Your pension, extra information
Leaving your employer
If you leave your current employer or decide to stop contributing to your personal account, your account remains with The People’s Pension (further information is available on request).
Even if you move jobs you can keep paying into The People’s Pension. Your former employer will no longer contribute, but your new employer may.
However, you can carry on contributing even if your new employer doesn’t or if you become self-employed. Simply download a Direct Debit form from your Online Account.
You may be able to transfer the value of your personal account to another registered pension scheme. We do not charge for transfers out of The People’s Pension.
If you leave but then come back to The People’s Pension in the future, we’ll reactivate your existing personal account and make sure any new contributions go into that. You’ll only ever have one personal account with The People’s Pension.
Taking your benefits
We’ll contact you before your selected retirement age explaining your options and how to access your savings.
Your choices at retirement
Read about the different ways you can take your pension
You can’t normally get access to your personal account before you reach age 55 (or age 57 from 2028). This doesn’t mean you’d have to have to stop working to access your personal account though.
You could access your personal account earlier if on medical grounds you’re unable to continue your occupation, and as a result you have stopped working. If you’re suffering from serious ill health (a life expectancy of less than 12 months), it may be possible for you to receive your entire pension pot as a serious ill health lump sum.
What happens to my pension if I die before I retire?
If this happens to you, the value of your personal account will be paid as a lump sum to one or more of your beneficiaries. The lump sum is normally tax-free.
You can tell the trustee which people or organisations you would like it to consider as your beneficiaries using your Online Account.
Know how on taxes
The government wants to encourage us all to save for our retirement so they provide something called tax relief.
The maximum amount you can save into all of your pension arrangements before incurring a tax charge is limited to an annual allowance. This is £40,000 for the current tax year (2017/2018).
This limit includes all of your employer’s and your contributions. Whether this limit has been exceeded is based on the contributions paid within each scheme’s pension input period. The period under The People’s Pension matches the tax year and runs from 6 April to 5 April.
The situation can be complicated if you are contributing to several pension arrangements at the same time or are continuing to accrue benefits in a defined benefit pension scheme.
If you have made use of the new pension freedoms introduced by the government from 6 April 2015, you might be subject to a reduced money purchase annual allowance of £4,000 a year. If you are uncertain please contact your HMRC tax office or the government’s Pension Wise service. We would recommend that you seek professional advice.
(Please note – The 2017 General Election has affected the money purchase annual allowance. Visit our help and support for more.)
If you exceed the annual allowance or, if applicable, the money purchase annual allowance, a tax charge may apply to the excess.
As well as an annual allowance there is a maximum amount you are able to save into a pension scheme and receive tax relief.
This is called the lifetime allowance and is the overall limit on the pension savings that qualify for tax relief and will apply to all of the pension benefits you build up over your entire working life.
From 6 April 2017, the limit is £1 million.
B&CE Financial Services (B&CE) and its associated companies (including The People’s Pension Trustee Limited) collect and use personal information about their scheme members. All personal data is held and processed in accordance with The Data Protection Act 1998.