Left the scheme after 31 March 2014
How are my deferred benefits calculated?
Your benefits built up in the scheme from 1 April 2014 are calculated in the Career Average Revalued Earnings Scheme (CARE).
Whilst a member of the CARE scheme a 1/49th of your pay is added to your Pension Account each year. Each year’s pension is then revalued by inflation.
For membership from 1st April 2008 there is no automatic retirement grant but under current regulations, when you take payment of your deferred benefits you will be able to give up some of your annual pension to provide a retirement grant.
For every £1 of annual pension you give up you will receive £12 of retirement grant (subject to certain HMRC limits). More information on this option will be given to you when you take payment of your benefits.
When can I take my deferred benefits?
You have the flexibility, if you have membership from 1 April 2014, over when you can retire and take your pension. You will be able to choose to retire and draw your pension at any time between the ages of fifty five and seventy five.
Your Normal Pension Age is simply the age when you can retire and take the pension you have built up in full. For the pension built up from 1 April 2014, your Normal Pension Age is the same as your State Pension Age (but with a minimum of age sixty five). If you choose to take your pension before your Normal Pension Age it will likely be reduced, as it is being paid earlier. If you take it after your Normal Pension Age it will be increased because it is being paid later.
The amount of any reduction or increase applied will be based on how many years before or after your Normal Pension Age that you draw your benefits. Visit the webpage on early retirement to view the reductions table.
You can find out what your State Pension Age is by using the government’s State Pension Age Calculator.
In certain circumstances you may be able to release your pension early such as in cases of ill-health. Your employer should have a discretions policy in place as to how they deal with such requests. You can view you employer’s policy by following the hyperlink at the bottom of the page.
Do my deferred benefits increase with the cost of living?
Your deferred CARE pension is adjusted every year in line with the cost of living – as currently measured by the Consumer Prices Index (CPI).
Can I transfer my deferred benefits to another pension scheme?
You have the choice of transferring your pension at any time before 12 months of your Normal Pension Age out to another pension scheme.
State Pension Age calculator (This hyperlink redirects to the Gov.uk website)