FAQs

Do you have a query? As many of the questions put to Pensions are of a similar nature, we have answered some of the most frequently asked questions below.

So do look to see if your question is answered. If it isn't, then please contact Pensions.

1 Can I pay money (e.g. transfers) into the Scheme after I leave to boost my pension?

No, HMRC rules do not allow this option.

2 Will you still let me have a benefit statement every year?

We will provide you with an update on your benefits, if you ask. At this point in time statements are not issued automatically.

3 If I want to transfer my pension away from the Scheme, do I have to leave the Company first?

No. Transfer payments can be requested if you are no longer contributing to the Scheme but you are still working for the Company.

4 Is the transfer payment a fixed amount?

No, its what's called the 'cash equivalent' of your preserved pension benefits. The older you are when you take a transfer the more valuable those benefits will tend to be, so the larger the transfer value. However the cash equivalent also makes allowance for investment conditions when the payment is made, and this allowance can either increase or decrease a transfer value.

5 When can I draw the preserved pension?

Normally at any time after age 55, though it will be reduced for early payment if you draw it before age 65.

Note: PSS benefits are not age-reduced after age 63

6 Can the pension be paid sooner if I become ill?

The Trustee has a discretion to pay a preserved pension before age 55 if it is satisfied by medical evidence that you are suffering ill health. The pension will be reduced for early payment.

7 Is my preserved pension 'frozen'?

The law requires preserved pensions which have been based on the member's salary and length of membership to increase in deferment. You should have been given information on how benefits are revalued when you received details of your pension soon after you left service.

8 Will you contact me when I can draw my pension?

No, the obligation is on you to contact us.

9 What is paid if I die before drawing the preserved pension?

Generally your spouse will receive one half of your preserved pension, as increased to the date of your death, as a pension, though there are exceptions. In addition your contributions will normally be refunded as a lump sum payment.

10 Are preserved pensions increased once in payment?

They are increased in the same way as any other pensions in payment. The detail is explained when you start to draw your pension.