Deferred Member

Retirement

When you retire, your pension will be based on your pension at the date you left increased in line with the Fund Rules. 

If you elected to defer your retirement at age 60 your pension will be based on the pension you had built up until the date you elected to defer retirement, plus the late retirement uplift of 8 percent a year and any pension increases granted between the date you ceased contributing and the date you retire. 


Retiring before age 60 

In the Fund, as a deferred member, your Scheme Pension Age is usually 60, if you retire before age 60 your pension will be reduced because it would be paid earlier and for a longer time. Here are some example reduction rates: 

In the Fund, as a deferred member, your Scheme Pension Age is usually 60, if you retire before age 60 your pension will be reduced because it would be paid earlier and for a longer time. Here are some example reduction rates: 

Retirement AgeReduction
588 per cent
5518 per cent
5033 per cent

What is the earliest age I can retire? 

If you joined the Fund before 6 April 2006, the earliest age you can retire and draw pension is age 50.  

If you joined the Fund on or after 6 April 2006 but before 4 November 2021, the earliest age you can retire and draw pension is age 55.   

If you joined the Fund after 3 November 2021, then from 6 April 2028 the earliest age you can retire and draw your pension will be 57. If however you reach age 55 before 6 April 2028 you can draw your pension from age 55 onwards, as long as you have drawn your pension before 6 April 2028.  

In all cases you can only draw your pension if you have left service when you take your pension, and any other applicable conditions are met. 


Taking a cash lump sum

When you retire, you can give up some of your annual pension for an immediate cash sum – which under current UK law is tax-free. The maximum lump sum that can usually be paid is currently 25 per cent of the ‘value’ of your pension at retirement, subject to an overall maximum of £268,275 from all. You can take anything up to the maximum – smaller amounts will provide you with a larger remaining pension. 

It is important to note that even if you take a lump sum and reduced pension, the Fund will not reduce the amount of any adult dependant’s or eligible children’s pensions payable on your death. The Fund will not charge you for taking a cash lump sum.  


Variable pension 

You may want to take advantage of a variable pension if you take your Fund pension before you reach your State Pension Age (SPA). A variable pension allows you to receive a higher pension1 until your SPA, and then a reduced one from SPA. You can take a variable pension regardless of whether or not you take a lump sum. When considering the variable pension you should be aware that this will increase the value of your pension for Annual 

Allowance and Lifetime Allowance purposes. 

The Fund must make sure that your reduced pension after SPA is at least half of your original pension and at least equal to your Guaranteed Minimum Pension (GMP). 

You should note that in relation to the variable pension, the SPA to which the higher level of pension is paid is the SPA that was in force at the date your pension commenced.  If legislation alters your SPA after the date your pension commenced, it will not alter the date to which the variable pension is paid. 

You can obtain a detailed forecast of your State Pension online at www.gov.uk/check-state-pension 

Other information about State benefits and pensions in general are also available at www.gov.uk 


Pension Increases 

Once in payment, your pension will increase each April. Your first year’s increase may be pro-rated. For example, if the full increase is 4 per cent and you have been receiving your pension for six months, you will receive a pro-rated increase of 2 per cent. 

For members below State Pension Age, the whole of your pension may increase in line with inflation. Inflation is measured by the increase in the Retail Prices Index (RPI) over the twelve months ending in the previous September. If you are a New Member increases are limited to a maximum of 5 per cent each year. If there is no increase in the RPI, your pension will remain unchanged for that year. 

Once you reach State Pension Age, increases will be paid on the various parts of your pension as follows:

Pension in excess of the GMP (including all pension earned after 5 April 1997)
This part of your pension is increased in line with inflation to a maximum of 5 per cent as above.
GMP earned between 6 April 1988 and 5 April 1997 
This part of your pension is also increased as above, except that the increases are limited to a maximum of 3 per cent each tax year.
GMP earned before 6 April 1988
This part of your pension is not increased by the Fund.

Planning for Retirement 

Our Pension Web Portal allows you to run your own retirement calculation and allows you to model the amount of tax free cash sum you take. 

You are encouraged you to seek suitable independent financial advice before making any decisions relating to your retirement. 

Further details can be found in our Guide to Retirement.