What other benefits are there?

The DC Section provides a fund for you at your retirement which is used to buy your pension benefits. It is contracted-in to the State Second Pension, which means that any benefits paid are on top of your State pension benefits (Basic State Pension and the State Second Pension).

Benefits

• A pension for life based on the value of your Personal Account.
• The chance to take part of your account as a cash sum (tax-free under current law).
• The option of:
  • using part of your account to provide benefits - you do not have to use the full value all at once
  • taking some or all of your benefits while working for the Company (as long as you meet certain conditions)
  • keeping your Personal Account in the DC Section or transferring the value to another scheme if you leave before retirement.

Protection

• If you die whilst an employee member of the DC Section, a tax-free lump sum of 4 times your Pensionable Pay will be payable, plus the value of that part of your Personal Account built up from your own Contributions.
• In addition a pension for your Spouse, Civil Partner or Dependants will be payable, bought with a sum based on 4 times your Pensionable Pay.

Moving on

• If you leave the Company or opt out of membership before retirement, you will usually be able to take all or part of the fund with you to your new employer’s or personal pension scheme.

Finding out more
Have a look through the Members’ guide and find out more about the potential benefits of membership.