When you retire, you will receive your deferred pension from the Plan which will be paid to you every month for the rest of your life.
Your deferred pension is based on your final pensionable pay at the date you left pensionable service. Your Plan pension is payable from age 65.
You may also be entitled to a SAP (special additional pension) payable from age 65. As a deferred member, your pension will increase each year between the date you left and the date you retire in line with the Consumer Prices Index capped at a maximum of 5% for service to 5 April 2009 and at a maximum of 2.5% for service after 6 April 2009.
Your options as a deferred member are:
- Draw your pension – if you are aged 55 or over and have at least five years' pensionable service, you may be able to draw your Plan pension. It will be reduced for early payment. However, you will not be able to take your pension early if after reduction, the pension is less than the Guaranteed Minimum Pension (GMP) at GMP age.
- Transfer out – you are entitled to transfer your pension to another registered pension arrangement. Please remember that the Plan pension is a valuable benefit. If you wish to consider transferring your benefits, it would be advisable to seek independent financial advice. It your transfer value is greater than £30,000, it is a requirement to have independent financial advice.
If you are interested in transferring your Plan benefits, you can request a transfer value from the Pension Department. Your transfer value is guaranteed for three months from the date it is calculated. You are entitled to a statement once a year, unless it is required for divorce proceedings.