RHM Pension Plan 35 and Plan 45 - RHM Pension Scheme - UK.com
RHM Pension Plan 35 and Plan 45 - RHM Pension Scheme - UK.com
RHM Pension Plan 35 and Plan 45 - RHM Pension Scheme - UK.com
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Eligibility 10<br />
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Summary of the <strong>Plan</strong>s<br />
The <strong>RHM</strong> <strong>Pension</strong> <strong>Scheme</strong>, covering <strong>Plan</strong> <strong>35</strong> <strong>and</strong> <strong>Plan</strong> <strong>45</strong>, is summarised below. If you would like more information<br />
about a particular topic, please refer to the pages shown.<br />
On <strong>com</strong>pletion of three months’ continuous service,<br />
membership of the <strong>Plan</strong>s is open to all permanent<br />
employees aged between 16 <strong>and</strong> 65.<br />
Contributions 12<br />
You pay contributions at the following rates:<br />
<strong>Plan</strong> <strong>35</strong>: 3 1 /2% of <strong>Pension</strong>able Earnings.<br />
<strong>Plan</strong> <strong>45</strong>: 5% of <strong>Pension</strong>able Earnings.<br />
You receive full tax relief automatically.<br />
Your employing <strong>com</strong>pany pays the balance of the cost of<br />
all the benefits provided by the <strong>Plan</strong>s.<br />
<strong>Pension</strong>able Earnings 12<br />
There are two alternative definitions of <strong>Pension</strong>able<br />
Earnings <strong>and</strong> you can choose which of these definitions<br />
your contributions <strong>and</strong> benefits will be calculated on.<br />
If you choose the “full earnings definition” of<br />
<strong>Pension</strong>able Earnings, you will pay higher contributions<br />
than if you choose the “LEL definition” <strong>and</strong>, in return,<br />
you will be building up a bigger pension. A number of<br />
other benefits provided by the <strong>Plan</strong> will also be larger if<br />
you choose the “full earnings definition”.<br />
Additional Voluntary Contributions 14<br />
You may pay Additional Voluntary Contributions in order<br />
to increase your benefits at retirement. AVCs enjoy certain<br />
tax advantages over other forms of voluntary saving.<br />
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<strong>Pension</strong> 16<br />
Normal <strong>Pension</strong> Age is 65.<br />
You will earn pension at the following rates:<br />
<strong>Plan</strong> <strong>35</strong>: 1/80th of Final <strong>Pension</strong>able Earnings for each<br />
year of <strong>Pension</strong>able Service in <strong>Plan</strong> <strong>35</strong>.<br />
<strong>Plan</strong> <strong>45</strong>: 1/60th of Final <strong>Pension</strong>able Earnings for each<br />
year of <strong>Pension</strong>able Service in <strong>Plan</strong> <strong>45</strong>.<br />
Tax-free cash sum 18<br />
You may have the option to exchange part of your<br />
pension at retirement for a tax-free cash sum.<br />
Early retirement 20<br />
With your employing <strong>com</strong>pany’s agreement, you may<br />
retire from service at any time between the ages of 60<br />
<strong>and</strong> 65 <strong>and</strong> receive an immediate pension based on your<br />
<strong>com</strong>pleted <strong>Pension</strong>able Service, with no reduction for<br />
early payment.<br />
OR<br />
If you retire, with your employing <strong>com</strong>pany’s agreement,<br />
at any time between the ages of 50 <strong>and</strong> 60, you will<br />
receive an immediate pension based on your <strong>com</strong>pleted<br />
<strong>Pension</strong>able Service, but in this case your pension will be<br />
reduced by 4% for each year before age 60.
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