DB Members

Deferred Members

A deferred member is a member of the Plan who has left Pensionable Employment, is entitled to benefits from the Plan and is not yet receiving retirement benefits from the Plan.

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You should complete a new Form at least every three years even if your wishes have not changed. Download a form.

You should complete a new form every three years even if your circumstances have not changed. Download a form.

A Partner is a person who

EITHER

  • is your registered civil partner at the date of your death

OR

  • was living with you in a relationship closely resembling marriage for at least twelve months prior to (and at the time of) your death, and
  • had been nominated by you on a Partner Nomination Form received by the Trustees, and
  • whose standard of living at least partly depended on your earnings or who at least partly supported you financially at the time of your death.

Change of Address

It is important that we are able to contact you. If you move house please notify us by writing to the administrator, Mercer.

A deferred pension is the pension you have earned up to the date you leave the Plan. The pension is payable from age 65.

Under current legislation, you may exchange part of your pension for a tax-free cash sum at retirement or to provide a pension for a dependant. You will also be entitled to the levelling option.

The GMP element of your pension will be increased as required by legislation. The remainder of your deferred pension will be increased up to the time you retire in line with any normal increases made to pensions in payment.

Once your deferred pension starts to be paid, it will continue to be increased in the same way as other pensions in payment.

The earliest age at which you can retire and apply to receive a pension is 55, unless you are retiring because of ill-health in which case you can retire at any age (provided that certain conditions are met). A reduction is made to your deferred benefit because you are receiving it early. The reduction is currently 4% for each year (1/3% for each month) that your retirement is before Normal Pension Age. This is not a penalty, the reduction simply allows for the fact that your pension will be paid longer. This reduction is reviewed periodically and is subject to change. Should this reduction result in your pension being below the minimum the Plan is required to pay unfortunately you will not be entitled to receive your pension at that time. The test could also restrict the amount of tax-free cash you could receive. If you are over age 55 and wish to receive your pension you should contact the Administrator who will tell you if this restriction applies to you.

The benefits payable on the death of a deferred member are a cash lump sum equal to the contributions that the deferred member made to the Plan (or the contributions that the deferred member would have made had he not been a member of NICwise) and pensions to your spouse/Civil Partner and dependant children.

  • Who receives any cash lump sum?

    The Trustees have discretion to pay cash sums payable on your death to such of your beneficiaries as they decide. Currently, this means that payments are tax-free. Possible beneficiaries include your spouse, children and other close relatives or dependants, anyone named as a beneficiary in your will, and other persons you have nominated in writing to the Trustees.

  • Why do I need to complete a Beneficiary Form?

    To enable the Trustees to be aware of your wishes as to the recipients of any cash sum payable on your death, it is important that you regularly (every 3 years) complete and return a Beneficiary Form, which can be obtained from the Administrator. The Trustees will decide to whom to pay any cash sum, taking into account information provided to them about your personal circumstances, including the information you provide on your Beneficiary Form.

  • Who is entitled to receive a pension?

    A pension may be paid to a spouse / registered civil partner, Partner (someone you were living with in a relationship closely resembling marriage, who had been nominated by you on a Partner Nomination Form received by the Trustees and who was financially interdependent) and/or a child up to age 23 (including step children and adopted children) who is dependent on you.

  • What amount of pension will my spouse receive?

    Your spouse will receive an immediate pension equivalent to the spouse's GMP in respect of service to 6 April 1997. The spouse's GMP is a widow's pension of at least half the husband's GMP at that time, or a widower's pension of at least half the wife's GMP earned after 5 April 1988.

    plus

    A pension of 1/3 of your deferred pension in excess of any GMP including any increases which have been awarded up to the date of your death.

  • Will my Partner receive a pension?

    If you have completed and returned a Partner Nomination Form, your Partner may receive an immediate pension of 1/3 of your deferred pension, including any increases awarded up to the date of your death. However, if you leave a spouse whom you married before 1 April 2002 and a Partner, your legal spouse will receive the part of the pension related to Pensionable Service before 1 April 2002 and your Partner will receive the balance. Partner Nomination Forms should be completed every three years.

  • Will my children receive a pension?

    Up to two eligible dependent children up to the age of 23 will receive immediate pensions of 1/6 of your deferred pension (including any increases awarded). These pensions may be doubled if no spouse’s or Partner’s pension is payable.

If you marry, remarry or nominate a Partner after leaving the Plan and your spouse or Partner is more than ten years younger than you their pension will be reduced by an amount decided by the Trustees - currently by 1/6% for each month of the age difference in excess of ten years.

You may transfer your pension rights from the Plan to another suitable pension arrangement. Transfer values are calculated in accordance with statutory requirements and actuarial advice, and represents the cash value of your current deferred benefits payable from the Plan.

You can request a statement of your transfer value from the Administrator, the transfer value will be guaranteed for 3 months. There is an administration charge for statements within twelve months of a previous statement.

The Administrator will provide the transfer details to a new employer who will be able to tell you what if any benefits can be provided for you in their scheme. If your new employer's scheme is not contracted-out of S2P an amount will be retained by the Plan in order to secure any minimum guarantees as a result of being contracted-out.

Transfers can normally be made at any time before age 64.

In cases of crime, fraud or negligence, your leaving service benefits may be reduced commensurate with any sums involved.

Mercer

If you have any questions about pensions please contact the pensions administrators:

Mitchells & Butlers Pensions
Mercer
4 Brindley Place
Birmingham
B1 2JQ

Telephone: 0845 850 0981
Email: mbplc@mercer.com

An image of the exterior of a Mitchells & Butlers pub.