Trustee updates factors from 1 October 2015
From time to time the Trustee carries out a formal review of the actuarial factors which are used to calculate certain pension benefits. Such a review has recently been completed and the Trustee has decided to update the actuarial factors with effect from 1 October 2015. If you are retiring before 1 October 2015, this will not affect the retirement amounts provided to you. If you have already requested to retire on or after 1 October 2015 your pension benefits will automatically be calculated on the new factors for your selected retirement date. Depending on the options you have selected, the change in factors is expected to result in either no change or a small uplift to your benefits.
The terms on which pension benefits are calculated are reviewed regularly by the Trustee and will continue to change from time to time.
Please note that if you receive improved benefits (relative to those in your quote before 1 October 2015) as a result of the change to actuarial factors then this may impact your tax position in relation to the annual or lifetime allowances. If you think you may be in this position and wish to reconsider your retirement choices as a result, please contact Peopleline on 0800 731 1919. Please remember that when considering your tax position in relation to the annual or lifetime allowance you must take into account all your pension arrangements and not just your BTPS benefits.
For more information on the current lifetime and annual allowances and details of the changes announced in the Summer Budget, please see the government website https://www.gov.uk/tax-on-your-private-pension/overview”