Past employees

The value of your Core Funds will determine the benefits available at retirement, but the ‘Pensions Underpin’ means the Plan will provide a pension that is at least as high as the Pensions Underpin at retirement.

The Pensions Underpin is calculated as:

1/80th x Final Pensionable Pay x Pensionable Service up to the earlier of 31 May 2004 or date of exit*.

*exit means leaving employment or opting-out of the Plan

The Pensions underpin will increase from your date of exit to your date of retirement to protect against inflation.

The Pensions Underpin will increase in different ways, depending on when the pension was built up.

Guaranteed Minimum Pension earned up to 5 April 1997 will increase at a fixed rate each year until retirement. The remainder of the Pensions Underpin will increase in line with CPI inflation each year until retirement, capped at 5% pa.

The Pensions Underpin will also increase after retirement (see the Retired section for more information).

The Retirement Benefits section explains how your Core Funds and Pensions Underpin interact at retirement.