CONTRIBUTING MEMBERS

You can currently choose to retire at any time from age 55*, provided you have at least five years' service, but your pension and your lump sum will be reduced to take account of the fact that they are being paid early.

* Please note, the minimum retirement age is rising to 57 from April 2028. However, if your pensionable service in the Group commenced before 4 November 2021 you will retain a protected minimum retirement age of 55.

Your normal pension age is 63 if you joined the Scheme after 1 April 1988. If you joined before 1 April 1988 and were in continuous employment until 17 May 1990, your normal pension age is 60 with the right to carry on working.

If you carry on working after normal pension age, you will build up extra years of contributing service up to a maximum of 45 years.

If your normal pension age is 63, you will be required to pay contributions for the extra pensionable service you build up after age 63. If your normal pension age is 60, no further contributions are payable if you work after age 60, but you will still build up extra pensionable service.

The Lifetime Allowance tax charge in respect of savings in excess of the Lifetime Allowance was removed from April 2023 (with individuals taxed at their marginal tax rates instead) and ended on 5 April 2024.

From 6 April 2024, the Lifetime Allowance was replaced by two new allowances which generally work as follows:

• The Lump Sum Allowance (LSA)
  A cumulative maximum limit of £268,275 (i.e. 25% of the 2023/2024 Lifetime Allowance) on the amount of tax-free lump sum payable on retirement.
• The Lump Sum and Death Benefits Allowance (LSDBA)
  A cumulative limit of £1,073,100 (i.e. the 2023/2024 LTA) on the tax-free elements of lump sums that can be paid in life and death, to or in respect of an individual.

The new allowances are overall allowances that apply across all of your registered pension arrangements. If any cash lump sums that you take or that are paid on your death exceed either of the new allowances, the recipient will be taxed at their marginal rate of Income Tax.

If you think these changes will affect you or if you’ve applied for and hold any valid HMRC tax free lump sum protections, you should take financial advice from an FCA regulated adviser. You can find one in your local area by visiting the following website: https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/lifetime-allowance-for-pension-savings – please bear in mind you will need to pay for any regulated advice.