After you left Service your deferred pension is increased each 1 April between leaving and age 60. This increase is broadly in line with the rise in the Retail Prices Index or 5% a year if less. If you have been deferred for less than a year the first increase will be proportionate.
Your deferred pension will normally come into payment when you reach 60, though you may be able to take it earlier, with the Trustee's consent. At that point, you may be able to exchange part of your pension for cash. Please note you will need to contact XPS Administration to request that your pension is brought into payment.
If you are still working at age 60 you can, if the Trustee agrees, delay payment of your deferred pension. It must, however, come into payment no later than your 75th birthday.
If you have paid AVCs, these will remain invested until you take your Scheme benefits.
A transfer to another pension arrangement
You may transfer the value of your Scheme benefits to:
- a new employer's pension scheme;
- a personal pension or stakeholder pension of your choice; or
- a 'buy-out' policy with an approved insurance company.
The amount available for transfer is the 'cash equivalent' of the benefits you have built up in the Scheme. Your transfer value will be calculated on a basis set by the Trustee on the advice of the Scheme actuary and in line with statutory requirements. Transfer values do not include any allowance for possible future benefit improvements or discretionary pension increases.
If you are interested in making a transfer, please contact XPS Administration. They will send you a 'Statement of Entitlement' and information about what you need to do.
You can ask for a transfer statement at any time up to a year before your 60th birthday. You are legally entitled to one such statement in any calendar year. Further statements are provided at the Trustee's discretion and you may be charged for the cost of the additional administration.