If you leave Service, or opt out of the DB Section, without transferring your benefits to another registered pension scheme, your pension will remain in the DB Section until you reach your Normal Retirement Date and you'll become a Deferred member.
Your deferred pension is calculated in a similar way to that described in the retirement benefits page of this website but using your Pensionable Service and your Final Pensionable Earnings at the date you left Service.
Your deferred pension will be increased (or revalued) until you take it, to reduce the impact of inflation. Your pension is made up of several elements, and each of these elements may revalue at a different rate. When you joined and left the Scheme will also impact how your pension revalues in deferment. If you joined the Scheme after 31 December 1990 your pension will revalue in accordance with the details below. If you joined the Scheme prior to 1 January 1991 please refer to Appendix I of the Member Booklet (available to download from the Document library section of this website) for details of how your pension revalues in deferment.
Revaluation of pension in excess of Guaranteed Minimum Pension (GMP)
Your deferred pension in excess of any accrued GMP will increase in line with the Occupational Pensions (Revaluation) Order (known as Section 52a orders). These orders currently increase in line with Consumer Prices Index (CPI) inflation subject to a cap of 5% p.a. on pension accrued before 6 April 2009 and a cap of 2.5% p.a. on pension accrued after 5 April 2009.
Revaluation of GMP
If you left the Scheme on or after 6 April 1997 your GMP will increase annually in line with Section 148 Orders. Section 148 Orders are based on the increase in the National Average Earnings (NAE) Index each year. The same increases to your GMP will apply if you left the Scheme before 6 April 1997, except that the increases will be capped at 5% for each complete tax year between the date you left the Scheme and age 60 (for females) or age 65 (for males). The increases to GMP apply at GMP Pension Age.