Deferred Pension and Transferring out
Deferred pension
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. In respect of members who were in Pensionable Service in the Scheme when it closed on 30 September 2007, their deferred pension increases for the period between 30 September 2007 and 30 September 2010 will instead increase in line with any increases in their Salary if they remained in Service and if this would result in a higher increase.
Your deferred pension will normally come into payment when you reach age 60, though you may be able to take it earlier (but not before reaching age 55, unless you are suffering from incapacity), with the Trustee's consent. If you do take your pension early, the pension will be reduced for early payment on an actuarial basis which the Trustee decides (after consulting the Scheme Actuary).
At the point of retirement, you may be able to exchange part of your pension for a cash lump sum (or a dependant’s pension). XPS Administration will usually contact you to discuss your retirement options shortly before you reach age 60 - however, if you don’t receive anything please get in contact with them to discuss this before you reach age 60.
If you are still working at age 60 you can, if the Trustee agrees, delay payment of your deferred pension. If you would like to do this please get in touch with XPS Administration before you reach age 60. If the Trustees agree to you taking your pension later, the pension will be increased for late payment on an actuarial basis which the Company decides (after consulting the Scheme Actuary).
If you have paid AVCs, these will remain invested until you take your Scheme benefits.
A transfer to another pension arrangement
By giving notice to the Trustee at any time before your 59th birthday, you may be able to transfer the value of your Scheme benefits to:
- a new employer's pension scheme;
- a personal pension or another pension scheme or arrangement of your choice; or
- a 'buy-out' policy with an approved insurance company.
The amount available for transfer is the 'cash equivalent' value 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. Depending on the value of your benefits and the type of arrangement you wish to transfer to, you may need to satisfy a number of additional requirements including obtaining independent financial advice. You should also be mindful of the risk of pension scams.
You can request a transfer statement at any time up to your 59th 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.