will be able to opt out and join LifePlan - the 91热爆's defined contribution plan at any time in the future visit .

How much does it cost?

Benefits are paid for partly by you and partly by the 91热爆.

Your share of the cost

Currently you pay 7.5% of your pensionable salary. This can be varied if both the 91热爆 and Trustees agree, although it cannot go above 7.5% without a change to the Scheme rules.

As a New Benefits member your contributions will normally be met through salary sacrifice. This is called 'Smart Pensions'. Your basic salary is reduced, currently by 7.5%, and the 91热爆 pays this amount to the Scheme. Because your basic salary is lower, you will usually pay lower National Insurance contributions.

The income tax you pay is unaffected by Smart Pensions. This is because PAYE income tax is always applied to earnings after any pension contributions have been deducted.

For some members (e.g. those on low pay or receiving State benefits) Smart Pensions may be disadvantageous. If you are one of them, you will be excluded automatically and alternative arrangements will be made to collect your contributions. If you want to know more about Smart Pensions, there is a leaflet you can get by contacting the pension service line.

Employer contributions

In addition to whatever contributions they pay under Smart Pensions, the 91热爆 and other participating employers pay contributions to cover the balance of the cost of providing your Scheme benefits, as agreed with the Trustees. In other words, your employer carries the risks associated with investments and with people generally living longer, which will affect the cost of providing the benefits you have built up.

Additional voluntary contributions

You can pay Additional Voluntary Contributions (AVCs) to boost your pension benefits. The Scheme's AVC arrangements are described in a separate booklet which is available via the link at the bottom of the page.

You can also pay additional contributions to you own personal pension or to the 91热爆's defined contribution plan .

How does my pension build up?

You build up pension at the rate of 1/60th of your final pensionable salary for each year (up to a maximum of 40) you are an active member (part years count proportionately). To this is added any pension credits you may have (for example, as a result of a transfer from another pension arrangement).

(Pensionable service + credits/60) x final pensionable salary = scale pension

Part time service

If you work part time and your contractual hours are constant, your scale pension will be as calculated above.

If your part time hours vary and you have a mixture of part time and full time pensionable service, there is a different formula that must be used. This is explained in a separate leaflet available from the pension service line or on our downloads page.

Transfers in

The scheme does not accept transfers in from other pension arrangements.

When can I take my pension?

Payment at normal pension age

You can leave service at normal pension age (age 60) with an immediate pension payable for life.

Early payment

From age 55 onwards, you can leave service and ask for your pension to be paid early. With the 91热爆's agreement you can take your pension straight away. Your pension will be less than that payable at normal pension age. This is because:

• it is based on your final pensionable salary, pensionable service and any credits at the date you leave rather than normal pension age; and
• it will be reduced to allow for it being paid for a longer period than expected.

The reduction depends on your age at the time your pension comes into payment. The scale of reductions is set by the 91热爆 and the Trustees at the beginning of each calendar year. The following percentages are currently in use for members who take pension immediately on leaving service.

Following completion of the latest valuation and as part of the annual review some of the factors used to work out benefit options will change from 1 April 2024.

Between birthdays the reduction is proportionate.

Here is an example of how an early pension is calculated:

Annual pension built up to date - Early retirement reduction = Early retirement pension

Example:

John leaves the 91热爆 on his 55th birthday and has a final pensionable salary of £30,000 and has built up 30 years' pensionable service. His pension is calculated as:

30/60 x £30,000 = £15,000 p.a.

John's early payment pension is calculated as £15,000 less 21% = £11,850 p.a.

Late payment

If you work past normal pension age, there are four options available. You can:

• continue as an active member and, subject to Scheme limits, build up more pension. This will happen automatically unless you instruct the Trustees otherwise;
• take flexible payment, if you have not already done so;
• take your pension immediately and stop paying contributions; or
• stop paying contributions but postpone taking your pension.

If you stop paying contributions, pensionable service will stop. Your pension will be adjusted by a late payment factor, in addition to any normal pension increases, to reflect the time between when you stop paying contributions and when you take your pension. The rate of this late payment factor is determined by the 91热爆 and the Trustees. It is subject to periodic reviews and can go up or down. The factor that applies before 1 April 2024 is 4% per annum but following completion of the latest valuation and as part of the annual review the current factor will change from 1 April 2024 as reflected in the table below:

Flexible payment

From age 55 onwards, you can ask for your pension to be paid while continuing in service, provided the 91热爆 agrees. Any pension taken before normal pension age under the flexible payment provisions will be reduced for early payment. The scale of reductions is set by the 91热爆 and the Trustees at the beginning of each calendar year. The following percentages are currently in use:

Following completion of the latest valuation and as part of the annual review some of the factors used to work out benefit options will change from 1 April 2024.

Between birthdays the reduction is proportionate.

A booklet explaining flexible payment in more detail is available here.

Incapacity pensions

Incapacity means physical or mental impairment as a result of which, on the evidence of a doctor or other qualified person appointed by the 91热爆, the Trustees are satisfied:

• that you are incapable of carrying out your normal occupation; and
• it is likely to permanently and substantially impair your earning capacity.

If you leave service because of incapacity before normal pension age, you will receive an immediate pension provided the 91热爆 agrees.

It will be based on your final pensionable salary and credits at the date you leave, but if you have completed at least two years' pensionable service, your pensionable service will be increased as follows, subject to the Trustees' consent:

• if the 91热爆 decides that you are unable to follow your normal occupation, your pensionable service will be increased by half the number of days, excluding 29 February, between the date you leave service and normal pension age; or
• if the 91热爆 decides that you are unable to follow any occupation, your pensionable service will be increased to what it would have been, had you stayed in pensionable service until normal pension age

Incapacity pensions are subject to review and can be reduced or stopped if the Trustees believe that a member has recovered to any extent.

Can I exchange part of my pension for cash?

You can exchange part of your pension for a lump sum cash payment, which is currently paid tax-free by the Scheme. This is known as 'commutation'. The maximum cash you can take is 25% of the value of your scale pension benefits including any AVCs. If you take cash by exchanging pension, your scale pension will be reduced. Full details will be sent to you before your pension starts.

The table below shows the lump sum payable for every £1 of pension exchanged.

Following completion of the latest valuation and as part of the annual review some of the factors used to work out benefit options will change from 1 April 2024.

Taking cash does not affect the benefits payable to your dependants or children. Those benefits will still be calculated on your scale pension, as though you had not taken any cash. Before making the decision to exchange pension for cash, you should consider taking independent financial advice.

Does my pension increase?

New Benefits pensions are reviewed annually and any increases are awarded on 1 April. The Trustees increases both pensions in payment and deferred pensions by the lesser of:

• the rise in the Retail Prices Index (RPI) for the previous calendar year (January to December); or
• 5%

In the first year you will receive a proportion of any increase awarded. This will reflect the number of complete months from the time your pension started to the following April.

Increases are calculated on your actual pension in payment.

When the rise in the RPI is greater than 5%, the 91热爆 and the Trustees may jointly award a discretionary increase.

Increases are reported in the scheme's annual report, a copy of which can be downloaded on our documents page.

What happens if I opt out or leave service?

If you opt out or leave service you will no longer be an active member.

You will be entitled to a deferred pension payable at normal pension age. Your pension will be calculated as outlined here.

Deferred pensions receive increases during the period of deferment the same rate as pensions in payment including any increases required by legislation.

You can ask for your deferred pension to be paid before normal pension age, either because of incapacity or from age 55 onwards.

Payment is subject to agreement by the Trustees and your pension will be reduced for early payment. If you opted out and are still in service, the agreement of the 91热爆 will also be required. The scale of reductions is set by the 91热爆 and the Trustees at the beginning of each calendar year. In cases of incapacity the Trustees have discretion to waive some or all of the reduction.

The following percentages are currently in use:

Following completion of the latest valuation and as part of the annual review some of the factors used to work out benefit options will change from 1 April 2024.

Between birthdays the reduction is proportionate.

Late Payment

For New Benefits members who do not claim payment of their pension at normal pension age their pension may be adjusted by a late payment factor, in addition to any normal pension increases, to reflect the time between normal pension age and when payment of their benefits.  It is subject to periodic reviews and can go up or down.  The factor that applies before 1 April 2024 is 4% per annum but following completion of the latest valuation and as part of the annual review the current factor will change from 1 April 2024 as reflected in the table below:

Transfer of benefits

Instead of being entitled to a deferred pension from the Scheme, you can choose to transfer the value of your Scheme pension to one or more registered pension arrangements in the UK or overseas at any time before your pension starts. Unless you confirm otherwise, the Scheme Trustees will assume that the purpose of any transfer is to provide defined contribution (DC) benefits under another pension arrangement. The transfer value will be calculated in line with overriding legal requirements and is designed to represent the actuarial value of your benefits.

If you choose to transfer your Scheme pension to a DC arrangement, unless its total value is £30,000 or less on the valuation date, the Scheme Trustees will be required to check that you have recevied appropriate independent financial advice from a suitable financial adviser approved by the Financial Conduct Authority. Please contact the pension service line for more information.  If you are considering transferring your pension please beware of pension scams. Falling foul of a scam could mean you lose some or all of your money.  Go to for more information.

Different pension providers offer different options in relation to what you can do with flexible benefits, including the option to select an annuity. Different options have different features, different rates of payment, different charges and different tax implications.

There may be tax implications associated with accessing flexible benefits. Pension income is taxable and the rate at which income from a pension is taxable depends on the amount of income your receive from your pension and other sources.

Does temporary absence affect my pension?

Unpaid absences in the United Kingdom

Up to three months

Absences expected to last three months or less (other than those due to sickness) are treated as pensionable service, on condition that:

• contributions are paid by both you and your employer;
• you do not join another occupational pension scheme; and
• there is a definite expectation that you will return to work for the 91热爆 or a participating employer.

Recovery of contributions is automatic on your return, with the arrears being spread over six months, subject to Scheme limits on contributions.

More than three months

If your absence is expected to last more than three months, there must be prior agreement to maintain contributions in order for the period of absence to be treated as pensionable service. Both you and your employer must agree with the Service Delivery Manager before the absence begins that normal contributions will continue.

The same conditions as for absences of three months or less apply and the period of absence should not last for more than 10 years.

If no prior agreement is recorded, your pensionable service ends when your absence begins. You will be treated as having opted out and will become a life assurance member. If you become a life assurance member after 31 March 2011, this benefit will be reduced by any lump sum death benefit payable in respect of your deferred pension. Having opted out, you will not be permitted to rejoin the Scheme.

Unpaid absences outside the United Kingdom

If you are no longer resident in the United Kingdom, you cannot continue to build up benefits in the Scheme. You will be treated as having opted out and will automatically become a life assurance member. If you become a life assurance member after 31 March 2011, this benefit will be reduced by any lump sum death benefit payable in respect of your deferred pension. Such absences are best dealt with individually and should be referred to the Administration Manager before they begin.

Sickness absence

All periods of sickness absence are treated as pensionable service. During paid sickness absence, normal contributions are deducted. You will not be expected to make good unpaid contributions if you have a period of unpaid sickness absence

Family leave

Periods of paid family leave (i.e. maternity, adoption, paternity or parental support leave) are treated as pensionable service and normal contributions will be deducted.

If you want the whole part of a period of unpaid family leave to count in full as pensionable service, you will need to complete a form, which you can get from the documents page. The form needs to be completed and received by the Trustees within three months of your return to work, after which the option lapses. Arrears of contributions will be calculated on your current pensionable salary and must be paid within six months. If you do not make good the arrears, you will be credited with 60% of your unpaid family leave as pensionable service

Secondments

If you are seconded to work for another, non-participating employer, you can continue to build up pensionable service, on condition that:

contributions are paid by the non-participating employer and you during the same Scheme year as the pensionable service is earned;

• there is a definite expectation that you will return to work for the 91热爆, or another participating employer;
• the secondment, in total, does not exceed 10 years; and
• the benefits build up using the pensionable salary that you would have received, if you hadn't been seconded.

Additional restrictions may apply if your secondment is to another EU country.

Career breaks

If it is agreed that you take a career break, you will be treated as having left service. If you are re-employed, you will be eligible to re-join the Scheme as a New Benefits member provided that you do so at the first possible opportunity (ie immediately you become eligible). When planning a career break, you should consider carefully the impact it will have on your pension.

Further information is available from the pension service line.

What happens when I die?

Death in service

If you are an active member of the scheme and die in service, the following benefits are payable:

A lump sum

The Trustees will make a lump sum payment, which is currently free of inheritance tax. It will be equal to the lesser of four times your life cover pensionable salary as at the date of your death and your remaining Lifetime Allowance. The Trustees have discretion over who receives the cash and in what proportion. They take into account, but cannot be bound by, your wishes. You are therefore asked to let the Trustees know your choice of beneficiaries by keeping your expression of wish form up to date. If your circumstances change, a new form is available from the pension service line.

You should read the note '91热爆 Pension Scheme death in service provisions' for more information. The note is available from the pension service line.

If the lump sum is restricted because of the Lifetime Allowance, the balance will be used to provide additional pension for your dependants.

A dependant's pension

Your qualifying spouse or qualifying civil partner will receive a dependant's pension calculated as follows:

• It will be half of the pension you would have received had you remained in pensionable service until normal retirement age, but based on your final pensionable salary at the date of your death.
• If you have no qualifying spouse or qualifying civil partner, your nominated dependant will receive a pension. A pension paid to a nominated dependant will be reduced by any GMP payable and will not be payable if there are two or more qualifying children

Example:

Janet dies at age 45 with 15 years' pensionable service. She therefore has a further 15 years' potential pensionable service to normal pension age. Her final pensionable salary at the date of death is £30,000.

The dependant's pension is: 30/60 x £30,000 x 1/2 = £7,500 pa

Children's pensions

If a pension is payable to a qualifying spouse or a qualifying civil partner your qualifying children (up to a maximum of two) will each be entitled to a quarter of the pension you would have received had you remained in pensionable service until normal pension age, but based on your final pensionable salary at the date of your death.

If no qualifying spouse or qualifying civil partner's pension is payable, the children's pensions will be the lesser of:

• a pension for each qualifying child (up to a maximum of two) of one half of your pension you would have received had you remained in pensionable service until normal pension age, but based on your final pensionable salary at the date of death; and
• the amount of pension you would have received had you remained in pensionable service until normal pension age, but based on your final pensionable salary at the date of death, less any GMP payable.

Death before your deferred pension starts

If you die and have a deferred pension, the following benefits are payable:

A dependant's pension

Your qualifying spouse or qualifying civil partner will receive a dependant's pension calculated as follows:

• It will be half of the pension you would have received if you had taken it immediately before the date of your death (ignoring any reduction there would normally have been for early payment).
• If you have no qualifying spouse or qualifying civil partner, your nominated dependant will receive a pension. A pension paid to a nominated dependant will be reduced by any GMP payable and will not be payable if there are two or more qualifying children

Children's pensions

If a pension is payable to a qualifying spouse or a qualifying civil partner your qualifying children (up to a maximum of two) will receive between them a pension equal to a quarter of the pension you would have received if you had taken it immediately before the date of your death for each qualifying child (ignoring any reduction there would normally have been for early payment).

If no qualifying spouse or qualifying civil partner's pension is payable, the children's pensions will be the lesser of:

• a pension for each qualifying child (up to a maximum of two) of one half of your pension you would have received if you had taken it immediately before the date of death (ignoring any reduction there would have been for early payment); and
• the amount of pension you would have received if you had taken it immediately before the date of your death (ignoring any reduction there would have been for early payment), less any GMP payable.

A lump sum

If no pensions are payable, the Trustees will make a lump sum payment, which is currently free of inheritance tax. It will be equal to five times your deferred pension, with increases, to the date of your death.

The Trustees have discretion over who receives the cash and in what proportion. They take into account, but cannot be bound by, your wishes. You are therefore asked to let the Trustees know your choice of beneficiaries by keeping your expression of wish form up to date.

Death after your pension starts

Your pension is payable for life. On your death, the following benefits are payable:

A dependant's pension

Your qualifying spouse or qualifying civil partner will receive a dependant's pension.  It will be half of your full pension with increases to the date of your death.

If you have no qualifying spouse or qualifying civil partner, your nominated dependant will receive a pension. A pension paid to a nominated dependant will be reduced by any GMP payable and will not be payable if there are two or more qualifying children

Example:

John retires at age 60. His annual pension is £12,000. He exchanges some of his pension for a cash lump sum and receives a lower pension. He nominates his partner, Janet, as his dependant.

Following John's death, Janet will receive a pension of £6,000 pa for the rest of her life.

Children's pensions

Your qualifying children (up to a maximum of two) will receive a pension equal to a quarter of your full pension. If no qualifying spouse or qualifying civil partner's pension is payable, the children's pensions will be doubled. (subject to a combined maximum of your full pension less any GMP)

A lump sum

If you die within five years of your pension starting the Trustees will make a lump sum payment. It will be equal to the pension payments you would have received for the remainder of the five years at the rate payable immediately before your death, ignoring any levelling adjustment.

Alternatively, if you are being paid an incapacity and die any time before normal pension age, the Trustees will make a lump sum payment. It will be equal to four times your pensionable salary (ignoring the earnings cap) as at the date you left service, less any cash you took in exchange for pension (see Commutation.)

Lump sum payments are currently free of inheritance tax. The Trustees have discretion over who receives the cash and in what proportion. They take into account, but cannot be bound by, your wishes. You are therefore asked to let the trustees know your choice of beneficiaries by keeping your expression of wish form up to date.

Divorce or dissolution of a civil partnership

Pension rights may be taken into account on divorce or dissolution of a civil partnership. The court can order your pension to be divided between you and your ex-partner (ie your former spouse or civil partner), although whether this happens depends on the terms of the settlement.

Couples can choose to offset pension rights against other assets (eg the family home) or 'earmark' some (or all) of a member's benefits to go direct to your ex-partner when they come into payment. Alternatively, pension rights can be 'shared' as part of a 'clean break' settlement. Pension sharing creates a 'pension credit' for the ex-partner and a corresponding 'pension debit' for the member.

The scheme makes a charge for:

• providing information in connection with divorce proceedings, over and above that which it has a duty to provide free of charge under the existing statutory disclosure requirements;
• compliance with a pension sharing order or agreement; and
• any other activities in connection with pension sharing.

A more detailed explanation of pension sharing, how the scheme operates a pension sharing order or agreement, and a schedule of its charges are available from the pension service line.

You should consult and be guided by a suitably qualified family law practitioner on matters relating to divorce or dissolution of a civil partnership.