Published
1st August 2025
The following note is only relevant to members with defined benefit (DB) benefits. Members with only defined contribution (DC) benefits will be unaffected by the changes set out below.
Please note that new pension calculation factors for your defined benefits will take effect from 15 July 2025. These factors are periodically reviewed by the Trustees and set in line with the Trust Deed and Rules which govern the Plan and based on the advice of the Scheme Actuary. The reason for regular review is that if factors are set too high this affects the overall security of benefits for all members, as benefits which are generous relative to the funding leads to a monetary strain on the Plan. As such, it is important that factors are set taking into account the overall funding and situation of the Plan.
The factors that are changing on 15th July are those used with the options of early or late retirement, for swapping part of your pension for cash at retirement or taking a transfer value to another pension scheme. Your pension at your Normal Pension Age is unaffected. The overall effect of the changes is that if you choose to take early retirement your pension will be slightly lower than previously, or on late retirement your pension will be slightly higher than previously (ie around 1% difference to your pension for each year early/late). If you choose to take the option offered to you to swap part of your pension for cash lump sum at retirement, you will give up slightly more pension for each £1 of cash taken.
The benefit projection modeller in PRISM will be updated for these new factors.
If you have recently received a benefit quotation from the Plan administrator, then these changes will not affect your benefits if you confirm to the administrator you wish to accept the quotation within the guarantee period.
All factors remain subject to change at any point in the future, given the Trustees’ duty to monitor the health of the Plan on an ongoing basis.
