The Company is aware that situations and needs change and wants to support all employees. Therefore, under the flexible retirement option, you no longer need to stop working before taking your pension from the DB Section. Certain conditions apply, namely:
• You are aged at least 55;
• You have completed at least two years’ Pensionable Service;
• You have agreement from the Company; and
• You sign a new contract of employment which may not include any special terms that previously applied.
You have the same options available to you under flexible retirement as you do if you were retiring at your Normal Retirement Date.
You may continue to build up pension benefits after taking flexible retirement, but these will be as a member of the Defined Contribution (DC) Section of the Scheme. The basis upon which future pension benefits are earned differs greatly between the DB Section and DC Section. In the DC Section the Company will pay 6% of Pensionable Pay known as Employer Credits. These are held in a Personal Account on your behalf and are invested to purchase units in your chosen fund(s). The final value of these units will be used to provide benefits. Membership of the DC Section is non-contributory, but you may make personal contributions. If you decide to make personal contributions the Company will pay Matching Employer Credits up to a further 6% of Pensionable Pay. In the event of your death in Service you will be treated under the DB Section as having died after retirement (see Death benefits of a Pensioner member). In addition, a lump sum may be payable from the DC Section.
For more information about what benefits will be payable on your death if you become an Active member of the DC Section, please refer to the Member Booklet for the DC Section.
For more information about flexible retirement please contact the Administration Team. It is also recommended that you seek independent financial advice if you need help on making this very important decision. If you do not have a financial adviser details of those near to you can be found at www.unbiased.co.uk.