Sunset And Single Rock

Payment of benefit

Payment of benefit

Payment of your pension

Your pension begins, if you retire on the first day of the month, on that day, and in any other case on the first day of the month following that in which retirement takes place.

Pensions are payable on the last working day of the month, in advance. This means the pension you receive on 31 May is that due to you for June.

Your pension can be paid into a bank or building society.

Pensions are treated as earned income for tax purposes and tax is deducted under the PAYE system.

If you are not resident in the UK when you retire, you may elect to have your pension denominated in a currency other than sterling.

Your pension ends with the instalment payable for the month of your death.

Increases to pension in payment

Eligible Plan pensions, whether to members or dependants, are increased on 1 May each year.
The Plan Rules provide for increases of the lesser of 5% per annum and the increase in the General Index of Retail Prices (RPI) published in February each year. If RPI is less than 0% your pension will not be reduced.

Increases above these rates, having regard to changes in the RPI and the resources of the Plan, are at the discretion of the Trustee and are subject to the approval of the Company.

After your pension begins, you will be advised yearly of the rate of increase applicable.

Payment of lump sum death benefits

Lump sum death benefits are held by the Trustee under a discretionary trust.

This means that lump sums paid as a result of a member’s death are not subject to Inheritance Tax.

However, this means that the Trustee must decide to whom such benefits are paid. The Trustee will consider your wishes when exercising its discretionary powers in this regard but you must keep them informed of your wishes for them to be able to do this effectively.
To guide the Trustee, you are invited to complete form P7 entitled ‘DISPOSAL OF DEATH BENEFITS’ and return it to the Pensions Office (see contact details). You should complete a new form P7 if and when your personal circumstances change.

Form P7 can be downloaded from here or obtained from the Pensions Office.

State benefits

State pensions are payable in addition to any benefits under the Plan or any personal pensions you may have.

A quotation of your Social Security pension may be obtained from https://www.gov.uk/state-pension-statement.

The age at which people may take their State pensions is going up depending on the individual’s date of birth. Details of your likely State Pension Age (which may be subject to further change) can be found on www.gov.uk/calculate-state-pension.