Can I transfer my pension to a high growth scheme?
There are an increasing number of companies claiming they can offer you high growth investment options outside of your current pension arrangement or help you access your pension as cash early. You need to be very careful if a company says they can do this for you. Often these arrangements can put your savings at unnecessary risk or result in tax charges and penalties of more than half the pot’s value and you won’t be told about this. If you’re concerned you should consider taking advice from an independent financial adviser. The Pension Regulator has more information about this here.
How do I report a death?
You may be entitled to a pension or a lump sum if your spouse, partner, or someone you were dependant on has passed away. Please do let us know here, if someone receiving a pension from us has died, or call us on 0800 122 5800 (from outside of the UK +44 20 3727 9850). We will need the member’s name, address, National Insurance number, date of birth and date of death. It would help if you know the member’s membership number and scheme name. Please let us know your telephone number, email address and relationship with the member. We will then be in touch about the next steps.
I'm getting divorced, what should I do?
If you get divorced or dissolve a civil partnership, the courts need to decide how to divide your assets between you and your former spouse or civil partner. When they do this, they’ll take the value of your pension benefits into account. Please get in touch here to get details of your pension benefits for divorce proceedings.
Upon my death, what happens to my pension?
The RPF provides a range of benefits upon your death. These can be to your spouse or civil partner, or if you don’t have a spouse or civil partner, to someone who was financially dependent on you. The benefits payable can differ across the membership, and what we have outlined below is the benefits which are applicable to most members. However, for some members, your spouse, civil partner or dependent may be due different benefits, which could be less or more.
When you die, the RPF will provide your spouse, civil partner or dependant with a pension for the rest of their life which for most members will be about 50% of your pension (before any Pension Commencement Lump Sum if you have already retired).
If you are currently considering retirement, this estimated dependant’s pension is provided within the options outlined in the retirement quotation. The estimated pension will then normally increase in line with the member’s pension. When the dependant’s pension comes into payment it will then increase every year in line with the Fund rules.
If you die less than five years after your pension starts, a cash sum equal to the balance of pension payments you would have received to the end of that five-year period will normally be payable
Please contact us for further information on the options noted above or for an estimate of the pension that would be due to your spouse or civil partner on your death before or after retirement. Estimates of partner’s pensions are calculated individually to ensure that any non-standard benefits attached to the member’s benefit are taken into account as appropriate. We aim to provide the estimate to you within 5-10 working days.
When can I retire?
For most schemes, the minimum age you can start taking a pension in the UK is currently 55, rising to 57 from 6 April 2028. This is set by the government. However, the RPF has a protected minimum retirement age of 50. Retirement before ‘Normal Retirement Age’, which for most members is 62, will normally result in a reduced pension. There are exceptions due to ill health.
What is a Transfer Quotation?
If you are considering transferring your benefits from the Fund, you can receive a quotation of the lump sum equivalent of your benefits in the Fund (called a “Cash Equivalent Transfer Value” or “CETV”) to transfer to another pension scheme from us. Transferring your benefits elsewhere will extinguish your benefits in the Fund.
A CETV is a cash sum which is the estimated value of your benefits at this time. This cash sum would be provided in exchange for you giving up your Fund benefits This includes benefits on retirement and on death which may be payable to your spouse, civil partner, or dependants.
When considering whether to transfer your benefits out of the Fund, it is recommended that you take independent financial advice. It is a legal requirement for you to take independent financial advice before transferring out of the Fund if your transfer value (excluding Additional Voluntary Contributions “AVCs”) is greater than £30,000. Go to either https://www.fca.org.uk/register or https://www.moneyhelper.org.uk for help finding an independent financial adviser near you.
The Financial Conduct Authority (‘FCA’) has issued guidance on transfers out of ‘defined benefit’ pension arrangements (such as this Fund). The FCA is clear that when advising on such transfers, advisers should start from the position that a transfer is likely to be unsuitable for most members. An adviser should only recommend transferring out of the Fund if it considers your personal circumstances make it a more appropriate option.
Why can my Cash Equivalent Transfer Value (CETV) fluctuate?
A CETV represents the amount of money needed now by the Fund, in today’s monetary terms, which is expected to be sufficient to meet all your pension payments from the Fund in the future. This includes benefits on retirement and on death which may be payable to your spouse, civil partner, or dependants.
CETVs are calculated in accordance with legislation and the Fund’s Trust Deed and Rules. In particular, legislation requires the Trustee to determine the assumptions to be used based on advice from the Scheme Actuary and for this method to be based on the best estimate of the expected cost of providing the member’s benefits in the scheme at the date of calculation.
The key factors affecting how the value of a CETV may change if calculated at different dates are as follows:
1. The estimate for future price inflation:
a. If the estimate for future price inflation decreases, the Trustee expect to pay a lower annual pension in the future which results in a decrease in the CETV.
b. If the estimate for future price inflation increases, the Trustee expect to pay a higher annual pension in the future which results in an increase in the CETV.
2. The expected future investment returns:
a. If the expected future investment returns decrease, this increases the expected amount of money needed at the date of calculation to meet the benefits payable in the future which increases the CETV.
b. If the expected future investment returns increase, this decreases the expected amount of money needed at the date of calculation to meet the benefits payable in the future which decreases the CETV.
3. As a member gets closer to their Normal Retirement Date (the date at which you are expected to retire as defined in the Fund’s Rules), the shorter period of discounting results in an increase in the CETV.
The above factors mean that when a CETV is calculated at different dates, the value of the CETV can go up or down. Please get in touch here if you have any concerns about a change in your CETV amount.
