Retirement planning
Your retirement options explained
Your guide to the retirement options available from the Manweb Group of the Electricity Supply Pension Scheme. It provides information about how each of the options work and the things you should consider before making your choice.
What are my options when I retire?
You’ll have various options about how and when you want to take your retirement benefits. For example, you could:
Exchange some of your annual pension for a tax-free cash lump sum at retirement (see below).
Exchange part of your pension that increases in retirement for a higher pension that doesn’t increase (see ‘How will my pension increase?’ below).
Transfer your benefits out of the Group at retirement so you can access them in a different way (for example, all as cash or through a ‘drawdown’ facility). You’d need to take independent financial advice before doing this.
Full details of your options will be provided in your retirement pack as you approach normal pension age.
Taking a cash lump sum at retirement
The Group automatically provides you with a cash lump sum, but you can choose to exchange some of your pension for a higher tax-free cash lump sum at retirement.
Cash lump sums up to 25% of the total value of your retirement benefits, as worked out by HMRC, are usually tax-free (subject to a limit of £268,275 across all pension schemes unless you have a form of Lifetime Allowance protection). This amount will be shown in your retirement pack as you approach normal pension age.
When can I retire?
Typically, members retire at their normal pension age. However, depending on your circumstances, you may be able to retire before or after your normal pension age.
Early retirement – at your own request
The earliest age you can retire is 55 (increasing to 57 in April 2028). Your annual pension will be reduced because it’s being paid early and so is expected to be paid for a longer period. The earlier you retire, the more your pension will be reduced.
Please note If you’re male and joined the Group before April 1988, your annual pension will be reduced if you retire before age 63 (even though your normal pension age is 60).
Early retirement – requested by the Company
The Company may ask you to retire early due to reorganisation or redundancy. The exact terms of your retirement, and any early retirement pension you receive as a result, will depend on when you left your role with the Company, when you’re planning to retire, and the terms of your redundancy agreement with the Company.
Normally, you can receive an immediate unreduced annual pension if you’re aged 50 or over (if you joined the Group before 6 April 2006), and in all other cases aged 55 or over (and this will continue to apply from 2028), but this is case dependent.
Early retirement – due to ill health
If you meet HMRC’s ill health requirements and the Company’s Occupational Health Adviser confirms that you can’t carry out any work you may be reasonably expected to do given your previous role in the Company due to ill health or incapacity, you may be entitled to an immediate annual pension without reduction.
If you’re still in active service, this will be worked out based on your pensionable salary when you retire and the pensionable service you would’ve completed at normal pension age. If you’ve already left the Company, this will be worked out as your deferred pension revalued to date of early retirement.
Example You retire from active service at age 45 due to ill health, with a pensionable salary of £25,000 after completing 12 years of pensionable service. If you’d stayed in the Group until your normal pension age (63), you would’ve completed 30 years of pensionable service.
Pension = 1/80 x £25,000 = £9,375 a year
Plus
Cash sum = 3 x £9,375 = £28,125
You may need the Company’s agreement to retire early due to ill health.
If your ill health is so serious that you’re unlikely to live for more than one year, you may be able to take all your pension benefits as a single lump sum instead of a pension.
Late retirement
You can continue building up benefits in the Group for as long as you’re working, up until age 75. If you choose this option, you’ll continue paying into the Group and building up pensionable service. You’ll also remain covered for life assurance (see ‘What happens to my retirement benefits when I die?’).
If you choose to stop paying contributions and leave pensionable service, you may still delay your retirement, and you’ll be entitled to an increased pension reflecting the amount of time you delayed taking the pension.
How will my pension increase?
Your pension is paid directly to your bank account in monthly instalments on the first working day after the 21st of each month. Once you’re receiving your pension, you can view your monthly payslips by logging into your OneView account.
Your pension is increased each year to help it keep pace with rising prices:
Pension above the Guaranteed Minimum Pension (GMP) – increases on 1 April each year with the Retail Prices Index (RPI) over the 12 months to the previous 30 September.
The Company may decide to limit the increase to 5% in any given year if RPI is more than 5%.
GMP built up from 6 April 1988 – increases each year with the Consumer Price Index (CPI) up to 3% a year.
For further information about GMP, please visit scottishpowerpensions.co.uk
Pension increase exchange
At retirement, you may have the choice to exchange part of your pension that increases in retirement for a higher pension that doesn’t increase. This part of your pension is called your ‘Exchangeable Pension’.
Your Exchangeable Pension is the amount of pension above the GMP built up before 6 April 1997. Full details of this option will be provided in your retirement pack as you approach normal pension age.
How the Group is managed
Legal information The Group is managed by the Directors of Manweb Corporate Pension Trustee Limited (the “Trustee”). It’s their duty to run the Group in the best interests of you and your dependants. Some of the Directors are appointed by the Company and some are appointed by members.
The Trustee runs the Group in accordance with current pension laws and a formal document which records the governance of, and benefits provided by, the Group, called the “Trust Deed and Rules”. This guide gives you a summary of the Group benefits, but if there are any differences then the Trust Deed and Rules and pension laws will override this summary.
All relevant Group documents are held on OneView. The Trustee Report and Accounts can be provided on request.
Data protection The Trustee needs to hold personal data about you and your dependants to be able to run the Group. The Group’s Privacy Information Notice can be found on OneView – this includes details of our advisers and service providers.
OneView If you can’t find what you’re looking for here, go to OneView at aptiaoneview.co.uk/manweb.
OneView is your personal member portal, giving you 24/7 access to real-time information about your retirement benefits. Go to OneView if you need to:
- Update your personal details, such as your address or email.
- Nominate or update your dependants or beneficiaries and their contact details.
- Change the bank that your pension is paid into.
Watch this video to find out how to register and what you can do on OneView.
Help with problems We always aim to provide a high standard of service to you. Any day-to-day queries about the Group should be referred to the Contact Aptia Pensions website or telephone 0330 808 1525.
However, if you experience any problems that Aptia can’t resolve for you, the Trustee has an ‘Internal Dispute Resolution Procedure’ which is designed to deal with any complaints.
Please contact:
Claire Dunne - Pension Projects and Services Manager
Email - pensions@scottishpower.com
Address - ScottishPower Headquarters, 11th Floor, 320 St. Vincent Street, Glasgow, G2 5AD
Other useful contacts
Money & Pensions Service The Money & Pensions Service is available at any time to give you free information and guidance on pensions. It can also help anyone who has a problem, complaint or dispute with their occupational or personal pension scheme.
Email: contact@maps.org.uk
Address: Borough Hall, Cauldwell Street, Bedford, MK42 9AB
The Pensions Ombudsman The Pensions Ombudsman investigates and decides complaints and disputes of facts or law in relation to pension schemes. The Ombudsman is completely independent and there is no charge for this service.
Email: enquiries@pensions-ombudsman.org.uk
Address: 10 South Colonnade, Canary Wharf, London, E14 4PU
The Pensions Regulator The Pensions Regulator is the regulator of work-based pension schemes in the UK. The Pensions Regulator is able to intervene in the running of schemes where trustees, employers or professional advisers have failed in their duties. Its priority is to work with schemes to identify and reduce any risk to members’ benefits.
Online: thepensionsregulator.gov.uk
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