Mirror Image Section - About United Utilities

Leaving UUPSIf you leave UUPS, for instance as a result of leaving theCompany, you will still qualify for benefits from UUPS.Glossary of termsSome of the words and phrases usedin this Guide have special meanings.These are highlighted and explainedat the back of this Guide.The benefits available to you dependon your length of service at the timeyou leave.What happens to your pension rights ifyou leave UUPS?The choices available depend on the lengthof your Qualifying Service:Under two years• repayment of your contributions plusinterest less deductions to make up yourNational Insurance contributions in theAdditional State Pension and tax (currentlyat the rate of 20%).Two or more years (or if you have transferredother pension rights to UUPS)• preserved benefits for all your PensionableService (known as deferred benefits), or• transfer of your deferred benefits to anotherapproved pension scheme, personalpension plan or a buy-out annuity policyfrom an insurance company, or• immediate retirement benefits if you areaged over 50 (see pages 7 and 8), or• Incapacity pension benefits if you satisfythe Incapacity requirements (see page 9).What are deferred benefits?A deferred benefit consists of a retirementpension and lump sum calculated in thesame way as benefits at NRD but based onPensionable Service and Final PensionableEarnings at your date of leaving. The deferredbenefits are increased between your date ofleaving and your date of retirement.When are deferred benefits payable?A deferred benefit is payable without reductionin the following circumstances:• at age 65• from age 60 onwards, provided youwould have completed 25 years’Qualifying Service (had you continuedas a member of the Mirror Image sectionof UUPS)• if you are suffering from Incapacity• from age 50 onwards if your employerconsents on compassionate grounds.In other circumstances, your deferred benefitsmay be payable at any time after age 60, butwill normally be reduced to take account ofearly payment.What happens to your deferred benefitsif you die before retirement?Pensions will be provided for your spouse andany dependent children in the same way aspensions payable three months after death inservice (see page 12) although the pensionswill be based on Pensionable Service to dateof leaving, increased up to your date of death,and will commence immediately on your death.16United Utilities Pension Scheme Members’ Guide