When you retire at Normal Pension Age, you will receive a pension in respect of your contributions to the Investment Related Section and the Pay Related Section (as appropriate) as follows:

Investment Related Section

Your Pension Account will be used to purchase an annuity from the insurance company of your choice and you will be able to choose what pension increases and death benefits you wish to include, according to the options offered by the insurance company.

If you do not make a choice, the Trustee may either purchase an annuity from the insurance company of its choice or, with the Company’s consent, provide you with a pension from the Scheme.

Pay Related Section

When you retire, the total of the percentages of your Final Pensionable Salary that you have bought each year and your Final Pensionable Salary will be calculated in order to work out your pension.

For example, if you have built up a total of 10% and your Final Pensionable Salary is £12,000 your annual pension will be:

10% x 12,000 = £1,200

Your pension will be provided out of the Scheme. On retirement, you may choose to take a lower pension and provide for the pension to continue to a dependant at the rate of 50% after your death.

© Clarks Pensions 2014