Your benefit options and how to apply
There are a number of different choices you can make about when you take your benefits, and how you decide to use them. Select from the topics below to see a summary of your options, along with details of how to apply for your pension when you are ready to do so.
When to retire
There are a number of different times you can choose to start taking your deferred benefits.
Normal Retirement
The ‘normal pension age’ (NPA) for the Final Salary sections of the Scheme is usually age 63.
This is when your retirement benefits can be paid without any reductions.
The NPA may be earlier for some members, including those who joined before 1 April 1988. Please check your Member Guide for more information.
Early Retirement
You may be able to start taking your pension before you reach your normal pension age. This is known as Early Retirement.
In this case your benefits will be reduced because they are likely to be paid for a longer period.
You may be able to retire early if:
- you are at least the Normal Minimum Pension Age (NMPA), and
- you have at least two years’ pensionable service
These rules may vary depending on your benefit category in the ESPS.
The NMPA is currently age 55, increasing to age 57 from April 2028. However, some individuals may have specific circumstances which means their minimum age is lower. Please refer to your Member Guide for further information.
Different rules may apply if you retire early for reasons other than Early Retirement, such as:
- Redundancy - these rules vary based on circumstances. These should have been clearly communicated to you at the point of leaving and in any associated statements you receive about your pension
- Ill health - please check the change in circumstances web page for details
What pension benefits you will get
When you take your pension benefits, you may get:
- An annual pension for life and
- A cash lump sum (depending on the rules for your benefit category)
You can read more about how these are calculated in your Member Guide and on the your benefits web page.
You may be able to choose to take up to 25% of the value of your pension benefits as a tax-free cash lump sum, regardless of your category in the Scheme, subject to certain government limits. There is more about this on the tax allowances page.
If you have a ‘Scheme Pays’ debit, due to the Trustee paying any Annual Allowance tax charges on your behalf, the outstanding amount must be deducted from your benefits before they can be paid. You can find out more about on the Scheme Pays page and the tax allowances page.
Ways to take your main Scheme benefits
There are different ways you can choose to take your ESPS pension benefits. A summary of these is shown below.
When you retire, your pension administrator, Broadstone, will give you more information about your options. If you are unsure what is best for you, we strongly recommend you take Independent Financial Advice. There is more information on how to do this below and on the help and advice page.
Depending on the rules for your benefit category and government limits, you may be able to:
Give up part of your annual pension to get an additional cash lump sum (or increase a lump sum if you get one automatically)
Your total cash lump sum can be up to 25% of the value of your pension benefits (some or all of this may be tax-free, subject to certain government limits). If you take this option, your annual pension will be reduced as you are swapping some annual pension for cash.
Give up part, or all, of your cash lump sum to increase your pension
You may be able to give up part of your tax-free cash lump sum to increase your annual pension income.
Get extra pension for your dependants
You could decide to give up part of your own pension entitlement in order to give extra pension to eligible dependants, such as a spouse, when you die.
Take it all as a cash lump sum
If you have a small benefit entitlement in the Scheme, you may be able to exchange it for a one-off cash payment.
This is known as a ‘Trivial Commutation lump sum’ or a ‘small pot payment’.
If you want to exchange your pension benefits for a Trivial Commutation lump sum, you must meet certain criteria such as, you must be at, or over, the Normal Minimum Pension Age (NMPA) and have enough Lump Sum Allowance (LSA). The NMPA is currently age 55, increasing to age 57 from April 2028. However, some individuals may have specific circumstances which means their minimum age is lower. Please refer to your Member Guide for further information.
The total value of all your benefits in the Scheme, and any other pension arrangements (including any defined contribution and personal pension arrangements, but not your State Pension) must also be less than £30,000. You can read the full trivial commutation criteria in your Member Guide.
If the value of all of your pension benefits is more than £30,000, but you have a small amount of pension benefits in the Scheme, you may still be able to take a small pot cash lump sum if you meet certain other criteria. Please check your Member Guide for details.
Depending on your benefit category, there may be other rules about the exact amount you can take as a lump sum and annual pension. Please check your Member Guide for more information.
Taking your AVCs
If you paid Additional Voluntary Contributions (AVCs) while your were paying into your main Scheme pension, then you can have four different options of how to use your AVC fund.
Take an additional Scheme lump sum
Although your AVC account is managed by Standard Life, it is still technically held within the Scheme and you can take up to 25% of your total Scheme fund value as a lump sum. The maximum lump sum amount includes any automatic lump sum that you will receive with your main benefits, and will be tax-free up to the government limit (see the tax allowances web page). Any amount above this limit can then either be converted to additional pension (see below) or taken as a taxable lump sum.
Take additional pension benefits within the Uniper Group of the ESPS
Additional benefits can be purchased either on the same basis as your main Scheme pension or on different terms. For example, you may choose to buy additional pension with no inflation protection or without dependants’ benefits. The applicable conversion factors are available from your pension administrator, Broadstone. They are set by the Scheme Actuary and can change at any time.
Transfer out the AVC benefits
If you want to access your AVC benefits more flexibly, for example to use drawdown or to secure an annuity on the open market, then you will need to transfer your entire AVC account to another provider who offers these options. Please note that under current tax rules, your tax-free lump sum will then be limited to 25% of the AVC fund value.
Defer taking your AVCs until after you take your main Scheme pension
If you are over the age of 55, you may be able to keep your AVC funds invested within your Standard Life account beyond the date when you start to take your main Scheme pension. When you come to take your AVCs later, you will have the option to:
- take 25% as a tax-free lump sum
- convert it into Scheme pension - this could be all of your AVC funds, or the portion remaining after taking a lump sum
- purchase an annuity from another provider, we call this the Open Market Option
- transfer to another provider to access other options, such as drawdown
- take the full amount as a lump sum, known as an uncrystallised funds pension lump sum (UFPLS) with up to 25% tax-free and the remainder subject to income tax
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 your pension 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 on the Unbiased website.
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 pension 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 for my pension
You can find a step-by-step guide to the retirement process below…
1. Make sure you understand your benefits before you apply to take them
Before applying to take your benefits please make sure you understand all the options available to you, particularly when you can retire and the different options you have to take your benefits.
You can find out more information on the options available to you above and in your Member Guide.
You can request retirement estimates in your myESPS account and by contacting your pensions 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 web page.
2. Tell Broadstone about your chosen retirement date
To begin the retirement process, you need to contact your pension administrator, Broadstone, to let them know when you want to start taking your pension benefits and request a retirement quote.
You should get in touch with Broadstone at least three months before you want your pension to start.
If you want to start taking your benefits earlier than your normal pension age (usually age 63), you should contact Broadstone at least six months before your chosen retirement date.
You can find Broadstone’s details on the contact details page.
3. Getting your retirement quote
Once you have been in touch, Broadstone will process your request and will send you a retirement quote, approximately six to eight weeks before your retirement date.
Your retirement quote will include details of your available options and the forms you need to complete.
It will also show:
- the annual pension you might get
- your standard lump sum (if applicable)
- your maximum cash lump sum (and reduced annual pension)
- the impact of any Scheme Pays debit (if applicable)
If you have paid in Additional Voluntary Contributions (AVCs), Broadstone will send an AVC quotation letter with your retirement quote, which explains details of your available options to take your AVCs (see above).
The figures shown in your retirement quote are not guaranteed, and are likely to change by the time you retire. The changes could be due to your Pensionable Salary including an element of inflation protection. Please check your Member Guide for more information.
4. Confirm your retirement choices
If you wish to proceed with claiming your pension, you need to return your forms and any other documents requested to Broadstone, confirming how you want to take your benefits and your bank details.
- This should be done as soon as possible, and at least three weeks before your retirement date, particularly if you want to take any options beyond the standard pension and lump sum. See the options above or find out more in your Member Guide.
- If Broadstone receive your paperwork after your retirement date, your retirement will be backdated when it is processed but payments may be delayed (see below).
Please remember that once you accept your retirement quote and confirm your choices by returning the form to Broadstone, you cannot change your mind.
5. How your benefits will be paid
When Broadstone receives your completed forms, they will check they have all the information they need to start paying your benefits to you. If not, they will contact you as soon as possible for further details.
- When Broadstone has all of the information that they need to start paying your benefits, your payments will be set up and you will receive a confirmation letter. This will show the payments you will get and when you can expect to receive them. This letter is usually sent within 10 working days after Broadstone receives your completed forms.
- Broadstone will only process your retirement when they receive your forms. Payments may be delayed if your forms are returned late or are incomplete and may not start exactly on your chosen retirement date.
- If you have chosen to take a lump sum, and you have returned your forms on time, it will be paid to you on or shortly after your retirement date. Any lump sum due will not be paid through payroll, and can be paid to you once Broadstone receives and processes your forms.
You can find out more about what happens when you have started taking your benefits in the Final Salary pensioner area of this website.