Defined Benefit Section
The DB Section of the Lloyd's Register Superannuation Fund Association (LRSFA or the Scheme) closed to future accrual 1 October 2010. This means it is no longer possible to build up benefits in the DB Section of the LRSFA .
If you have benefits in the DB Section of the Scheme, you'll find important information about them in this section of the website — including how you can access them when you retire.
Retirement checklist
If you're close to retiring, you can use the checklist below to make sure that you're retirement ready:
- Request a retirement quotation from XPS Pensions.
- If you have any DC or Additional Employee Contribution benefits, you'll also need to decide how you access them — check the market for the options that best suit your needs.*
- Review your retirement quotation — make sure all the details are correct and let XPS Pensions know if they aren't.
- Check you understand your quotation. If you need help understanding it, you can talk to an Independent Financial Adviser (IFA) — you can find one on MoneyHelper.
- Let your line manager know your planned retirement date so they can organise approval to put your Scheme pension into payment.
- Let XPS Pensions know how you'd like to access your Scheme benefits at least 12 weeks before you want to retire.
- Send copies of quotations or recent benefit statements for pensions from any other employers you've worked for to XPS Pensions so they can calculate your benefits against the Lifetime Allowance.
* If you use your fund on the open market this may require a due diligence process to be triggered which could add 6-8 weeks to the process. So it is important to review your options and confirm your decision as early as possible to ensure everything is in place for your retirement date or soon after.
If you have benefits in both the DB and DC Sections, including any Additional Employee Contributions, XPS Pensions will provide you with a quotation that gives you two options. You can exchange part of your pension for a lump sum. Your pension would then be reduced by an amount determined by the Actuary, but this would not affect any pension payable to your spouse if you die (see Spouse's and Children's pensions below). This lump sum can be paid free of tax in the United Kingdom and would be paid directly into your bank account on or shortly after your retirement date. Your pension payments are paid on the 20th of each month for that month, i.e. 20th November covers 1st — 30th November.
The lump sum quoted is an enhanced amount based on the maximum allowed by the Inland Revenue — this is currently 25% of the capital value of your benefits. If you'd prefer to take a smaller lump sum, we can provide you with an adjusted quotation. If you've already taken tax-free cash from any previous pension arrangement, XPS Pensions will take this into account. In a small number of cases, the tax-free sum you're able to take from the Scheme may have to be reduced.
Alternatively, you could use your DC / Additional Employee Contribution fund value to take as a lump sum without reducing your pension (up to the maximum lump sum allowed).
Other DB benefits
Other benefits may be available if you die as an active LRSFA member, such as spouse's and children's pensions.
Spouse's and Children's pensions
If you remained an active member of LRSFA after 30 September 2010, your dependants will benefit from a guarantee on the minimum level of spouse's and children's pensions payable.
Your spouse may receive a pension based on the greater of:
A)
- DB Section — A spouse's pension of two-thirds of your deferred DB pension as at 30 September 2010, with increases to the date of your death
- PLUS
- DC Section — An annuity purchased for your spouse from your DC fund built up from 1 October 2010
OR
B)
- Guaranteed spouse's pension — The death benefits that would have been payable had you died in service on 30 September 2010. These are based on your final pensionable salary at 30 September 2010 and service up to your Normal Retirement Date.