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Retirement benefits
Overview
In the Saver Plan Plus, your benefits build up at a rate of 1/60th of your final pensionable salary for each year of pensionable service, subject to maximum limits.
You can give up some of your pension and take it as a tax-free cash sum, broadly up to 25% of the value of your benefits, up to your available Lifetime Allowance. This will reduce your pension, so you should consider taking independent financial advice first. Your pension will be paid monthly from the first working day of the month after your retirement.
Retirement means different things to different people. Some may want to retire early, while others may choose to work past age 65 and continue to build up benefits. Or you may want to make more of a transition into retirement. Whatever you want to do, the Plan gives you a range of options.
Drawing your pension as an active member
You may be able to:
- start drawing your pension at your normal retirement date
- start drawing your pension before or after age 65
- make a transition into retirement by choosing a flexible retirement option
- start drawing your pension because of ill health.
Active member - normal retirement
Your normal retirement date is the end of the month in which you reach age 65.
Active member - early retirement
Subject to Company and Trustee consent, you can retire at any time from age 55. However, if you have reached age 60 (or age 55 if you are a NHSPS A member) you can retire without the consent of the Company and the Trustees.
If you retire at or after age 60 your pension will not be reduced, but if you retire before age 60 your pension will be reduced by 3.6% for each year between ages 55 to 60.
Your early retirement pension will be calculated as for normal retirement, but will be based on your actual pensionable service and your final pensionable salary when you retire.
Active member - flexible retirement
With Company consent, you can stay in employment after age 55 and choose one of the following scenarios:
| Options | |||
| Draw your benefits1 | Remain in the Plan as an active member | Join the Investor Plan | |
| 1 | Yes | Not permitted | Yes |
| 2 | Yes | Not permitted | No |
| 3 | No | Not applicable | Yes |
| Options | |||
| Draw your benefits1 | Remain in the Plan as an active member | Join the Investor Plan | |
| 4 | Yes | Not permitted | Yes |
| 5 | Yes | Not permitted | No |
| 6 | No | Yes3 | Not applicable |
| 7 | No2 | Not applicable | Yes |
| 8 | No2 | No2 | No |
1. You can also draw half of your benefits and become a pensioner of the Plan.
2. Death benefits differ from those for deferred members.
3. No permissions required.
If you draw your benefits before normal retirement date, the same reductions apply as for early retirement.
If you stop being an active member of the Plan, you become a deferred member and, with Trustees’ consent, can postpone drawing your benefits up to age 75. Your benefits will be increased to allow for this late payment. You can’t draw your benefits any later than age 75.
Active member - ill-health retirement
If you have to give up your job due to incapacity, you may be entitled to an immediate pension at any age, subject to Trustees’ approval. They will take medical advice before agreeing to pay ill-health pensions.
An ill-health retirement pension will be calculated as for normal retirement, but using your final pensionable salary at your date of leaving, and your potential pensionable service to normal retirement date subject to maximum limits.
Drawing your pension as a deferred member
You may be able to:
- start drawing your pension at your normal retirement date
- start drawing your pension before or after age 65
- start drawing your pension because of ill health.
When you retire, your benefits will be based on your actual pensionable service and your final pensionable salary when you left.
Between your date of leaving and drawing your benefits your deferred benefits are indexed. The indexes are governed by law and are described as Statutory Revaluation. This helps to preserve the value of your benefits. Different rates apply to any Guaranteed Minimum Pension (GMP).
Deferred member - normal retirement
Your normal retirement date is the end of the month in which you reach age 65. Your pension will depend on how long you have been a member of the Saver Plan Plus, including any transferred-in service from a previous pension scheme.
Deferred member - early retirement
Subject to the Trustees’ consent, you can draw your deferred benefits at any time between age 55 and age 60. However, if you have reached age 60 you can draw your benefits without the consent of the Trustees.
If you draw your deferred benefits before reaching age 60, your benefits will be reduced. These reductions will reflect the period between the date you draw your benefits and age 60. The Trustees will, in consultation with the Company, set the level of the reductions to be applied to the early payment of deferred benefits.
Deferred member - late retirement
With the Trustees’ consent, you can postpone drawing your benefits up to age 75. Your benefits will be increased to allow for this late payment. You can’t draw your benefits any later than age 75.
Deferred member - ill-health retirement
If you have reached age 55 no special terms arise from your reason for retirement.
If you have not reached age 55 and you have to give up your job due to incapacity, you may be entitled to an immediate pension at any age, subject to Trustees’ approval. They will take medical advice before agreeing to pay ill-health pensions. Your pension will be reduced to reflect early payment.