Taking your pension

You have a number of options around taking your pension, specifically when you would like to take it and how much you would like to take as a lump sum.

The Pensions Department will automatically contact you with information about your retirement options in the 6-8 weeks before your Normal Retirement Age (NRA), which is 65 for most members.

When can I start to receive my deferred pension?

Early retirement (in good health)

Your pension will be calculated in the same way as for NRA, but with a reduction applied to take into account the fact that you will be receiving pension benefits sooner (and therefore it is expected that your pension will be paid out for longer).

The amount of the reduction is bigger the earlier you retire.

If you would like an early retirement quote, please let the Pensions Department know.

Minimum Early Retirement Age

The law currently allows early retirement pensions to be paid at any time from age 55 (for members in good health). However, the government intends to increase this minimum age to 57 in 2028 when the State Retirement Age increases to 67 (maintaining the 10 year gap between minimum pension age and State pension age).

With the Trustees’ and Company’s consent, a pension may be paid:

At any time

if you are unwell and satisfy the Scheme’s definition of incapacity;

From age 55

if you are unwell and satisfy the Scheme’s definition of incapacity;

Please note, if you take your benefits early they will usually be reduced.

Retiring at Normal Retirement Age

If you retire from the Scheme at your NRA you will receive a pension based on how long you were an active member of the Scheme and your earnings during that time.

Ill Health Pension

If you are unwell, and the Trustees agree that you meet the Scheme’s definition of ill health, you may be able to take your pension from the Scheme before age 55.

If you think this may apply to you, please contact the Pensions Department.

Late Retirement

You can, with the agreement of the Trustees and the Company, postpone the payment of your pension up to the earlier of you ceasing to work or your 70th birthday. Your pension would then be increased to take into account the fact that it has been paid later than expected.

If you would like more information on this, please contact the Pensions Department.

How is my pension calculated?

Case Study

Mary takes a pension from the Scheme at age 65, having built up benefits for 10 years. Her Final Pensionable earnings were £25,000 and the rate at which she built up benefits was 1/60.

Her pension would therefore be:

Rate at which pension builds up, known as accrual rate


Years building up benefits in the Scheme

10 years

Final Pensionable earnings


= Pension of £4,166.67 p.a.

How your pension is paid

Your pension is payable from the first day of your retirement (as notified to us) and is paid monthly in advance into your bank account.

So, for example, your pension for the whole of September will be paid into your bank account on 1st September.

Can I take a cash lump sum on retirement?

When you retire, you can usually swap some of your annual pension for a cash sum of 25% of the value of benefits which, under current legislation, is tax free. If you decide to take this cash sum , then your annual pension will be reduced. We will include these options when we contact you as you approach NRA.

Using Mary as an example this would result in:

A lump sum of


A reduced pension of

£2,896.34 p.a.

You do not have to take the maximum lump sum at retirement and you can choose to take a smaller amount than the 25%. This would result in extra regular pension income.