Bank of England Supplementary Pension Plan At a glance...Introduction Introduction to the SPP...
24
Bank of England Supplementary Pension Plan Your essential guide Click here to start
Transcript of Bank of England Supplementary Pension Plan At a glance...Introduction Introduction to the SPP...
Bank of England Supplementary Pension Plan
Your essential guide
Click here to start
About this guide
This guide describes the main features of the Bank of England Supplementary Pension Plan (SPP), provided by Legal & General (L&G). This guide supports the scheme information and Key Facts documents from L&G, which contain investment information and important warnings about risk. L&G’s documents are provided at the point you join the SPP.
If there is any difference between the terms and conditions of your individual policy with L&G and this guide, the policy will apply.
This guide is based on our pension adviser’s understanding of legislation and practice for the 2017/18 tax year, which may change in the future. It includes figures from HM Revenue & Customs (HMRC) relevant at the time of writing. It does not contain advice.
Please read all information provided to you about the SPP.
You can navigate to any section of this guide by clicking on the menu options to the left. Alternatively, you can scroll through the guide page by page.
Introduction
Contributions
Investment
Retirement options
More information
Bank of England Supplementary Pension Plan
About this guide
Introduction to the SPP
Further details
Contacts and links
Introduction
Introduction to the SPP
Welcome to the Bank of England Supplementary Pension Plan (SPP). The SPP is an additional tax efficient voluntary savings vehicle to help you increase your pension.
As a member of the Bank’s Career Average Pension Section, you are accruing a guaranteed retirement income, based on your preferred accrual choice. The SPP provides an alternative means to increase your pension savings, outside of the core pension benefit. This may appeal to employees who:
• have previously worked part time or have gaps in their service and have no scope to increase their accrual rate;
• have joined the Bank with little or no other pension benefits;
• would like to increase their pension but are unable to dial up to the next accrual rate; or
• have a guaranteed pension behind them but wish to make additional contributions to try and increase their income in retirement utilising the flexibility of defined contribution (DC) pension rules.
The SPP is provided by L&G, who have provided a wide range of funds that you can invest in, ranging from low to high risk. The funds have been selected in conjunction with our advisers. The range is monitored by the SPP Governance Committee to ensure they remain suitable. Please note that in choosing from this fund range, the Bank can confirm that no prior approval is required under the Bank’s Personal Transactions policy.
Before deciding whether to contribute into the SPP, you should consider whether you are able to use any flex amount to secure additional pension in the Career Average Section, and if this would be preferable to contributing into the SPP, based on your circumstances.
Bank of England Supplementary Pension Plan
Contributions
Investment
Retirement options
More information
Contacts and links
About this guide
Introduction to the SPP
Further details
Introduction
Further details
We may change the SPP at any time, but we will inform you before making any significant changes.
When making decisions about the SPP, or retirement savings in general, you should always consider your circumstances, which may change. You should make sure that saving into the SPP is right for you. If you are not sure if the SPP is suitable for you, you should get independent financial advice.
The SPP does not provide a fixed accrual of pension based on your salary, as the value at retirement is based on your contributions, investment growth and the charges on the selected investment fund(s).
We have provided a pension modeller to enable you to assess the additional core pension that could be secured if you increase your accrual under the Career Average Section. This option is available during the Benefits+ enrolment window and details of the cost and benefit will be provided separately by the Bank.
Bank of England Supplementary Pension Plan
Contributions
Investment
Retirement options
More information
Contacts and links
About this guide
Introduction to the SPP
Further details
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Contributions: the basics
Your contributions will be paid monthly by salary sacrifice. This means you give up part of your salary before paying tax and National Insurance and we pay this into your policy as an employer contribution.
Using salary sacrifice means that you will not need to reclaim any tax relief, even if you pay the higher or additional rates of tax.
Please read the ‘More information’ section of this guide for further details of salary sacrifice. You can click on the box above to take you there now.
How much can I contribute?
There is a minimum contribution of £15.00 per month and a maximum contribution of 50% per month of your pensionable earnings and benefits allowance including all other benefits. There are also tax implications depending upon the amount you do pay, as outlined below.
You can change how much you contribute via Benefits+ but please be aware the window to change your contribution for a payday will close on the 23rd of the previous month.
Other single contributions (net of basic rate tax*) can be paid into the SPP by contacting L&G directly.
*If you are subject to higher rate or additional tax, any additional tax relief on your single personal contributions can be claimed by contacting your local tax office and is made by an adjustment to your coding. Tax relief is applied automatically to regular contributions paid through payroll.
Bank of England Supplementary Pension Plan
The basics
Tax implications part 1: annual allowance
Tax implications part 2: accessed benefits
and higher earners
Tax implications part 3: lifetime allowance
Suggested actions
Click here for more information
on salary sacrifice
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Tax implications part 1
Limit on tax relief
The level of personal contributions which will receive tax relief is limited to 100% of your earnings (or £3,600 a year if higher). Contributions paid by salary sacrifice do not count towards this limit.
Annual allowance
There is an allowance each year before pension contributions are taxed. This is usually £40,000 and includes total contributions made by you and anyone else. It also includes the value of your accrual of your defined benefit pension(s) in the Bank of England Pension Fund (the Pension Fund).
In some cases, your annual allowance may be less than £40,000 (see below).
If you go over your annual allowance, you may have to pay a tax charge of up to 45% on the amount over your annual allowance.
However, it may be possible to reduce or completely avoid the annual allowance charge using carry forward. Carry forward allows unused annual allowance from the pension input periods (PIPs) ending in the previous three tax years to be carried forward and added to the annual allowance of the current tax year. Please note, there are exceptions to this if you are subject to the reduced annual allowance having accessed benefits (the MPAA) outlined in the next section.
The increase in the value of pension accrual in the Pension Fund each year is used to calculate how much of your annual allowance the Pension Fund uses. The calculation is complex, but the Pension Fund administrator should be able to tell you whether you are likely to be affected.
Bank of England Supplementary Pension Plan
The basics
Tax implications part 1: annual allowance
Tax implications part 2: accessed benefits
and higher earners
Tax implications part 3: lifetime allowance
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Tax implications part 2
Reduced annual allowance for those who have accessed benefits
If you start to access any defined contribution pension scheme policies and continue to make pension contributions, your annual allowance may reduce to £10,000 for payments into defined contribution schemes such as the SPP. This is referred to as the money purchase annual allowance (MPAA). The Government plans to lower the MPAA to £4,000 and you should get advice if you expect to contribute more than either of these amounts.
The MPAA won’t apply if:
• you buy an annuity;
• you take tax-free cash and do not take any more money from your retirement pot using drawdown; or
• your retirement pot is less than £10,000 and you take it as a single cash lump sum.
If you think you might be affected by the MPAA, you should speak to an independent financial adviser.
Tapered annual allowance for higher earners
If you have an adjusted income of over £150,000 in a tax year, you may have your annual allowance in that tax year reduced, or tapered, by £1 for every £2 of income received over £150,000. Once your adjusted income goes over £210,000, your annual allowance is reduced to £10,000.
Adjusted income is broadly defined as taxable income from all sources plus any pension contributions made on your behalf. It may also include pension contributions made by you, depending on how they are taken from your salary.
In some instances you may not be affected, even if your adjusted income is over £150,000.
The calculation for whether your annual allowance should be tapered, and by how much, is complicated. If you think you may be affected, you should get independent financial advice.
Bank of England Supplementary Pension Plan
The basics
Tax implications part 1: annual allowance
Tax implications part 2: accessed benefits
and higher earners
Tax implications part 3: lifetime allowance
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Tax implications part 3
Lifetime allowance
There is a lifetime allowance that limits the value of pension benefits that you can build up before paying a tax charge. The lifetime allowance is £1 million for most people.
If you receive any pension benefits above your lifetime allowance, you may have to pay an extra tax charge of 25% (if paid as income) or 55% (if paid as a lump sum). Some lump sums paid when you die are also measured against your lifetime allowance.
For defined benefit pension schemes prior to drawing pension benefits, such as the Pension Fund, you calculate the total value of your benefits by multiplying your expected annual pension by 20. You should also include any additional pension savings you have such as the SPP.
If you are drawing any pension from the Pension Fund or any other defined benefits pension scheme, you should contact the relevant pension administrator for details of the value used under the lifetime allowance.
There are some protections available for the lifetime allowance. You can find more information at www.gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance
Taxation of benefits on death
Please see the More information section for details for how your benefits may be taxed in the event of your death.
Bank of England Supplementary Pension Plan
The basics
Tax implications part 1: annual allowance
Tax implications part 2: accessed benefits
and higher earners
Tax implications part 3: lifetime allowance
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Contributions: suggested actions
1. Assess the Bank’s online defined benefit pension modeller to review the additional accrual and potential increased retirement pension that can be secured through using the flexible accrual options. Under this option, the Bank is underwriting the cost of providing the additional pension illustrated.
2. When deciding on your accrual choice, you should think about the level of income you will need in retirement and consider whether you are saving enough.
3. To help you decide if you should make further or additional contributions under the SPP, you can use L&G’s online tool, which allows you to model how SPP calculations could affect your income in retirement. Visit www.legalandgeneral.com/retirementplanner
4. You should review whether your contributions into the SPP might impact your annual or lifetime allowance. If you think you may be affected by the annual or lifetime allowances, you should speak to an independent financial adviser. A list of advisers can be found at www.unbiased.co.uk and there may be a charge for any advice received.
Bank of England Supplementary Pension Plan
The basics
Tax implications part 1: annual allowance
Tax implications part 2: accessed benefits
and higher earners
Tax implications part 3: lifetime allowance
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Investment: the basics
The aim of investment is to help the value of your pension savings grow over time. The money in your retirement pot will be invested, but you can choose where, and how much risk you take. Where your contributions are invested will be one of the most important factors in the long-term value of your savings.
How and when you plan to access your retirement pot will affect your investment choice. Please read the ‘Retirement options’ section of this guide for more information.
When you join the SPP, your contributions are automatically invested in the Legal & General Multi Asset Fund (MAF). You should think about whether this investment option is right for you, as you can change how your retirement pot is invested.
Bank of England Supplementary Pension Plan
The basics
The default fund
Alternative investments
Charges
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
The default fund
The MAF was chosen as the default investment fund following a recommendation by our pension consultants, following a review of all the funds available with L&G and their suitability for members of the SPP. The review considered the risk profile, fund management charges and age profile of the potential membership.
The aim of the MAF is to provide long-term investment growth through exposure to a diversified range of asset classes. The MAF sits within the Association of British Insurers (ABI) UK – Mixed investment 40-85% shares sector. Funds in this sector are required to have a range of different investments but must hold between 40% and 85% of its assets as company shares. It also invests in property, bonds and cash.
The diversified nature of the MAF means that it is expected to have less exposure than an equity-only fund to adverse equity market conditions. However, the MAF may perform less strongly than an equity-only fund in benign or positive market conditions. As a result, the fund carries a medium level of investment risk and further details of its investment risk classification can be found in L&G’s investment guides.
Further information on the MAF can be found online at: L&G SPP Default Fund.
It is important to remember that the value of your retirement pot can go down as well as up, so you could get back less than you originally paid in. If you are not sure about your investment choice, you should get financial advice.
In conjunction with our advisers, we have decided that the default fund will not change its investment risk profile towards a selected retirement date (sometimes known as lifestyling).
The SPP is designed to supplement you pension and can be drawn at any point between 55 and 75 without penalty, or at the same time as your Fund pension. Therefore, you need to consider your investment objectives and attitude to investment risk when you join the SPP. You should continue to review your investment choice on a regular basis, to make sure it is right for you. This should include thinking about how you are planning to access your retirement pot. L&G provides an investment modeller to help you determine your attitude to investment risk and the types of fund that may be suitable based on your circumstances.
Bank of England Supplementary Pension Plan
The basics
The default fund
Alternative investments
Charges
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Alternative investments
Once your policy has been set up, you can change where your policy is invested from a range of L&G’s investment funds.
You can change your investments by logging into your online account or by writing to L&G directly. There is no fee charged for switching funds and you can make changes as frequently as you want. You can invest in more than one fund at any time.
If you decide to make your own investment choice, you will need to consider the amount of risk you are prepared to take, balanced against the level of return you are hoping for.
Your investment choice will be a personal decision based on your circumstances, and there is a range of investment options available.
A core range of investments has been selected by the Bank and its pension advisers to provide a variety of options and risk levels to enable you to select the most appropriate fund(s) for your circumstances.
This core range of funds has been reviewed against the Bank’s insider dealing policy and you can select or change funds within this range without prior approval from the Bank.
Where can I find further information on the available funds?
Factsheets for all available funds, including the MAF can be found online at: L&G SPP fund factsheets
These show details of the aims of the fund, and the breakdown of where assets are invested. Details of the funds in this core range can be found at: L&G SPP core fund range
To see the charges for individual funds and to switch your investments, please log in to your online account here: L&G SPP - Manage your account
Bank of England Supplementary Pension Plan
The basics
The default fund
Alternative investments
Charges
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Charges
L&G takes a charge from your policy to cover the cost of their services.
The annual charge for L&G funds has two parts; a management charge and an investment charge. For employees, the Bank has agreed to pay the administration fee to L&G which reduces the management charge for members to zero. The investment charge will depend upon the fund(s) you select.
The table below shows the annual charge for investing in the Legal & General Multi Asset Fund.
Please be aware that if you leave the Bank’s employments, you will pay L&G’s administration charge, the amount of which will be confirmed to you by L&G upon leaving the Bank.
The other available funds may have different charges. You can find details of these charges at: L&G SPP fund factsheets
.
Bank of England Supplementary Pension Plan
Management
charge
Investment
charge
Total
charge
Approximate
yearly cost per
£1,000
0.00% 0.13% 0.13% £1.30
The basics
The default fund
Alternative investments
Charges
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Investment: suggested actions
You should review your investment choice when you join the SPP, and on a regular basis, to make sure it is right for you. This should include thinking about how you are planning to access your retirement pot.
You can also review your attitude to risk using the tools available on L&G’s website.
You should read L&G’s investment fund information for more details on the MAF and the other funds that are available, available on L&G’s website. You should make sure you understand how the investment options work and that you are comfortable with the level of risk associated with each.
Bank of England Supplementary Pension Plan
The basics
The default fund
Alternative investments
Charges
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Retirement options: the basics
From age 55, you can access your SPP savings in a number of ways. You do not have to retire or stop working for the Bank, or begin drawing benefits from your Pension Fund to do this.
You can continue contributing after accessing your retirement pot. You should be aware that you may have a reduced annual allowance if you do this. See the ‘Contributions’ section for further details.
How does it work?
As well as being able to increase your defined benefit pension accrual in the Fund, the SPP is designed to allow you flexibility as to how you can access your savings.
The amount you receive when you decide to access your savings will depend on a number of factors. These include:
• the value of your SPP savings;
• how and when you choose to receive your retirement benefits;
• your age,
• your health and lifestyle; and
• interest rates.
Bank of England Supplementary Pension Plan
The basics
Regular income or single payments
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Regular income or single payments
Regular income
You can take up to 25% of your policy as a tax free payment and use some or all of the remainder to provide regular income in retirement, known as an annuity. This income is paid for the rest of your life or for a set period of time. You can select how the annuity is set up, for example to increase annually, or to continue to be paid to a dependent, or for a set number of years after your death. Choosing additional options can reduce the level of retirement income that will be paid.
You do not have to establish an annuity with L&G and you should shop around other insurance companies to find the best deal. This is called taking the open market option. Any health conditions you may have should be taken into account when establishing an annuity, as this can increase the level of income paid to you
Single payments
You can elect to take some or all of your savings as single payments by either:
• taking all of your savings in one go, as cash; or
• leaving your savings invested, and taking smaller amounts as and when you need them. This is called ‘drawdown’
Each of these single payments will be 25% tax-free, and you will then pay income tax at your highest marginal rate on the other 75%.
Bank of England Supplementary Pension Plan
The basics
Regular income or single payments
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Retirement options: suggested actions
From age 50, you should think about how and when you plan to access your policy, and make sure that your investment choice reflects this.
Choosing how to access your retirement pot is an important decision and will depend on your circumstances. You should get free and impartial guidance from the Government’s Pension Wise service, available at www.pensionwise.gov.uk
You may also want to get advice. You can find a list of advisers at www.unbiased.co.uk
You can use money directly from your policy to pay for any advice you receive. Details of this can be found by contacting Legal & General.
Bank of England Supplementary Pension Plan
The basics
Regular income or single payments
Suggested actions
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Joining the SPP and contributions
What happens if I select this benefit?
If this is the first time you have selected this benefit then, once enrolment has closed, your details (including name, address and National Insurance number) will be issued to L&G.
On receipt of your first contribution, L&G will write to you confirming your policy number, providing a membership certificate and reminding you of your right to cancel the policy within a ‘cooling off period’. Your first contribution will be invested in the L&G MAF.
Once you have received your policy number, you will be able to register for L&G’s member website.
Can I cancel my SPP policy?
You can stop contributing into the SPP at any time. If you cancel your SPP policy within 30 days of joining, the contributions will be refunded by L&G to the Bank.
Can I stop contributing?
Yes. You can stop contributing into your policy at any time, by logging into Benefits+ and amending your contributions to zero.
What happens if I change the number of hours I work or my salary changes?
The pension contribution is a fixed monthly amount and will not automatically change if your salary changes. If your hours or salary change and you wish to amend your monthly contributions, then you should log on to the Benefits+ portal and reselect this benefit.
What happens if I have a period of unpaid leave during the benefit year?
For unpaid leave of less than four weeks, a pro-rata deduction will be taken. For unpaid leave of more than four weeks, or any other period with no pay, no contribution will be payable while on no pay. If you receive a salary payment in the month that no pay starts, then a contribution will be taken that month.
Bank of England Supplementary Pension Plan
Joining the SPP and contributions
Salary sacrifice
Managing your policy
Transfers
Pension benefits
Death benefits
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Salary sacrifice
Is salary sacrifice right for me?
Contributions into the SPP are paid by salary sacrifice. However, some people will not be able to pay by salary sacrifice and will therefore be unable to join the SPP:
• If salary sacrifice would cause your salary to fall below the national minimum wage or national living wage, depending on your age, you will not be able to contribute in this way.
Before joining the SPP, you should consider whether doing so and making contribution by salary sacrifice is right for you. There are some things you should consider.
• If your salary falls below your personal income tax allowance after it is reduced, you will lose out on tax relief.
• If you have reached your State Pension age, you will no longer pay National Insurance and will not benefit from a saving in National Insurance.
• Some State benefits such as Statutory Sick Pay could be reduced as they are linked to your total earnings which will be reduced by salary sacrifice.
• Some mortgage lenders may base the amount they are willing to lend you on your salary after salary sacrifice, so the amount you can borrow may be reduced.
Can I change how much I am sacrificing?
The SPP is an ‘anytime benefit’ and therefore you can change the amount you contribute at any time during the benefits year without requiring an approved lifestyle change. You will just need to log on to the Benefit+ portal and make your change, which will be effective from the next available payday (changes made by the 23rd of the month will be applied to the following month). Please note the minimum contribution of £15 per month and maximum contribution of 50% per month of your pensionable earnings and benefits allowance including all other benefits.
Bank of England Supplementary Pension Plan
Joining the SPP and contributions
Salary sacrifice
Managing your policy
Transfers
Pension benefits
Death benefits
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Managing your policy
What happens if I leave the Bank?
A pro-rata deduction will be taken in the month of leaving, unless you cease contributing before your final month.
Your policy will stay invested with L&G. The Bank will stop paying the administration fee for your policy, and L&G will advise the administration fee that you will need to pay.
L&G will also write to you with your options, which include transferring to another pension provider or paying personal contributions.
How can I keep track of my policy?
You can visit L&G SPP - Manage your account where you can see a record of the contributions paid into your policy and its current value.
Is my policy secure?
The Bank has set up a Governance Committee to monitor the performance of the SPP and L&G. An aspect of the ongoing governance is reviewing whether L&G remains financially sound.
If L&G or any external fund managers you are invested with cannot meet their financial obligations to you, you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). You can get more information about compensation scheme arrangements, and your entitlements, from the FSCS on 0800 678 1100 or by emailing [email protected]
Also, investment performance is not guaranteed. The value of your retirement pot could go down as well as up, and you may get back less than the amount paid in.
Bank of England Supplementary Pension Plan
Joining the SPP and contributions
Salary sacrifice
Managing your policy
Transfers
Pension benefits
Death benefits
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Transfers
Can I transfer other pension savings into my SPP policy?
Yes. If you have existing pension policies then you may wish to consolidate these with your Bank pension provision by transferring them into the SPP. You must fully join the SPP before you can do this.
Transferring a pension pot will expose you to certain risks. These differ according to the type of pension from which you are transferring, or the particular features of your individual policy. It is important that you understand the impact of transferring your pension, as you could potentially be worse off as a result.
In order to do this, you will need to know the type of pension plan that you want to transfer. You should contact the administrator or provider of the plan if you are unsure. They should also be able to confirm any guaranteed benefits which you would lose if you were to transfer. Ultimately, the risk of transferring is yours, and it is always recommended that you receive independent financial advice before transferring.
How to transfer: There are two ways to transfer an existing pension pot into the SPP:
Option 1: Financial advice - Because there are risks when transferring a pension, we recommend you take advice from an independent financial adviser unless you are certain that you wish to go ahead without advice. If you want advice, a list of advisers can be found at www.unbiased.co.uk. There is normally a charge for financial advice and you should agree the costs with the adviser before any advised services are agreed to.
Option 2: Contact Legal & General directly - If you decide you wish to proceed without advice, you can contact Legal & General directly and request an execution only transfer, normally without charge. They can be contacted by telephone on 0345 070 8686, or via email to [email protected]. Please be aware that Legal & General will not be able to transfer certain policy types without you receiving financial advice, as outlined above.
Can I transfer my pension savings out of my SPP policy?
Yes. If you leave the Bank, you will have full control over your SPP policy, including the option to transfer it to another pension policy. You should contact the administrator of the receiving pension policy in the first instance.
Bank of England Supplementary Pension Plan
Joining the SPP and contributions
Salary sacrifice
Managing your policy
Transfers
Pension benefits
Death benefits
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Pension benefits
Where can I get details of The Bank of England Pension Fund?
You will be accruing pension benefits under the Career Average Section.
For details of these benefits, please contact the administrators, Equiniti Paymaster on 01293 604119 or email [email protected]
How much will my State Pension be?
The amount will vary depending on your National Insurance payments and credits.
You can get an estimate of your State Pension at www.gov.uk/check-state-pension
What is my State Pension age?
You can find out your State Pension age at www.gov.uk/state-pension-age
Bank of England Supplementary Pension Plan
Joining the SPP and contributions
Salary sacrifice
Managing your policy
Transfers
Pension benefits
Death benefits
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Death benefits
What happens to my SPP policy when I die?
This depends on your age when you die and whether you have accessed your retirement pot.
It is important that you choose who should receive the money in your SPP policy when you die, known as beneficiaries. You can do this by filling in an L&G nomination form
You should return the completed form to L&G who will usually follow your choice, but the final decision is theirs.
You should tell L&G about any change to your nomination by filling in a new form.
How is my SPP policy paid when I die?
Bank of England Supplementary Pension Plan
Before age 75 Aged 75 or over
Before
accessing
your SPP
policy
Your entire SPP policy will be paid to
your beneficiaries who can draw a
tax-free income from it, or it can be
paid as a tax-free lump sum.
This may depend on you having
enough unused lifetime allowance,
which is currently £1 million (see the
‘Contributions’ section).
Your entire SPP policy can be paid to
your beneficiaries who can draw an
income from it or take it as a lump
sum. All payments made to your
beneficiaries will be taxed at their rate
of income tax.
After
accessing
your SPP
policy
Payments made to your
beneficiaries will be tax-free.
Payments made to your beneficiaries
will be taxed at their rate of income
tax.
Joining the SPP and contributions
Salary sacrifice
Managing your policy
Transfers
Pension benefits
Death benefits
Introduction
Contributions
Investment
Retirement options
More information
Contacts and links
Contacts and links
Legal & General
You can register and log into L&G SPP website to do the following:
• See your current policy value • See where you are invested • See how much has been contributed • Change your investment option • Use SPP planning tools
You can also visit L&G SPP calculators for information and access to planning tools without the need to login.
You can speak to L&G on: 0345 070 8686
Bank of England Pension Fund calculator
During the benefits window the Bank will make available a calculator which shows the potential impact on cost and benefit of increasing or decreasing your annual accrual in the Fund.
Unbiased - www.unbiased.co.uk
Unbiased provides a list of independent financial advisers in your area.
Government information - www.gov.uk/browse/working
This is a Government source of information on working, jobs and pensions, including State Pensions, Pension Credit, National Insurance in retirement and much more.
Lost pensions - www.gov.uk/find-pension-contact-details
The Pension Tracing Service is a government service which helps you find pensions you have lost track of.
Bank of England Supplementary Pension Plan
