BPAS deferred members

If you are no longer an active contributing member of BPAS, your benefits earned whilst in the scheme will be deferred until you choose to retire.

Your deferred benefits will increase each complete year from your date of leaving to your retirement date, in line with the ‘Government Revaluation Orders’.

Some aspects of pensions are complex and you may be presented with difficult decisions to make. The Pensions Office can provide information about the scheme and the options available to you but they cannot provide financial advice. We recommend that those who need financial advice contact an independent financial adviser.

Managing your pension

I want to transfer my benefits

If you are wanting to transfer your benefits to another pension arrangement, you will need to speak to an independent financial adviser as you will be transferring a defined benefit arrangement. Independent financial advice is a legal requirement if your transfer value is over £30,000.

Contact the pensions office for a transfer quotation.

Life events

  • To update your nominated beneficiaries, please update an Expression of Wish form and send to the pensions office via email.

  • In the event that you died before claiming your retirement benefits, depending upon individual circumstances, the following benefits would be payable:
  • A refund of contributions that you paid into the scheme

  • A dependents pension payable to your spouse or partner (the latter subject to the Trustees agreement).

I want to retire

  • Contact the pensions office for a quotation ideally three months before your intended retirement date. You will receive this quotation along with the option form, which you need to complete to indicate your preference and return. Confirmation will be issued once your retirement has been processed confirming the final retirement figures to your institution. 
  • Early Retirement: The Scheme normal retirement date is the end of the month in which you attain age 65, but you may receive your benefits at any time from age 60 onwards without an early retirement reduction being applied. Retirement before the age of 60, benefits are actuarially reduced, the reduction deduction dependent upon your age at retirement. Retirement before the age of 60 is at the discretion of the Scheme Trustees.

  • Late Retirement: You can retire after the age of 65. Your benefits at age 65 will be increased by a late retirement factor, based on your age at late retirement. Pension increases will also be applied depending upon your date of late retirement.

  • Ill Health Retirement: There is a possibility that you are able to retire on the grounds of ill health. Please contact the pensions office for further information.

PLEASE NOTE:

In projecting future benefits an estimated rate of revaluation will be used. The benefits, which will be paid at retirement, will depend on the actual rates of revaluation applicable between your date of leaving and retirement.

Retirement information

Tax free cash lump sum

A number of retirement options will be issued to you, including an option to commute part of your pension for a tax free cash lump sum, based on the scheme rules and the maximum permitted by HMR&C. You may take a smaller cash sum and a larger pension if you wish.

If you have paid AVCs you will have some additional choices to make. You can choose whether to use your AVC fund as a cash payment or to purchase additional pension. AVC benefits taken at retirement can potentially provide you with a tax free cash lump sum within your HMR&C maximum limit. It is suggested you take independent financial advice in order to choose the best option for your circumstance. 

Your Tax Free Cash sum will be paid directly into your bank account via BACS transfer within two weeks of retirement.

Pension payments

The monthly pension will be paid directly into your bank account towards the end of each month and will be paid on the penultimate working day of the month following your retirement. The pension is paid monthly, in arrears. Pay advice slips, will be issued for the first month of your retirement and for the months of March, April and May each year. Should your net pay figure differ by £5.00 or more from the previous month’s net figure, a further payslip will be issued.

Your pension increases in line with the ‘Government Pension Increase Orders’ each April. Details of these increase will be issued to you at that time.

Other useful information

I have a deferred AVC arrangement

If you have paid AVCs you will have some additional choices to make. You can choose whether to use your AVC fund as a cash payment or to purchase additional pension.  AVC benefits taken at retirement can potentially provide you with a tax free cash lump sum within your HMR&C maximum limit.  It is suggested you take independent financial advice in order to choose the best option for your circumstance.

AVC statements are issued each year by Aviva, the AVC administrator for the BPAS scheme. 

Keeping your details up to date

In order that we can keep you aware of any current up-dates to the pension scheme, it is important that you keep us informed on any changes to your correspondence details.  Please complete the following ‘Change of Address’ form and send to the pensions office.