Your retirement balance options and how to apply
There are a number of different choices you can make about when you take your retirement balance, and how you decide to use it. Select from the topics below to see a summary of your options, along with details of how to apply for your benefits when you are ready to do so.
When to retire
There are a number of different times you can choose to use your retirement balance and take your benefits.
Normal retirement
The ‘normal retirement date’ (NRD) in the RBP is your 65th birthday.
This is when you can use your retirement balance without any reductions.
Early retirement
If you are still paying into the RBP, then you may be able to retire from age 55, before you reach your NRD. This is known as Early Retirement.
In this case your retirement balance will be reduced to reflect that it is being paid early and benefits are likely to be paid for a longer period of time. The size of reduction will depend on your age when you retire. You can find the reduction rates, known as early retirement factors, in your Member Guide. These are set by the Scheme Actuary and are subject to change at any time.
If you are considering taking your benefits early due to ill-health, different rules will apply. Please see the change in circumstances page for details.
Late retirement
If your employment continues after your NRD, you may continue to pay into the RBP.
In this case your retirement balance will be payable at the date you leave employment (being after NRD) and will be increased to take account of the fact that it is being paid ‘late’.
Ways to use your retirement balance
There are different ways you can use your retirement balance to provide a package of benefits. A summary of these is shown below.
You can read more in your Member Guide.
The RBP administrator, Broadstone, will also give you information about your options as you get closer to your NRD.
If you are unsure as to what the best option is for you, we strongly recommend that you take Independent Financial Advice. There is more information on how to do this on the help and advice page.
A tax free cash lump sum
You can take up to 25% of the value of your retirement balance (subject to certain government limits) as a tax-free, cash lump sum. You can then use the rest to purchase a pension either within the Scheme or from another provider as shown in the options below.
A Scheme pension
A pension (annuity) from another provider – the Scheme Open Market Option (OMO)
An Uncrystallised Funds Pension Lump Sum (UFPLS)
Transferring your full fund out of the RBP
You may decide to transfer your entire retirement balance out of the Scheme to another provider. This could give you access to options not currently provided by the RBP, such as flexi-access drawdown.
Flexi-access drawdown can let you access your pension savings whenever you want or need to. Your savings remain invested until you access them. They are generally invested in a way designed to provide an ongoing retirement income.
You can read more about this process on the transfers page.
Getting financial advice
Origen Financial Services Limited (Origen) are available to provide you with financial advice about taking your benefits from the Scheme, if you wish.
The Uniper Trustees will pay some of the cost associated with this service. However, you can only access this paid-for advice service once (you could repeat this process, but it would be at your own cost).
Origen are independent from the Scheme and are authorised and regulated by the Financial Conduct Authority (FCA).
You can find more information about Origen, and how to access the service, in your retirement pack or by contacting the RBP administrator, Broadstone. Your retirement pack will be provided to you by Broadstone when you start the retirement process. See the applying for my pension details below.
There is no obligation to use Origen, and you may wish to take advice from an alternative FCA authorised adviser. You can find a list of Independent Financial Advisers in your local area at www.unbiased.co.uk.
If you choose to take advice from an alternative adviser, then the Uniper Trustees will not pay any of the costs incurred and you will not benefit from the preferential rates that have been negotiated by the Trustees on your behalf.
Neither the Trustees, the RBP administrator Broadstone, or Uniper can provide members with financial advice. They can give you factual information but not advice.
See the help and advice page for more information.
Applying to take your retirement balance
You can find a step-by-step guide to the retirement process below…
1. Make sure you understand your options before you apply to take your retirement balance
Before applying to take your retirement balance please make sure you understand all the options available to you, particularly when you can retire and the different ways you can take your balance.
You can find out more information on the options available to you above and in your Member Guide.
You can also request estimates in your myESPS account and by contacting the RBP administrator, Broadstone, to help you understand the likely value of your benefits.
If you are unsure as to what the best option is for you, we strongly recommend you take Independent Financial Advice. There is more information on how to do this above and on the help and advice page.
2. Tell HR about your chosen retirement date
To begin the retirement process, you need to contact HR and let them know when you want to take your pension benefits and request a formal retirement quote.
You should get in touch with HR at least three months before you want your benefits to be paid.
3. Receive and complete the necessary paperwork
Once HR has passed on your information, the RBP administrator, Broadstone, will process your request and will send you a retirement pack. This is usually done approximately six to eight weeks before your retirement date.
Your retirement pack will include details of your options and the forms you need to complete.
You must complete and return the forms, and any other documentation requested, to Broadstone, at least one month before your chosen retirement date.
If you are taking the Open Market Option (see ways to use your retirement balance above) then you will need to include the details of your chosen provider at this stage.
4. How your benefits will be paid
If you have chosen a tax-free lump sum, this should be paid on, or around, your retirement date.
An Uncrystallised Funds Pension Lump Sum will be paid through the next monthly payroll.
If you have chosen to convert any of your retirement balance to a Scheme pension, we will pay this in monthly instalments around day 24 of each month. This will start from the first pension payment cycle following your retirement date. Any arrears from your retirement date will also be included in this first instalment. You can continue to contact Broadstone with any questions you may have about your pension and you can find out more in the pension payments area of this website.
If you have chosen to buy an annuity from an insurance company (OMO) or to transfer to another provider, then Broadstone will transfer your retirement balance to them. That means you will no longer be a member of the Scheme, and the new provider will be responsible for paying your pension and will deal with any enquiries you may have.
If you have a ‘Scheme Pays’ debit or debits, due to the Trustee paying any Annual Allowance tax charges on your behalf, the outstanding amount will be deducted from your retirement balance before any payments can be made to you or transferred to a new provider. You can find out more about this on the Scheme Pays and tax allowances pages.