Pensions

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The GMP benefit within your policy is
based on the length of your service in your
former OPS and your salary. Accordingly,
this benefit has been classified as a
Defined Benefit and falls outside of the
new flexibilities.
So, no lump sum is payable except where
already permitted within the terms of your
policy. For example, if you have benefits in
your policy in excess of your GMP benefit,
there is a clause in your policy allowing
you to exchange this excess for a tax free
lump sum provided it is within certain
prescribed limits.
Taking your pension benefits –
further information
As you approach your chosen retirement
date we will send you a detailed pack with
all your options and details of what you
need to do.
To help you understand your options and
make the right choices, the Government is
making available a free and impartial
guidance service - Pension Wise. We
strongly recommend that you use this
service to help you understand your
options and make the right decision. You
can access Pension Wise online by visiting
gov.uk/pensionwise.
This service will not provide advice or
recommend specific products or providers.
If you feel you need advice, we recommend
you talk to a financial adviser. If you do
not have a financial adviser, you can get
details of local financial advisers by visiting
unbiased.co.uk. Advisers may charge for
providing such advice and should confirm
any cost to you beforehand.
What happens if I die before I take
my pension benefits?
Depending on the features of your original
occupational pension scheme, your policy
value will be used to provide either:
– a pension for your spouse or civil
partner, or
– a lump sum payable to your next of kin
or a dependant, or
– a mixture of both.
If you die before the age of 75, it will
normally be paid tax free. If you die after
the age of 75, it will be subject to tax at
45% if it is paid before 6 April 2016. After
this date it will be taxed as income, i.e.
depending on their total taxable income in
a year, your beneficiary may pay income
tax on these payments.
What happens if I am in ill-health?
If you retire early due to ill health, we may
be able to make special arrangements for
when and how you access your pension
benefits. For example, if you are in severe
ill health it may be possible to access your
pension benefits before age 55.
Can I transfer my policy?
You can transfer your policy to another
pension provider at any time before you
access your pension benefits. We will not
charge for doing this.
However, if you do transfer your policy,
you will lose the valuable policy
guarantees described earlier.
We recommend that you speak to a
financial adviser before you transfer your
policy.