Understanding your benefits.

Your deferred pension

When the FKI Group Pension Scheme closed, or if you left before it did so, you were told how much pension you had built up in that Scheme up to the time your pensionable service ended. That amount will continue to increase within the Bridon Group (2013) Pension Scheme between the date your pensionable service ended and your Normal Retirement Date.

At your Normal Retirement Date, you’re entitled to an annual pension payable for life. You can look at how much pension you can expect at your Normal Retirement Date in My Pocket Pension. You can also look at how the amount of pension might change if you decide to retire before or after your Normal Retirement Date.

Retiring early, late or through ill health

Different rules apply if you retire before or after your Normal Retirement Date, or due to ill health. Please refer to the Scheme booklet for a full explanation.

Lump Sum

On retirement you can normally take up to 25% of your benefits as a lump sum, although in certain circumstances this may be higher. Shortly before your Normal Retirement Date, you’ll be notified of the maximum cash sum available and the remaining pension.

Small Pensions

If the value of your pension is sufficiently small, it may be possible to receive a cash sum rather than a pension. You’ll be notified if this option is available to you. Accepting it means you’ll have no further entitlement from the Scheme.

Death Benefit Entitlement

Under the Scheme rules, a cash sum is payable if you die while a deferred member or in your first five years of retirement. A pension may also be payable to your spouse and/or dependants.

Expression of Wish

The Trustee has the final decision over who receives the cash sum. To help the Trustee decide, complete an Expression of Wish form telling them who you’d like to receive the payment. You can complete or update who you nominate in My Pocket Pension.

Death of a deferred member

If you die before your pension becomes payable, a cash sum is paid equal to 10 times the deferred pension calculated at the date of leaving, plus any Additional Voluntary Contributions. A spouse’s pension is also payable for life from the date of death.

If you don’t leave a spouse, an equivalent pension may, at the Trustee’s discretion, be paid to your dependants.

Please refer to the Scheme booklet for a full explanation.

Death of a pensioner

If you die after your pension starts, a spouse’s pension is payable for life from the date of your death. The amount of the pension is one half of your own pension at the date of your retirement (before giving up part of your pension for a cash sum) but increased from that date on the same basis as your own pension.

If you do not leave a spouse, a pension of the same amount may, at the Trustee’s discretion, be paid to your dependants.

Please refer to the Scheme booklet for a full explanation.

Five-Year Guarantee

If you die before your pension has been paid for five years, your beneficiaries will be entitled to receive a cash sum equal to the outstanding balance of the monthly payments up to a maximum of 60 (five years’ worth of monthly payments).

Inheritance Tax

From 6 April 2027, lump sum pension death benefits will potentially be liable for Inheritance Tax. Benefits paid to a spouse or civil partner remain exempt. For a fuller explanation contact the administrator.

Increases to your pension

Your pension is increased each year after retirement. Your spouse’s or dependant’s pension is also increased each year.

Different parts of your pension will be increased at different rates.

Please refer to the Scheme booklet for a full explanation.

You will receive a letter each year to tell you when your pension has increased and your new payment amount.