If you’re a deferred member (not making active contributions) of the Telefónica Pension Plan and you’re an ex-final salary (DB, Defined Benefit) member of the Plan then your savings will be re-valued to the date you retire.
Section 3 members (closed to new members but was open to employee joining before March 1986).
Your pension and cash lump sum at your retirement date will be the amount at leaving increased in line with the pension review orders over the period between leaving Pensionable Service and your retirement date. The pension review orders are set each year by government and are based on price inflation.
Section 2 members (closed to new member but was open to new employees joining between March 1986 and April 2001).
Your Pension at your retirement date will be the amount at leaving increased as follows:
- Pension earned before 6 April 2009 will be re-valued broadly in line with the increase (if any) in prices over the period from leaving Pensionable Service, but the total increase is capped at 5% for each year over the period.
- Pension earned after 5 April 2009 will be re-valued in line with the increase (if any) in prices over the period from leaving Pensionable Service, but the total increase is capped at 2.5% for each year over the period.
Your pension may include what is known as a ‘Guaranteed Minimum Pension’ and this will increase differently to that described above. If you would like further information please contact the Plans Administrators LCP by clicking here.