Your pension was calculated when you left the Partnership, or at the date the Section closed (1 April 2020), whichever is later.
This is when you became a ‘deferred’ member. Your future pension is increased by an amount similar to inflation between that date and your retirement date.
To get an idea of what your pension will be worth at retirement you can run quotes using the XPS MyPension online modeller by following the steps below:
Visit the MyPension modeller
If you decide to take all your DB benefits as a pension, you’ll receive monthly payments for life. You can find out how much your full pension might be by logging in to your MyPension account.
If you also have a Partnership pension with Prudential or Legal & General, this will also be included in the calculations of your tax-free cash sum.
If you decide to take all your DB benefits as a pension, you’ll receive monthly payments for life.
When you take your DB benefits, you can usually take up to 25% as a tax-free cash sum. The rest will be paid to you as a reduced pension each month for the rest of your life.
If you also have a Partnership pension with Prudential or Legal & General, this will also be included in the calculations of your tax-free cash sum.
If the capital value of all your pensions, including your DB Section benefits in the Scheme are below £30,000, you may be offered the option to take a one-off cash sum. The capital value is calculated by working out the value of your pension and tax-free cash entitlement.
Taking a one-off cash lump sum is called trivial commutation.
This option won’t appear when you run retirement calculations on XPS’s modeller.
If you’re below the minimum retirement age (currently 55, increasing to 57 in 2028) and are unable to work due to ill health, you may be able to claim your pension before the minimum retirement age on the grounds of ill health.
If you currently work for the Partnership, you’ll need to discuss retiring on the grounds of ill-health with your manager.
If you no longer work for the Partnership, you can contact XPS to find out if you may be eligible for this.
You may be able to transfer your benefits to another pension arrangement to give yourself more options at retirement – such as ‘drawdown’ which means taking your money as and when you need it. However, it’s important to make sure this is the right choice for you because you’ll be giving up a guaranteed regular pension income from the Scheme and other related benefits – it’s a big decision to make. If you have a pension pot with Prudential and/or L&G, those DC funds will be included in your transfer out pack. However, you can choose to transfer your DB benefits separately to your DC Section pension pot.
It’s a good idea to take financial advice when you’re making important financial decisions. If your pension is worth £30,000 or more, you legally have to take financial advice before a transfer out of a DB pension can happen.
If after taking regulated financial advice, you want to go ahead with a transfer, you need to contact XPS to request the relevant forms. If your Independent Financial Advisor (IFA) requests a transfer out quotation on your behalf, they will need to provide a signed Letter of Authority before XPS can share any details of your pension with them.
If you were working at the Partnership before 29 July 2006 and part of the pension scheme at this time, you may be able to get a Temporary Pension. This is a pension that is paid from your retirement date until you reach your State Pension Age and it will then stop. It’s paid in addition to your DB lifetime pension.
Your pension benefits may be subject to allowances set by legislation. We know these rules are complicated so if you have any questions, or think you may go over one of these limits, it’s best to get in touch with XPS who can help you.
You can also find more information about these thresholds on the government website, Tax when you get a pension.
You’re likely to be a member of the DB Section of the Scheme if you worked at the Partnership before 1 April 2015. XPS is the administrator of the DB Section.
The DB Section closed on 1 April 2020 and therefore members who joined the Partnership after 1 April 2015 will only have a Defined Contribution pension pot.
This is where you can find information about your current pension if you’re a Partner now, or were a Partner after 1 April 2015. The Defined Contribution pages are probably the most important for you.
Members who joined the Partnership before 1 April 2015 may also hold DC pension pots with Prudential or Legal and General, as well as a Defined Benefit Pension in the Scheme. We previously referred to this as Hybrid or Dual Benefit. This is because you may have joined the DC Section of the Scheme when you started working at the Partnership and then, after a defined waiting period (which depends on the date you joined the Partnership), you would have become eligible to join the DB Section.
The DB Section closed on 1 April 2020 and therefore members who joined after 1 April 2015 will only have a DC Section pension pot.
