When you retire, your Retirement Account will be used to purchase the benefits of your choice. If you're unsure how to take your benefits please contact a financial advisor.
YOUR OPTIONS |
|||
Annuity | A bit at a time | Cash | |
Description | Purchase an income for life (pension) from a specialist company | Take your fund as cash lump sums or a regular amount each month | Take your whole fund as cash in one go |
Can I still take a tax free cash lump sum with this option? | Yes - up to 25% of the value of your fund | Yes - up to 25% of the value of your fund | Yes - up to 25% of the value of your fund |
Can I do this option within the Telefónica UK Pension Plan? | No - your fund must be used to purchase an annuity outside of the Plan | No - your fund must be used to purchase a flexible retirement product from a specialist company |
Yes |
For more information on your retirement options click here.
Spouse or Dependants Pension
If you joined the Telefónica Pension Plan before 1 March 2013 there may be an entitlement to a Spouse or Dependant's Pension. To find out more please speak to our administrators Standard Life click here to find their contact details.
To understand how any Spouse or Dependant Pension will be impacted by you stopping your Pension contributions or leaving the Plan please click here.
The Normal Pension Age under the Plan is age 60 so if you wish you can retire from age 60 and take your Plan benefits without reduction. However, you have the right to work beyond age 60.
The benefit you get will depend on the section of the final salary scheme you belonged to.
Former Section 2 members
For each year of pensionable service, and proportionately for part years, up until 28 February 2013 you will receive a pension of 1/60th (or 1.67%) of your Final Plan Salary.
If you opted out of final salary before it closed on 28 February 2013 and became a Section 2A member, then your accrual rate will have been 1/80th for the period of service from the date of opt out up until the final salary section closed on 28 February 2013.
Former Section 3 members
For each year of pensionable service, and proportionately for part years, up until 28 February 2013 you will receive a pension of 1/80th (or 1.25%) of your Final Plan Salary and a lump sum of 3/80th of your Final Plan Salary.
If you opted out of final salary before it closed on 28 February 2013 and became a Section 3A member, then you will have ceased to accrue 3/80th lump sum for the period of service from the date of opt out up until the final salary section closed on 28 February 2013.
The Plan Administrators will contact you six months before you reach age 60 with a pension quotation. At that time you will be asked whether you wish to take your benefits or postpone them until later. You'll also be given the option to take up to 25% of your benefits as a tax free cash lump sum in exchange for a reduction of your pension.
Spouse and Dependants Pension
To find out more on your entitlement to a Spouse or Dependant Pension please speak to our administrators LCP. Click here to find their contact details.
To understand how any Spouse or Dependant Pension is impacted by your stopping your Pension contributions or leaving the Plan please click here.
When you retire, your Retirement Account will be used to purchase the benefits of your choice.
OPTIONS |
|||
Annuity | A bit at a time | Cash | |
Description | Purchase an income for life (pension) from a specialist company | Take your fund as cash lump sums or a regular amount each month | Take your whole fund as cash in one go |
Can I still take a tax free cash lump sum with this option? | Yes - up to 25% of the value of your fund | Yes - up to 25% of the value of your fund | Yes - up to 25% of the value of your fund |
Can I do this option within the Telefónica UK Pension Plan? | No - your fund must be used to purchase an annuity outside of the Plan | No - your fund must be used to purchase a flexible retirement product from a specialist company |
Yes |
For more information on what your options are click here.