When can I retire?

You can retire for pension purposes at anytime between age 55 and 75. When you retire, you can use the money in your account to buy a choice of benefits to suit you and your family.

What is my Minimum Pension Age?

All deferred members of the DC Section of the Plan have a minimum pension age of 55.

What are my benefits when I retire?

When you retire you can choose how to take your benefits. You can use your account to buy an annuity, otherwise known as a pension, or take up to 25% as a tax-free cash sum and use the balance to buy an annuity.

It may be possible, in agreement with the Company and Trustees, to use part of your account to buy an annuity and take a tax-free cash sum, whilst still continuing to work and make further contributions.

An annuity will provide you with a regular retirement income.

The size of your pension will depend on:

• the value of your account. The amount you have in retirement will depend on how much you have contributed to your account, how well your investments have performed and how long your account has been invested.
• your age at retirement. The younger you retire, the more expensive your annuity will be – because it is expected that you will be provided with an income over a longer period.
• the cost of buying an annuity when you retire. The price of annuities varies from time to time depending on market interest rates and the type of annuity that you buy.
• the amount of tax-free cash you choose to take.

You can choose to buy your annuity from a range of companies. This company (normally an insurance company) will then pay you a regular income for the rest of your life.

When making this decision it’s important to shop around for the best deal. When you are near to your retirement date, DC Choice will provide you with some options to help you make this decision. It may be a good idea to speak to an independent financial adviser to make sure you get the best possible deal.

Do the insurance companies make any charges?

There will usually be a one off charge when you purchase your annuity, this may be a fixed amount or based on the value of your fund. The charge will vary depending on the annuity provider you choose. This charge may be taken from your DC Choice fund.

The Trustees have arranged with Hargreaves Lansdown that they will provide details of various pension options available to you when you retire and arrange the purchase of your Annuity. Hargreaves Lansdown will make a fixed one-off charge for arranging this purchase of your annuity regardless of the value of your fund. (The agreed charge in the 2010/11 Plan year is £250.00 plus VAT.) You can access this service by contacting the DC Choice Helpline. In addition, and prior to incurring any charge from Hargreaves Lansdown, we recommend that you take independent financial advice.

What if I die?

DC Choice offers the comfort of knowing that your family will have some financial security if the worst happens.

If you die whilst a member of DC Choice and whilst employed by the Company before reaching 75, DC Choice will pay out a life assurance cash sum of 6 times your Benefit Pay, plus the money saved in your account.

You should ensure that you have completed a Beneficiary Form, stating who you would like to receive the money. In order to protect the tax-free status of the cash sum payment the Trustees are not bound by your wishes, but will always take them into account when making their decisions.

Please make sure you keep your Beneficary Form up to date especially if your circumstances change, for instance, if you marry or divorce, or have a child.

In some circumstances, part of your account may be used to provide a dependant’s pension on your death. Please ensure you complete the Dependant’s Form by nominating one or more dependant(s) and what proportion they should receive.