Your Pension - Your Future 

Membership was non-contributory up until 31 March 2007. From 1 April 2007 there was a mandatory 5% salary sacrifice cost share for membership of the final salary scheme, ZPensionBuilder (ZPB).

The accrual rate during membership for most members was a 60th, however, there was the opportunity to change this to 40/48/80ths under the Flexible Benefit Scheme that was in operation from 1998 to 2007.

It has not been possible to change accrual rates since 1 April 2007, which is a standard 60th for most members. However, to reduce the initial impact of the cost share members could elect a lower accrual rate of a 70th (with a 3% cost share) up until January 2011.

Members also had the option to make additional savings to the various in-house AVC arrangements and in later years the Money Purchase section of the Scheme, ZCashBuilder (ZCB). These defined contribution (DC) funds can be the first port of call for a tax-free cash lump sum.

Final salary accrual stopped on 31 December 2015, but members retain the link to salary while they remain active. Membership of the Scheme from 1 January 2016 onwards is to the Contracted-in Money Purchase section of the scheme, ZCB.

All active members of the scheme are now in the money purchase section of the scheme (ZCB) and over time, their ZCB fund will build up and be reflected in the online quotes generated. Their ZCB will be the first port of call for cash - if claimed at the same time as their final salary benefit, so as the ZCB fund increases, it will be reflected as the minimum cash as shown in the quotes. If the ZCB fund exceeds their cash allowance at retirement then the balance will be able to be claimed under the pension freedoms for defined contribution schemes.

The quotation facility on this website has been updated to reflect the final salary section (ZPB) ceasing accrual effective 31 December 2015.

Taking pension quotations generated online will now only include final salary membership to 31 December 2015 and reflect their latest pensionable salary. However, while the member remains active in the scheme the final salary pension will continue to reflect salary progression over time.

The scheme was split into 4 sections depending on who you worked for historically:

• AD Tier – Allied Dunbar tier
• ES Tier – Eagle Star tier
• ZI Tier – Zurich Insurance tier
• Tier 2000 – this was a section set up for employees joining after 2000, but AD, ES & ZI Tier members could also choose to switch to Tier 2000

ZCashBuilder and ZPensionBuilder. 

From 1 April 2007 ZCashBuilder was introduced for new employees, although existing members could choose to switch to ZCashBuilder. ZCashBuilder is a money purchase or defined contribution pension section, and members will build up a pot of money to be used for pension benefits.

Employees who were in one of the existing final salary tiers had the choice to move to a new final salary pension section called ZPensionBuilder, but with a mandatory salary sacrifice cost share, or to ZCashBuilder with no mandatory cost share.

You can find details of your Normal Retirement Age on the member website or the statement you were sent when you left the Scheme. 

You can’t usually take your pension earlier than the Normal Minimum Pension Age ('NMPA') set out in legislation.  The NMPA is currently age 55 and will increase to age 57 from 6 April 2028.  However, some members have a Protected Pension Age which means they can take their pension from age 50.  

Yes, in the vast majority of cases you can take your pension at any time from age 55.

If you take your pension early it will be reduced to account of the fact that it is being paid earlier than expected so will be paid longer. Details of how the reduction is calculated can be found in your Member Guide.

You can see the impact on your pension benefits by running quotes using the online facility.

A small number of members can take their pension at any time from age 50 - if you are eligible the online facility will allow you to run quotes based on ages before 55. If you take benefits before age 55 a condition of the government's protected retirement age rules is that you take all benefits under the scheme at the same time and that you stop working for the Company at that point.

NB - if you were in the AD section of the scheme and you qualified for the 'Rule of 60' when you left the Company it means that you may be able to take benefits (for service accrued to 30 November 2006 only) from age 55 onwards unreduced for early payment. Any benefits accrued after that date, or any final salary (ZPensionBuilder) benefits would still be reduced if taken before age 60.

You have the option to take your pension after age 60 and your benefits will be increased by a late retirement factor for the period of deferment.

Depending on when you left service and what tier you were in, you may have a Normal Pension Age later than age 60 and so early retirement reduction factors rather than late retirement ones may apply instead.

NB - if you are a member of the ES Tier then to take your benefits late you must be in gainful employment. If you elect to take your benefits after age 60 and are no longer in gainful employment, then your retirement date will be backdated (with arrears paid) to the earlier of the date you ceased employment or your Normal Retirement Age.

No, you can choose to take different parts of your pension benefits at different times.

For example, you may take your old tier and ZCashBuilder benefits now and take your final salary (ZPensionBuilder) benefits in 3 years’ time.

If you can and do take benefits before age 55 you have to take them all at the same time and stop working for the Company (this is a legislative requirement).

Normally you will have the option to either take the full amount of pension quoted or to give up some of your pension and take a lower pension but also have a cash lump sum. If you have ZCashBuilder, or other money purchase benefits, you can usually take all (or at least some) of this as your cash sum.

The online quotation facility allows you to model the pension/cash lump sum option in full.