LIFETRACK
Your benefits
Retirement options
The Main Section is a defined benefit pension arrangement which means that your benefits at retirement are calculated based on your Pensionable Salary and years of Contributing Service.
It offers an income for life which is adjusted each year for inflation, and a lump sum. You can read more about this on the Information for retired and dependant members page.
Taking your benefits at your Normal Pension Age - Contributing Members
You can choose to leave employment and take your benefits at your Normal Pension Age. Your Normal Pension Age is age 63 or,
if you are a Pre-1988 Member, age 60.
if you are a Pre-1988 Leaver, age 60 if you are female and age 65 if you are male.
If you decide to take your benefits at your Normal Pension Age you are entitled to:
An annual pension of 1/80th of your Pensionable Salary for each year of your Contributing Service.
(Pensionable Salary x Contributing Service) / 80 = Annual Pension
In addition to your annual pension, a one-off cash lump sum of 3/80ths of your Pensionable Salary for each year of your Contributing Service, i.e. three times the amount of your annual pension. Under current laws, the lump sum is normally paid tax free.
Example of benefits at Normal Pension Age
Anthony has 30 years Contributing Service and chooses to take his benefits at his Normal Pension Age. This Pensionable Salary is £50,000.
His benefits at Normal Pension Age are:
Annual pension:
(£50,000 x 30) / 80 = £18,750
Lump sum:
3 x (£50,000 x 30) / 80 = £56,250
You have the option to give up part or all of your cash lump sum to increase your pension or the pension payable to your dependants when you die.
You also have the option to give up some of your pension to increase your lump sum (subject to a maximum imposed by HMRC) based on a conversion rate approved by the Principal Employer. If you have paid additional voluntary contributions (AVCs), you may be able to use these to reduce the amount of the pension you give up to increase your lump sum.
For more information about these options, please contact the Administrator of RWE Group, WTW.
Taking your benefits at Normal Pension Age – Deferred Members
If you decide to take your benefits at your Normal Pension Age you are entitled to an annual pension and lump sum calculated in the same way as for Contributing Members who take their benefits at Normal Pension Age and based on your Pensionable Salary and Contributing Service at the date you stopped being a Contributing Member. The amount of your annual pension and lump sum will be increased for inflation in the same way as pensions in payment for the period from the date you stopped being a Contributing Member to the date you take your benefits.
Read more about:
Taking your benefits before Normal Pension Age
Show allIf you are a Contributing Member
Please note: The earliest age from which you can normally take your benefits will increase from age 55 to age 57 with effect from 6 April 2028.
Choosing to take your benefits before your Normal Pension Age
If you are age 55 or older, you can choose to leave employment and take your benefits early on a reduced basis with the consent of your Employer. Your benefits will be calculated in the same way as if you took your benefits at Normal Pension Age (based on your Pensionable Salary and Contributing Service at the date you take your benefits early, rather than at your Normal Pension Age) and will be reduced to reflect that they are being paid early.
Leaving employment before Normal Pension Age due to redundancy/reorganisation
If you are age 50/55 (depending on when you joined the Main Section) or older and you leave your employment due to redundancy or reorganisation, you can choose to take your benefits early on a reduced basis. Your benefits will be calculated in the same way as if you took your benefits at Normal Pension Age (based on your Pensionable Salary and Contributing Service at the date you take your benefits early, rather than at your Normal Pension Age) and will be reduced to reflect that they are being paid early.
Pre-1997 Members: Your benefits are payable as described directly above, however they will be unreduced.
Taking your benefits before Normal Pension Age due to ill-health
You may be able to leave employment and take your benefits at any age on ill-health grounds. Your benefits will be calculated in the same way as if you took your benefits at Normal Pension Age and as if you had remained a Contributing Member until your Normal Pension Age. There is no reduction for early payment.
You will be able to take your benefits early on ill-health grounds if, in the opinion of the RWE Group’s medical adviser, you are not able to continue with your current occupation (or any other duties which your Employer may reasonably assign to you) because of a physical or mental medical condition.
Pre-1988 Members: Your benefits will be calculated on the basis that you remained a Contributing Member until age 65.
If you take your benefits early on the grounds of ill-health and your health or earnings capacity improve before you reach your Normal Pension Age, the Group Trustees can suspend or terminate your pension.
If your health is impacted so severely that, in the opinion of the RWE Group’s medical adviser, your life expectancy is less than a year, you may be able to take all your benefits as one lump sum (subject to meeting certain conditions imposed by HMRC).
Read more about:
If you are a Deferred Member
Please note: The earliest age from which you can normally take your benefits will increase from age 55 to age 57 with effect from 6 April 2028.
Choosing to take your benefits before Normal Pension Age
If you are age 55 or older, you can choose to take your benefits early on a reduced basis with the consent of the Principal Employer. Your benefits will be calculated in the same way as if you took them at Normal Pension Age and will be reduced to reflect that they are being paid early.
Leaving employment before Normal Pension Age on redundancy/reorganisation
If you left the employment of your Employer due to redundancy and/or reorganisation and were not eligible to take your benefits early at that time, you may choose to take your benefits early on a reduced basis from age 50/55 (depending on when you joined the Main Section and when you left employment). Your benefits will be calculated in the same way as if you took your benefits at Normal Pension Age and will be reduced to reflect that they are being paid early.
Pre-1997 Members: Your benefits are payable as described directly above, however they will be unreduced.
Taking your benefits before Normal Pension Age due to ill-health
You may be able to take your benefits at any age on ill-health grounds on a reduced basis if you worked for your Employer for at least 5 years. Your benefits will be calculated in the same way as if you took your benefits at Normal Pension Age and will be reduced to reflect that they are being paid early.
You will be able to take your benefits early on ill-health grounds if, in the opinion of the RWE Group’s medical adviser, you are not able to continue with your occupation (or any other work that your employer may reasonably offer you) because of a physical or mental medical condition.
If you take your benefits early on the grounds of ill-health and your health or earnings capacity improve before you reach your Normal Pension Age, the Group Trustees can suspend or terminate your pension.
If your health is impacted so severely that, in the opinion of the RWE Group’s medical adviser, your life expectancy is less than a year, you may be able to take all your benefits as one lump sum (subject to meeting certain conditions imposed by HMRC).
Read more about:
Taking your benefits after Normal Pension Age
Show allIf you are a Contributing Member
So long as you remain in employment you can continue as a Contributing Member past your Normal Pension Age if you wish to do so. When you take your benefits, they will be calculated in the same way as if you took them at Normal Pension Age (based on your Pensionable Salary and Contributing Service at the later date you take you benefits, rather than at your Normal Pension Age).
If you are a Deferred Member
There is no option to postpone payment of your pension beyond Normal Pension Age.
Pre-1988 Members: You can postpone payment up to age 63. Your benefits will be calculated in the same way as if you took your benefits at Normal Pension Age. They will be increased to reflect that they are being paid late.
Small pensions
If the value of your benefits under the RWE Group is less than an amount set by HMRC, or the overall value of your pension benefits under all the pension schemes you are or were a member of is less than an amount set by HMRC, you may be able to give up your right to a pension under the RWE Group in return for a one-off lump sum payment. For further details, please contact the Administrator of RWE Group, WTW. Visit the contact page for WTW’s details.
Disclaimer
This guide is a summary of the main provisions of the RWE Group relevant to you and your benefits. It is not, and is not intended to be, a summary of every detail of the RWE Group or to cover every set of circumstances.
The RWE Group’s detailed benefit provisions are set out in its formal governing documents, the trust deed and rules. This guide summarises the benefits provided by the RWE Group and its related provisions. Whilst every effort has been made to summarise the benefits and provisions of the RWE Group accurately, if there are any differences between this guide and the trust deed and rules, the trust deed and rules (as amended from time to time) will apply and override the terms of this guide.
This guide is dated January 2025. Every effort has been made to ensure the guide is up to date and accurate at the time of writing, however, subsequent changes to the RWE Group’s governing documents, applicable legislation and/or the tax regime may consequently affect its accuracy or completeness.