Pensions Not In Payment (Deferred)

When you leave a final-salary pension scheme like this, your benefits get frozen. This is called ‘preservation’ or ‘deferment’.  Your pension is worked out and fixed at the date you leave the pension scheme and then, in most cases, it increases every year in line with prices (subject to specific caps) to make sure its value doesn’t drop.

Unless you decide to move it, your pension will stay in this scheme, until you get to your normal retirement date. The scheme will then pay a pension to you direct for the rest of your life.

Now that you have stopped building up a pension in this scheme, the value of your pension is fixed. Although this might go up every year in line with prices, no other changes take place. Because of this you will no longer get a benefit statement from us every year.

Download a Guide to Deferred Pensions

Your Options

You can leave your pension where it is and do nothing. The pension will, in most cases, increase every year in line with prices and then, when you get to retirement, the Scheme will pay you a pension for the rest of your life.
You have the option to transfer to another pension scheme at any time up to one year before your normal retirement date. You can sometimes transfer after this date but you will need to contact us to find out if this option is available to you. You should speak to an independent financial adviser if you want to investigate this option. We can’t tell you if a transfer is the right option or if it will benefit you.
If you are over age 55, you can sometimes start to have the pension early. This might include giving up part of the pension for a tax-free lump sum. The further you are away from your normal retirement date, the more the pension will be reduced. The law currently states that it is only people over age 55 who have this option – this is currently the same for all UK pension schemes although could change.

Frequently Asked Questions

If you have paid into the Plan for more than two years then you cannot have a refund. If you want to take the whole of your pension as a cash lump sum then you will need to transfer it to another pension scheme that provides access to this option. You should speak to a financial advisor when considering transferring a pension.
Now that you have stopped building up a pension in this scheme, the value of your pension is fixed. Although this might go up every year in line with prices, no other changes take place. Because of this you will no longer get a benefit statement from us every year.
The current minimum age in the UK that you can start taking your pension is age 55. From 6 April 2028, this will increase to age 57. Please contact us if you are interested in taking your pension early and we can tell you whether you will be eligible and how this might affect the level of pension that is paid to you.
Make sure you keep us advised of any changes to your contact details as we will need to get in touch with you when it’s time to start paying you your pension. You do not need to do anything else as we will automatically contact you closer to your retirement date with details of your pension.