About the transfer – for employees
Both EasyBuild and The People’s Pension are workplace pension schemes provided by B&CE.
Here at B&CE, we’ve decided to refine the number of pension arrangements we offer… EasyBuild is closing, and our EasyBuild members will be moving to The People’s Pension.
So if you’ve got an account with EasyBuild, in future your pension savings will be transferred to and invested through The People’s Pension.
Benefits of moving to The People’s Pension
You’re already part of the B&CE family through your B&CE EasyBuild Stakeholder Pension (B&CE is the provider of EasyBuild and The People’s Pension).
As part of our family, we’ve got your best interests at heart. And we’re happy that you’ll be moving over to The People’s Pension, because there’s so many benefits…
We believe that transferring your EasyBuild pension savings to The People’s Pension is in your interests as an EasyBuild member because it means:
The transfer has the support of the EasyBuild Independent Governance Committee. And we’ve consulted the Construction Industry Joint Council.
How does the move affect the security of my savings?
It’s important that you read about the regulations that protect your savings and how they’re affected by the transfer.
So make yourself a cup of tea, find a comfy chair and settle down for a good read…
You might be wondering…
Claiming your money
If you’re 55 or over you can start to take money from your pension pot if you want to – but you don’t have to.
There’s a few different ways you can take it. And it’s important you have enough information to make the right decision for you. After all, it’s your money and you’ll want to make the most of it.
So it’s worth doing your own research and getting guidance and advice – before you make a decision about what you want to do with your pension savings.
If you’ve got more than £10,000 in your pension pot…
If your pension pot with EasyBuild has more than £10,000 in it – you’ll have the same options for taking your money out with The People’s Pension, as you do at the moment with EasyBuild.
If you’ve got £10,000 or less in your pension pot…
Moving your pot from EasyBuild to The People’s Pension might affect the way you can take money from it if you’ve got £10,000 or less. Because of HM Revenue & Customs’ rules around taking small pot lump sums, there’s a risk you won’t be able to claim your pot all in one go for a period of time after the transfer.
But if you’ve got more pension savings with other providers, you could transfer them into The People’s Pension to make your total amount over £10,000. And then you’d be able to take your whole pot in one go as a single lump sum if you wanted to. Plus, you’d open up the option of taking your pot a bit at a time.
Claim your EasyBuild money online
If you do want to claim your EasyBuild pension pot before the move, the quickest and easiest way to do so is through your Online Account.
- The money you’ve got in your pension pot will still move over to The People’s Pension even if you’re no longer contributing to EasyBuild.
- If you didn’t know you had an EasyBuild account until you received a letter from us about the move, you can find out how much is in your EasyBuild pot by setting up your Online Account »
- If you haven’t received a letter from us but you think there’s a chance you have (or have had) an account with EasyBuild, you can find out if any of your previous employers ran an EasyBuild scheme using the government’s pension-tracing service »
Within 15 years of retirement? You’ll be on the glidepath…
If you’re within 15 years of your selected retirement age (or the default retirement age if you haven’t self-selected one), you’ll probably be on the EasyBuild glidepath. This means your pension savings are being gradually and automatically moved into lower-risk investments as you get closer to retirement.
The People’s Pension also has a 15-year glidepath. So if you’re on the 15-year glidepath with EasyBuild before the transfer, you’ll automatically be placed at the same point in the glidepath under The People’s Pension when your pension savings are moved over.
But you can still choose to change how your money is invested under The People’s Pension after the transfer by self-selecting via your Online Account.
- If you’ve self-selected your investment funds in EasyBuild rather than going with one of our investment profiles, the glidepath won’t apply. So your pension savings will be invested in The People’s Pension in the same way they were in EasyBuild.
- If you’ve already got an account with The People’s Pension as well as your EasyBuild account, this might work differently.
(Find out more in the ‘What if I’ve already got an account with The People’s Pension’ section below…)
- If you joined EasyBuild before 1 February 2011, you may be on a 4 or 5-year glidepath instead of the 15-year glidepath. This means the move will work slightly differently for you. Find out more about the 4 and 5-year glidepaths »
Your options at retirement
Choosing what to do with your pension savings is a big decision. So you might want to get some guidance or advice to help you understand all of your options and how the transfer from EasyBuild to The People’s Pension might affect them.
But for the most part, your options at retirement will be the same under The People’s Pension as they were under EasyBuild.
One thing though – the transfer could have an impact on your options if you have £10,000 or less in your pension pot.
(Find out more in the ‘What if I’ve got £10,000 or less in my EasyBuild pension pot?’ section below…)
Smaller pension pots
Normally, if you have £10,000 or less in one of your pension pots, you have the option of taking the whole of that pension pot as a single cash sum (called a ‘small pot lump sum’) once you’re 55 (or 57 from 2028).
But the transfer may have an impact on this option, as may other things like tax…
What are the tax implications?
When you take a lump sum, 25% of it will be paid tax-free – but you’ll need to pay tax on the remaining 75% as if it was income. So it’s wise to be careful when you cash in your pension savings, as it could take you into paying tax at a higher rate than normal.
What about taking multiple small pot lump sums from different pots?
You can only take up to 3 personal pension pots (like EasyBuild) as small pot lump sums in your lifetime. But with occupational pension schemes (like The People’s Pension), the number of small pot lump sums you can take is unrestricted.
How might the transfer impact my option to take a small pot lump sum?
There are different rules depending on which type of pension you have savings in.
In particular, there are HM Revenue & Customs (HMRC) regulations that may restrict you from taking small pot lump sums if there’s been a transfer into your account in the previous 5 years.
So there’s a risk that the transfer of your EasyBuild savings to The People’s Pension could mean you won’t be able to claim the whole of your pension savings as a small pot lump sum until a period of time has passed after the transfer from EasyBuild to The People’s Pension.
All your options at retirement
Even if your pension savings are £10,000 or less, you have lots of options at retirement (not just taking it all as a small pot lump sum).
Before making any decisions, you should find out about all your options and their tax implications – you might want to get some guidance and/or advice »
We’ll align your EasyBuild account with your settings in The People’s Pension before the move…
If you already have an account with The People’s Pension, we might change your settings in EasyBuild before the move so that they match your settings in The People’s Pension. This will help us to make the transfer in the most efficient way.
If the way your EasyBuild pension savings are currently invested is different to the way your pension savings under The People’s Pension are invested, we will alter your investment selection under EasyBuild to match your investments under The People’s Pension before making the transfer.
But after the transfer, you will still have the option to change your investment choices under The People’s Pension by choosing an investment profile or self-selecting from the available funds.
If your selected retirement age under The People’s Pension is different to the one you have under EasyBuild, we will align your EasyBuild selected retirement age with the age you have under The People’s Pension before making the transfer.
This may mean that your EasyBuild savings are moved onto a different stage on the glidepath if you are within 15 years of retirement.
If you haven’t selected a retirement age in EasyBuild and/or The People’s Pension, it’s very likely to be different in your different accounts. This is because the default retirement age in EasyBuild is 65, but in The People’s Pension, it varies based on what date you’ll reach State Pension age (which depends on when you were born – you can check your State Pension age on the government’s website).
So for example, if your retirement age is set to 65 in EasyBuild and 67 in The People’s Pension, the transfer will include updating your selected retirement age in EasyBuild to age 67. This means if your glidepath has already begun, it will be wound back 2 years.
But after the transfer, you will still have the option to change your selected retirement age under The People’s Pension at any time.
Let us know if you don’t want us to make these changes
Any necessary changes to your EasyBuild investments or your selected retirement age will be made after a period of 6 weeks from the date of the letter we sent you – unless you tell us you don’t want us to do so.
And if you don’t want us to make the changes, you’ll also need to tell us what other pension arrangement you want your EasyBuild pension savings transferred to. Your pension savings can’t stay in EasyBuild in the long term.
What you need to do
If you’re happy to transfer, you don’t need to do anything
If you’re happy for us to move your pension savings to The People’s Pension you do not need to take any action:
- You’ll receive joiner information in the post after we’ve moved your money over to The People’s Pension.
- Once you’ve received your joiner information and you’re a fully-fledged The People’s Pension member, you’ll want to set up your Online Account so you can check your balance and manage your account.
If you don’t want to transfer, let us know
If you don’t want us to transfer your EasyBuild pension savings to The People’s Pension, please tell us within 2 months of the date of your letter:
- You’ll also need to tell us what alternative pension arrangement you want your EasyBuild pension savings transferred to. We’ll provide you with the necessary forms to do this. Please note, you may also need to complete forms for your new arrangement.
- Your pension savings will remain in EasyBuild until the transfer to your chosen alternative pension arrangement is completed.
If you don’t want us to make any necessary changes to your set-up under EasyBuild, please tell us within 6 weeks of the date of your letter:
- If you’ve already got an account with The People’s Pension, see the ‘What if I’ve already got an account with The People’s Pension?’ section above about the changes we might make to your EasyBuild account.
- If you joined EasyBuild before 1 February 2011, read about the changes we might make to your EasyBuild account if you’re on a 4 or 5-year glidepath »
Want to know more?
You may want to explore our webpages and get to know The People’s Pension before we move your money over from EasyBuild.
You could choose to take independent financial advice on the impact of the transfer or about your options at retirement. You can use Unbiased to help find a local adviser. Advisers may charge for any help or advice they give you.
Haven’t seen a letter from us and think you should have?
Please get in touch if you haven’t received a letter by 15 September 2017 about the move from EasyBuild to The People’s Pension but think you’ve got an EasyBuild account.
0330 024 5277