Frequently Asked Questions

If one of your employee’s will need to stop working because of because of ill-health you should contact us as the member may be eligible to have their pension paid early.

We will:

• let you know the eligibility criteria that the member will need to meet,
• For some schemes Ill Health retirement may be subject to the approval of the relevant scheme committee,
• advise what medical evidence will be required from the member,
• send a questionnaire for you to complete and return to us;
• send a form for the member to complete and return giving consent for us to obtain medical reports. Only members who are under age 55 (or under age 50 if they have a Protected Pension Age) may need to provide a medical report.

You should:

• Pay across the final month’s the final month’s contribution in your normal monthly contribution submission.This should be adjusted if the member leaves part way through a month.
• Submit the date of leaving on your submission.See Benpal for guidance.

The benefits that are payable will depend on the scheme the member is in:

Defined Contribution Scheme member (including Hybrid members)

If the member satisfies the eligibility criteria they will have their current fund value paid to them. Depending on their medical condition, there may be an option for the member to purchase an 'enhanced' annuity (pension). 

Please advise your employee that it is unlikely that benefits will be paid out on the actual retirement date. This is because if a member remains in the Scheme right up until the retirement date, their final contribution will not be paid into the Scheme until after this date. 

The final value of the fund payable will include the final contribution which needs to be invested in the relevant fund. If members are making financial decisions around their retirement date, they need to bear in mind that there may be a delay of two to three months before benefits are paid.

If the early payment of benefits is approved, the process will follow the normal retirement process. Once the benefits have been paid, the member's record will be closed, as no benefits will remain in the Scheme.

Defined Benefit scheme member

If the member satisfies the eligibility criteria they will have their pension calculated differently depending on the scheme they are in. To determine the benefits payable in respect of ill health retirement, please see your relevant scheme information.

For Defined Benefit members the committee have the right to request updated medical evidence and could reduce or suspend the member’s pension if their eligibility changes in the future.

Serious ill-health

Where there is medical evidence that the life expectancy of a member is less than a year a cash lump sum may be paid instead of a pension. We would need evidence from a medical professional to confirm the employee’s life expectancy.

Cash lump sum benefits paid on serious ill-health grounds are tax-free providing that they do not exceed the member's available Lifetime Allowance.

If it seems likely that a member may qualify, you should inform the Administration Team as soon as possible who will then provide guidance on how to proceed.

If there is medical evidence that you are unable to work again in any capacity then your pension may be paid immediately, no matter how old you are.

If you sign into DB Online (if you are a member of a Defined Benefit scheme) / Benpal (if you are a member of a Defined Contribution scheme) you will be able to request information on your eligibility for ill health early retirement. If you do not use DB Online or Benpal you can contact us directly.

Defined Benefit Scheme Members

If your application is approved there will be no reduction applied to your pension benefits for early payment and you still have the option to take a tax-free lump sum.

If your application for ill health early retirement is approved we may need to periodically request updated medical evidence to ensure that you are still able to receive this benefit. If your circumstances change we could reduce or suspend your pension.

If you wish to see how your pension would be calculated if you retired on ill health you may wish to look at your member guide. 

Serious Ill Health (Life expectancy less than 12 months) - If your life expectancy is less than 12 months you could take your benefits as a one off payment which is tax free. We would need evidence from a medical professional to confirm your life expectancy.

Defined Contribution Scheme Members

If your application is approved the current fund value would be paid to you no matter how old you are.

If you forget your password, you can reset it by clicking 'Forgotten Password' on the DB Online login page and following the simple instructions given.

When you leave your employer or if you choose to leave the scheme while you are still employed, you will no longer pay contributions into the scheme. Your employer will let us know the date you left the scheme and send us your final contribution. We will then write to you with full details of your options.

Depending on your age and how long you were in the scheme there will be different options available to you:

Becoming a deferred member of the scheme

You can leave your benefits in the scheme and become a deferred member. 

Information on how long you can delay taking your benefits can be found by following this link: How long can I delay taking my pension?

Defined Benefit Scheme Members

Your benefits can increase over time between leaving and retiring depending on your scheme and how long you were in this scheme. 

Defined Contribution Scheme Members

Your funds will be invested until you retire or transfer to another pension arrangement.
If you wish to see how your benefits may increase or how they are invested you may wish to look at your member guide or our investments page.

Taking your benefits at retirement

If you are old enough you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide that you may want to look at.

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or Benpal (if you are a member of a Defined Contribution scheme) you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information that we’ll send to you.

Leaving because of ill health 

If you are leaving employment for ill health reasons then you may be able to apply to have your benefits paid early.

Information on ill health early retirement can be found using the following link: What do I do if I am too ill to work?

Refund of contributions

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme. (Service includes any service from other memberships you have with us and any transferred service from another pension into the scheme.)

If you can have a refund of contributions this will be included in the information that we’ll send to you.

You can find out more about taking a refund of contributions using the following link: Can I take a refund of contributions?

Transferring benefits

After you leave the scheme you may want to transfer your benefits to another suitable pension provider. You can find more information on transferring your benefits using the following link: Can I transfer my benefits?

Internal transfer

If you join a new employer within 30 days of leaving your previous employer and your new employer offers a scheme we administer then you may be able claim continuous service under the scheme.

You can find out more about whether you would be able to claim continuous service using the following link: Can I transfer my benefits to my new employer? 

Re-joining the scheme with the same employer

You can re-join the scheme with the same employer if your employer and the Pensions Committee agree. 

You would re-join the arrangement that your employer currently offers which can be different from the section you were in before.

Auto enrolment

When you have left a scheme that you were auto-enrolled into, your employer is required to re-enrol you. The employer will re-enrol you on anniversary of their staging date, which is every three years. If you are re-enrolled then you can opt out again.

Find out more about auto enrolment.

If you need more information please contact us. 

You may need to take time away from work for various reasons including maternity leave, paternity leave, adoption leave, parental leave or sickness. The sections below explain what will happen in respect of making pension contributions during this time.

Family Leave (Maternity Leave/Adoption Leave/Paternity Leave/Additional Paternity Leave)

If you take Adoption Leave, Paternity Leave or Additional Paternity Leave you will be treated in the same way as a woman taking Maternity Leave.

For the first 39 weeks of maternity leave:

• You will pay your normal rate of contributions but only on the pay you actually receive during maternity leave, this includes Statutory Maternity Pay.
• Your employer will be expected to pay their normal contributions based on the pay you would have been receiving if you were not on maternity leave plus any shortfall in your contribution.
• Your membership will continue as normal, based on the salary you would be receiving if you were not on maternity leave.
• If you return to work before the end of this period, contributions must start up again immediately.
• If you are receiving Maternity Allowance, this means your employer is still liable to pay pension contributions even though you are receiving pay direct from the State and not from your employer. Your employer will pay both member and employer contributions for the first 39 weeks based on the pay you would have been receiving had you not gone on maternity leave.

After the first 39 weeks:

• We would not expect any contributions unless you are receiving pay. You will have a break in your service for any period where no contributions are paid.
• On your return, you can choose whether to make extra contributions to cover the period that you have been away. Your employer has discretion whether to pay their share. If they decline to pay you may, if you wish, pay the employers share. If you choose not to pay the contributions you will receive reduced benefits at retirement.
• If you die whilst on maternity leave, the full range of death benefits that would be payable if you were not on maternity leave would be paid. This would be based on the rate of earnings you would have been receiving if you were not on maternity leave.

Other absence

If you have any other absence for example Parental Leave or a temporary absence and you continue to receive pay during the absence, you and your employer will continue to pay contributions based on the actual salary paid. If you are absent without pay, neither you or your employer will pay contributions for the period of unpaid leave. 

When you return to work, you will have the option to pay the contributions missed or any shortfall in contributions. If you opt to do so, your employer has discretion whether to pay their share. If they decline to pay, you may if you wish, pay the employers share. If you choose not to pay the missed contributions your benefits will be adjusted accordingly.

If you are not making any payments to the scheme, there is a maximum period of absence that applies before you will automatically become a leaver. This period of time will be dependent on the scheme that you are contributing to.  

To obtain more information on the relevant rules of your specific scheme, please select your scheme or give us a call and we will help.

Employees who only hold a Defined Contribution (DC) benefit

Annual Benefit Statements are provided to all members of the DC schemes. This includes active members who are currently employed and making contributions to the Scheme and past members who are no longer contributing but have a deferred benefit in the Scheme. The statement will be uploaded to the member’s own personal Benpal account for them to collect when it is convenient

Dependent on the Scheme, benefit statements are issued to members between January and August each year.

The DC benefit statement contains the following information:

• The member’s personal details and membership dates.
• The contributions credited to the member’s savings pot by both the member and the employer during the last Scheme year. The contributions will be those that have been received and invested prior to the statement date. For example, if the statement date is 1 October, the statement would not normally include the October contributions as these are usually received during November.  Any contributions received or invested after the year-end will be included in the next year’s statement.
• The value of the member's savings pot at the statement date (split between the investment funds)
• A Statutory Money Purchase Illustration (SMPI) of projected benefits. This is an illustration of the benefits that could be provided at the member's Selected Retirement Date assuming contributions continue at the current rate and uses specific assumptions for salary growth and investment return. Members should be aware that the value of investments may fall as well as rise and is not guaranteed.

Employees who have a Defined Benefit (DB) and a Defined Contribution (DC) benefit 

If any of your employees hold an active record which has both a Defined Benefit (DB) and a Defined Contribution (DC) element they will also receive a separate annual DB Benefit Statement. This will detail the DB benefits which the member is entitled to. The most recent benefit statement will be available on our DB Online system for the member to view. If the member has chosen to opt out of using the facility the statement will be issued by post if requested by the member.

The ‘Date Pensionable Service Commenced’ shown on the Defined Contribution (DC) statement will be the date the member joined the DC scheme and not the point at which they joined the scheme under the DB structure.

Employees who only hold a Defined Benefit (DB) in the scheme

The Annual Benefit Statement will be automatically uploaded to the DB Online system for active and paid up members to view when they want. Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. However, they can request one via DB Online, or contact us by telephone or email. The dates statements are uploaded vary dependent upon the scheme that the member is in.  Members will be notified that a new statement is online when they log into the system.  Where members have chosen not to use the facility they are able to request a copy of the statement to be sent to them.

The DB benefit statement contains the following information:

• The member’s personal details and membership dates.
• Yearly pension at the statement date
• Death benefits

If you need any further information in relation to the Annual Benefit Statements, please contact us. 

DB Online is the easy, simple and secure online facility which is provided to members of Defined Benefit (DB) schemes administered by TPT Retirement Solutions.

An account is created for a DB member and two separate letters are issued to them one with their account name and the other contains a unique temporary password.

Logging in to a pensions account allows a member to:

• Review and keep their personal details up to date.
• View their scheme record.
• Submit enquiries and request quotes.
• See their benefit statements.
• See their payslips and P60’s without having to wait for the post to be delivered; and be able to update their bank details if they receive a pension.

Defined Contribution members

Defined Contribution scheme members will have a charge deducted from your fund to cover the administration of the fund you are invested in.

Fund charges

If you are invested in a Target Date Fund there is a charge of 0.5% per annum which is deducted from your fund while it remains invested in the Scheme. 

Other fund expenses also apply up to a maximum of 0.01% a year.

The total charges deducted from your fund may be up to 0.51% each year and a transaction cost may also apply.

If you decide to invest in one of the following self-select funds:
• Socially Responsible Investment Fund
• Global Equity Fund
• Bond Fund
• Index Linked Gilts Fund
 the annual Charge and other fund expenses are 0.45% 

If you are invested in Ethical TDF Pre-1999 (if you joined the Ethical Fund before October 1999, you may have funds invested in a related Ethical TDF Pre 1999), the total charges, including the annual fee and other fund expenses, are up to 0.52%.

If you are invested in the Ethical TDF Post-1999 the total charges, including the annual fee and other fund expenses , are up to 0.72%.

If you are invested in Property Fund the total charges, including the annual fee and other fund expenses, are a total expense ratio of 1.02%, with a property expense ratio (PER) of  0.35%. The PER is the cost associated with the management and operation of the physical properties in the portfolio.

If you are invested in Cash Fund the total charges, including the annual fee and other fund expenses, are up to 0.46%.

If you are invested in Diversified Growth Fund the total charges, including the annual fee and other fund expenses, are up to 0.97%.

The fund value that you are quoted at any time will take into account any fees charged. Further information can be found ​here.

Transaction charges may also be payable in addition to the above, for example broker commission, stamp duty or the costs of buying and selling investments. These charges vary depending on a variety of factors including, the amount of money being switched on any one day.

Further details of the charges deducted from your fund are available on request.  If you need anything please contact us. 

Setting up a pension from a Defined Contributions fund

When you draw your benefits there may be charges for setting up a pension (or ‘annuity’) with another provider, as we do not pay pensions direct to members of Defined Contribution schemes.

Advice

You may want financial advice before taking your benefits and below are links to the government service (Pension Wise) and a site which allows you to search for financial advisors in your area:

www.pensionwise.gov.uk
www.unbiased.co.uk

We can also pass your details to the JLT Pension Decision Team who may be able to help you. There is a charge for this service.

Quotes for Defined Benefit scheme members

A charge would be applicable for additional quotations where a number of quotations have been provided over the previous 12 month period. Outlined below are the numbers of each quote you are allowed free of charge in a 12 month period and the fee applicable for a further quote.

• 2 Retirement quotes – each additional quote fee £100 
• 1 Benefit statement – each additional quote fee £100
• 1 Transfer quote – each additional quote fee £150 *  
• 1 Divorce quote – each additional quote fee £150 *
*Additional charges will apply if the transfer value is over £300,000

Fixed charges that cover our administration will apply if you divorce or end your civil partnership and your pension is shared with your former spouse or civil partner see:

- I’m going through a divorce, what are my options for dealing with pension’s rights?