Frequently Asked Questions (FAQs)

Defined Benefit members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in DB Online or completing and returning a Nomination Form. 

Defined Contribution members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in your Retirement Savings Account or completing and returning a Nomination Form.

You can ask us to provide you with a divorce cash equivalent transfer value by contacting us using your DB Online account, sending us an email or giving us a call. We'll send you all the information you need, which should be passed to the professional adviser who is dealing with your divorce, or direct to the Court.

We only provide one free divorce transfer value to active or deferred members in a 12 month period, so you may wish to consider this before requesting the quotation.

You need to note that your pension benefits can only be earmarked or shared once a valid court order has been issued – voluntary sharing of pension rights is not possible. Once you have the court order you will need to send this to us as soon as possible so that we can make sure your records are accurate.

Defined Contribution members

A charge will be deducted from your fund to cover the administration of the fund you are invested in.

Fund charges

Each of our funds has a differing charge so you may want to look at the detail on each of the DC fund factsheets, which share information about the charge alongside features. The charges are shown in the section named Total Expense Ratio (TER).

Transaction charges may also be payable in addition to the above, for example broker commission, stamp duty or the costs of buying and selling investments. These charges vary depending on a variety of factors including, the amount of money being switched on any one day.

Further details of the charges deducted from your fund are available on request. 

Our funds are listed on the fund factsheets page.

Setting up a pension from a Defined Contributions fund

When you draw your benefits, there may be charges for setting up a pension (or ‘annuity’) with another provider, as we do not pay pensions direct to members of Defined Contribution schemes.

Advice

You may want financial advice before taking your benefits and below are links to the government service (Moneyhelper) and a site which allows you to search for financial advisors in your area.

We can also pass your details to the Mercer Retirement Relationship Managers who may be able to help you. There is a charge for this service.

Defined Benefit members - Quotations

A charge would be applicable for additional quotations where a number of quotations have been provided over the previous 12 month period in certain circumstances. Outlined below are the numbers of each quote you are allowed free of charge in a 12 month period and the fee applicable for a further quote. Please note that the charges outlined below will also have VAT at 20% applied on top of the fee stated:

• 2 Retirement quotes – each additional quote fee £150
• 1 Benefit statement – each additional quote fee £150
• 1 Transfer quote – each additional quote fee £200 *
• 1 Divorce quote - each additional quote fee £200 *
• Application of a court order in a Divorce case - £2,200 to £3,000.

*Additional charges may apply if the transfer value is over £300,000. Fixed charges that cover our administration will apply if you divorce or end your civil partnership and your pension is shared with your former spouse or civil partner.

Defined Benefit members

Tax-free cash sum

You can give up part of your pension and exchange it for a tax-free cash sum. This will leave you with a smaller pension, which would have to be taken at the same time as the cash sum.

The maximum tax-free cash allowed will be included in your retirement quotation and you can take any amount you wish up to the maximum amount.

Small pot

You may be able to take taxable one off lump sum if the value of your benefits in the scheme including those under other memberships of the same scheme is less than £10,000, including benefits that have previously been taken.

The £10,000 value is for assessing eligibility, not the sum we would pay. The cash allowed will be included in your retirement quotation if this option is available to you.

Trivial commutation

You may be able to take a trivial commutation if the value of your benefits across all registered UK pensions schemes is less than £30,000, including benefits that have previously been taken. The £30,000 value is for assessing eligibility, not the sum we would pay. The cash allowed will be included in your retirement quotation if this option is available to you.

Defined Contribution members

You can take your fund as a one off lump sum where 25% would be tax free and 75% would be taxable.

When you leave your employer, or if you choose to leave the scheme while you are still employed, you will no longer pay contributions into the scheme. Your employer will let us know the date you left the scheme and send us your final contribution. We will then write to you with full details of your options.

Depending on your age and how long you were in the scheme, different options will be available to you:

Becoming a deferred member of the scheme

You can leave your benefits in the scheme and become a deferred member.

How long can I delay taking my pension?

Defined Benefit Scheme Members - your benefits can increase over time between leaving and retiring depending on your scheme and how long you were in this scheme.

Defined Contribution Scheme Members - your funds will be invested until you retire or transfer to another pension arrangement. If you want to see how your benefits might increase or how they're invested, check you member guide. 

Taking your benefits at retirement

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide. 

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information we'll send to you.

Leaving because of ill health

If you are leaving employment for ill health reasons, you may be able to apply to have your benefits paid early.

What if I'm too ill to work?

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme (service includes any service from other memberships you have with us and any transferred service from another pension into the scheme). 

If you can have a refund of contributions, it will be included in the information we send you. 

Transferring benefits

After you leave the scheme you might want to transfer your benefits to another suitable pension provider.

Internal transfer

If you join a new employer within 30 days of leaving your previous employer and your new employer offers a scheme we administer, you might be able claim continuous service under the scheme.

Re-joining the scheme with the same employer

You can re-join the scheme with the same employer if your employer and the Pensions Committee agree. You would re-join the arrangement that your employer currently offers which can be different from the section you were in before.

Auto enrolment

When you have left a scheme that you were auto-enrolled into, your employer is required to re-enrol you. The employer will re-enrol you on anniversary of their staging date, which is every three years. If you are re-enrolled then you can opt out again. 

If you’re an active member, you’ll receive a Benefit Statement each year, which will be accessible from your online account. This will be your Retirement Savings Account if you’re a Defined Contribution pension, or DB Online if you’re a Defined Benefit member.

We aim to issue statements close to the ‘statement date’ so you can see your benefits. We will also provide you with more information (normally twice a year) including a summarised version of our Annual Report and Accounts, updates on what we are doing and important pensions news, this is usually by email as it helps to reduce costs to your scheme and fits in with our values as an organisation.

For defined benefit schemes, there is a legal requirement to conduct a full funding review of the scheme every 3 years, with an interim funding update provided between full valuations. These are completed by the scheme Actuary. To keep members informed about the scheme’s funding position, Summary Funding Statements are issued to all members. These can be collected from the documents area of DB Online, or will be issued in paper form on request.

To provide any information about an individual’s membership, we need to have a valid ‘Letter of Authority’ (LOA) signed and dated by the member, which explains what the third party is authorised to gather necessary information about them. It will need to contain the following member details to allow us to have confidence that we are able to release the relevant information:

• their full name,
• their full address including their postcode,
• date of birth, and
• National Insurance number

Please scan and email the letter to: enquiries@tpt.org.uk or post it to: TPT Retirement Solutions, Verity House, 6 Canal Wharf, Leeds, LS11 5BQ so that we can hold it on our records and start the process of getting you the information you request. Please could you also note the members reference number(s) as this will help us when we set up our case(s).

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide.

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits.

If you can retire, the options open to you will be included in the information that we’ll send to you.

Active scheme members

If you are currently contributing into the scheme and want to retire, you need to let your employer know. They then send us a withdrawal form confirming your date of retirement. When we have received your withdrawal form from your employer, we send you options for your retirement.

Deferred scheme members

When you choose to retire you can contact us with the date you want to retire and we will send options to you.

Defined Contribution members

When you decide you want to retire, please contact us and we will send you details about your benefits. Please note that the process for paying benefits (especially for Active members) is involved and can take time so please give us plenty of notice if at all possible.

Advice

You may want to receive financial advice before taking your benefits, but be aware that there may be a charge for the time and expertise which is required. Visit the government's Moneyhelper site to search for financial advisers in your area. 

The choice of an Independent Financial Adviser is yours alone. TPT Retirement Solutions does not make recommendations about which Independent Financial Adviser you should use, and can accept no responsibility or liability for any advice which they may give.

We offer a service where your details can be given to the Mercer Retirement Relationship Managers who can help you. This service is not free and may not necessarily meet your needs, but if you would like details please let us know as soon as possible.

Defined Benefit members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in DB Online or completing and returning a Nomination Form. 

Defined Contribution members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in your Retirement Savings Account or completing and returning a Nomination Form.

You can ask us to provide you with a divorce cash equivalent transfer value by contacting us using your DB Online account, sending us an email or giving us a call. We'll send you all the information you need, which should be passed to the professional adviser who is dealing with your divorce, or direct to the Court.

We only provide one free divorce transfer value to active or deferred members in a 12 month period, so you may wish to consider this before requesting the quotation.

You need to note that your pension benefits can only be earmarked or shared once a valid court order has been issued – voluntary sharing of pension rights is not possible. Once you have the court order you will need to send this to us as soon as possible so that we can make sure your records are accurate.

When you leave your employer, or if you choose to leave the scheme while you are still employed, you will no longer pay contributions into the scheme. Your employer will let us know the date you left the scheme and send us your final contribution. We will then write to you with full details of your options.

Depending on your age and how long you were in the scheme, different options will be available to you:

Becoming a deferred member of the scheme

You can leave your benefits in the scheme and become a deferred member.

How long can I delay taking my pension?

Defined Benefit Scheme Members - your benefits can increase over time between leaving and retiring depending on your scheme and how long you were in this scheme.

Defined Contribution Scheme Members - your funds will be invested until you retire or transfer to another pension arrangement. If you want to see how your benefits might increase or how they're invested, check you member guide. 

Taking your benefits at retirement

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide. 

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information we'll send to you.

Leaving because of ill health

If you are leaving employment for ill health reasons, you may be able to apply to have your benefits paid early.

What if I'm too ill to work?

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme (service includes any service from other memberships you have with us and any transferred service from another pension into the scheme). 

If you can have a refund of contributions, it will be included in the information we send you. 

Transferring benefits

After you leave the scheme you might want to transfer your benefits to another suitable pension provider.

Internal transfer

If you join a new employer within 30 days of leaving your previous employer and your new employer offers a scheme we administer, you might be able claim continuous service under the scheme.

Re-joining the scheme with the same employer

You can re-join the scheme with the same employer if your employer and the Pensions Committee agree. You would re-join the arrangement that your employer currently offers which can be different from the section you were in before.

Auto enrolment

When you have left a scheme that you were auto-enrolled into, your employer is required to re-enrol you. The employer will re-enrol you on anniversary of their staging date, which is every three years. If you are re-enrolled then you can opt out again. 

If you’re an active member, you’ll receive a Benefit Statement each year, which will be accessible from your online account. This will be your Retirement Savings Account if you’re a Defined Contribution pension, or DB Online if you’re a Defined Benefit member.

We aim to issue statements close to the ‘statement date’ so you can see your benefits. We will also provide you with more information (normally twice a year) including a summarised version of our Annual Report and Accounts, updates on what we are doing and important pensions news, this is usually by email as it helps to reduce costs to your scheme and fits in with our values as an organisation.

For defined benefit schemes, there is a legal requirement to conduct a full funding review of the scheme every 3 years, with an interim funding update provided between full valuations. These are completed by the scheme Actuary. To keep members informed about the scheme’s funding position, Summary Funding Statements are issued to all members. These can be collected from the documents area of DB Online, or will be issued in paper form on request.

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide.

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits.

If you can retire, the options open to you will be included in the information that we’ll send to you.

Active scheme members

If you are currently contributing into the scheme and want to retire, you need to let your employer know. They then send us a withdrawal form confirming your date of retirement. When we have received your withdrawal form from your employer, we send you options for your retirement.

Deferred scheme members

When you choose to retire you can contact us with the date you want to retire and we will send options to you.

Defined Contribution members

When you decide you want to retire, please contact us and we will send you details about your benefits. Please note that the process for paying benefits (especially for Active members) is involved and can take time so please give us plenty of notice if at all possible.

Advice

You may want to receive financial advice before taking your benefits, but be aware that there may be a charge for the time and expertise which is required. Visit the government's Moneyhelper site to search for financial advisers in your area. 

The choice of an Independent Financial Adviser is yours alone. TPT Retirement Solutions does not make recommendations about which Independent Financial Adviser you should use, and can accept no responsibility or liability for any advice which they may give.

We offer a service where your details can be given to the Mercer Retirement Relationship Managers who can help you. This service is not free and may not necessarily meet your needs, but if you would like details please let us know as soon as possible.

If you are a deferred member (either you have left the scheme or your employment) then Benefit Statements are no longer automatically issued to you. You can request one in your DB Online account or contact us and we can provide one free statement per year. 

If you’re an active or paid-up member, an annual benefit statement will be produced for you each year. This will be uploaded to your DB Online account for you to view. You’ll receive an email when it’s available. If you’re struggling to get into your DB Online account, please contact us so we can help you. 

If there's medical evidence you're unable to work again in any capacity, your pension may be paid immediately, no matter how old you are.

If you sign into DB Online (if you are a member of a Defined Benefit scheme) your Retirement Savings Account (if you are a member of a Defined Contribution scheme) you will be able to request information on your eligibility for ill health early retirement.

If you do not use DB Online or your Retirement Savings Account, you can contact us directly. 

Defined Benefit members

If your application is approved, a reduction won't be applied to your pension benefits for early payment and you still have the option to take a tax-free lump sum. If your application for ill health early retirement is approved, we may need to periodically request updated medical evidence to ensure that you are still able to receive this benefit. If your circumstances change we could reduce or suspend your pension.

Check your member guide to see how your pension would be calculated if you retired because of health.

Serious Ill Health (Life expectancy less than 12 months)

If your life expectancy is less than 12 months, you could take your benefits as a tax-free, one-off payment. We would need evidence from a medical professional to confirm your life expectancy.

Defined Contribution members

If your application is approved, the current fund value would be paid to you no matter how old you are.

Employees who only hold a Defined Contribution (DC) benefit

Annual Benefit Statements are provided to all DC scheme members. This includes active members who are currently employed and making contributions to the Scheme, and past members who are no longer contributing but have a deferred benefit in the Scheme. The statement will be uploaded to the member’s own personal Retirement Savings Account for them to collect when it’s convenient. Dependent on the Scheme, Benefit Statements are issued to members between January and August each year. The DC Benefit Statement contains the following information:

• The member’s personal details and membership dates
• The contributions credited to the member’s savings pot by both the member and the employer during the last Scheme year. The contributions will be those that have been received and invested prior to the statement date. For example, if the statement date is 1 October, the statement would not normally include the October contributions as these would usually be received during November. Any contributions received or invested after the year-end will be included in the next year’s statement
• The value of the member's savings pot at the statement date (split between the investment funds)
• A Statutory Money Purchase Illustration (SMPI) of projected benefits. This is an illustration of the benefits that could be provided at the member's Selected Retirement Date assuming contributions continue at the current rate and uses specific assumptions for salary growth and investment return. Members should be aware that the value of investments may fall as well as rise and is not guaranteed.

Employees who have a Defined Benefit (DB) and a Defined Contribution (DC) benefit 

If any of your employees hold an active record which has both a Defined Benefit (DB) and a Defined Contribution (DC) element, they will also receive a separate annual DB Benefit Statement. This will detail the DB benefits the member is entitled to. The most recent benefit statement will be available on our DB Online system for the member to view. If the member has chosen to opt out of using the facility, the statement will be issued by post if requested by the member. The ‘Date Pensionable Service Commenced’ shown on the Defined Contribution (DC) statement will be the date the member joined the DC scheme and not the point at which they joined the scheme under the DB structure.

Employees who only hold a Defined Benefit (DB) in the scheme

The Annual Benefit Statement will be automatically uploaded to the DB Online system for active and paid up members to view when they want. Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. However, they can request one via DB Online, or contact us by telephone or email.

The dates statements are uploaded vary dependent upon the scheme that the member is in. Members will be notified that a new statement is online when they log into the system. Where members have chosen not to use the facility, they can request a copy of the statement to be sent to them.

The DB benefit statement contains the following information:

• The member’s personal details and membership dates
• Yearly pension at the statement date
• Death benefits

Defined Benefit members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in DB Online or completing and returning a Nomination Form. 

Defined Contribution members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in your Retirement Savings Account or completing and returning a Nomination Form.

When you leave your employer, or if you choose to leave the scheme while you are still employed, you will no longer pay contributions into the scheme. Your employer will let us know the date you left the scheme and send us your final contribution. We will then write to you with full details of your options.

Depending on your age and how long you were in the scheme, different options will be available to you:

Becoming a deferred member of the scheme

You can leave your benefits in the scheme and become a deferred member.

How long can I delay taking my pension?

Defined Benefit Scheme Members - your benefits can increase over time between leaving and retiring depending on your scheme and how long you were in this scheme.

Defined Contribution Scheme Members - your funds will be invested until you retire or transfer to another pension arrangement. If you want to see how your benefits might increase or how they're invested, check you member guide. 

Taking your benefits at retirement

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide. 

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information we'll send to you.

Leaving because of ill health

If you are leaving employment for ill health reasons, you may be able to apply to have your benefits paid early.

What if I'm too ill to work?

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme (service includes any service from other memberships you have with us and any transferred service from another pension into the scheme). 

If you can have a refund of contributions, it will be included in the information we send you. 

Transferring benefits

After you leave the scheme you might want to transfer your benefits to another suitable pension provider.

Internal transfer

If you join a new employer within 30 days of leaving your previous employer and your new employer offers a scheme we administer, you might be able claim continuous service under the scheme.

Re-joining the scheme with the same employer

You can re-join the scheme with the same employer if your employer and the Pensions Committee agree. You would re-join the arrangement that your employer currently offers which can be different from the section you were in before.

Auto enrolment

When you have left a scheme that you were auto-enrolled into, your employer is required to re-enrol you. The employer will re-enrol you on anniversary of their staging date, which is every three years. If you are re-enrolled then you can opt out again. 

If you’re an active member, you’ll receive a Benefit Statement each year, which will be accessible from your online account. This will be your Retirement Savings Account if you’re a Defined Contribution pension, or DB Online if you’re a Defined Benefit member.

We aim to issue statements close to the ‘statement date’ so you can see your benefits. We will also provide you with more information (normally twice a year) including a summarised version of our Annual Report and Accounts, updates on what we are doing and important pensions news, this is usually by email as it helps to reduce costs to your scheme and fits in with our values as an organisation.

For defined benefit schemes, there is a legal requirement to conduct a full funding review of the scheme every 3 years, with an interim funding update provided between full valuations. These are completed by the scheme Actuary. To keep members informed about the scheme’s funding position, Summary Funding Statements are issued to all members. These can be collected from the documents area of DB Online, or will be issued in paper form on request.

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide.

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits.

If you can retire, the options open to you will be included in the information that we’ll send to you.

Active scheme members

If you are currently contributing into the scheme and want to retire, you need to let your employer know. They then send us a withdrawal form confirming your date of retirement. When we have received your withdrawal form from your employer, we send you options for your retirement.

Deferred scheme members

When you choose to retire you can contact us with the date you want to retire and we will send options to you.

Defined Contribution members

When you decide you want to retire, please contact us and we will send you details about your benefits. Please note that the process for paying benefits (especially for Active members) is involved and can take time so please give us plenty of notice if at all possible.

Advice

You may want to receive financial advice before taking your benefits, but be aware that there may be a charge for the time and expertise which is required. Visit the government's Moneyhelper site to search for financial advisers in your area. 

The choice of an Independent Financial Adviser is yours alone. TPT Retirement Solutions does not make recommendations about which Independent Financial Adviser you should use, and can accept no responsibility or liability for any advice which they may give.

We offer a service where your details can be given to the Mercer Retirement Relationship Managers who can help you. This service is not free and may not necessarily meet your needs, but if you would like details please let us know as soon as possible.

If there's medical evidence you're unable to work again in any capacity, your pension may be paid immediately, no matter how old you are.

If you sign into DB Online (if you are a member of a Defined Benefit scheme) your Retirement Savings Account (if you are a member of a Defined Contribution scheme) you will be able to request information on your eligibility for ill health early retirement.

If you do not use DB Online or your Retirement Savings Account, you can contact us directly. 

Defined Benefit members

If your application is approved, a reduction won't be applied to your pension benefits for early payment and you still have the option to take a tax-free lump sum. If your application for ill health early retirement is approved, we may need to periodically request updated medical evidence to ensure that you are still able to receive this benefit. If your circumstances change we could reduce or suspend your pension.

Check your member guide to see how your pension would be calculated if you retired because of health.

Serious Ill Health (Life expectancy less than 12 months)

If your life expectancy is less than 12 months, you could take your benefits as a tax-free, one-off payment. We would need evidence from a medical professional to confirm your life expectancy.

Defined Contribution members

If your application is approved, the current fund value would be paid to you no matter how old you are.

Employees who only hold a Defined Contribution (DC) benefit

Annual Benefit Statements are provided to all DC scheme members. This includes active members who are currently employed and making contributions to the Scheme, and past members who are no longer contributing but have a deferred benefit in the Scheme. The statement will be uploaded to the member’s own personal Retirement Savings Account for them to collect when it’s convenient. Dependent on the Scheme, Benefit Statements are issued to members between January and August each year. The DC Benefit Statement contains the following information:

• The member’s personal details and membership dates
• The contributions credited to the member’s savings pot by both the member and the employer during the last Scheme year. The contributions will be those that have been received and invested prior to the statement date. For example, if the statement date is 1 October, the statement would not normally include the October contributions as these would usually be received during November. Any contributions received or invested after the year-end will be included in the next year’s statement
• The value of the member's savings pot at the statement date (split between the investment funds)
• A Statutory Money Purchase Illustration (SMPI) of projected benefits. This is an illustration of the benefits that could be provided at the member's Selected Retirement Date assuming contributions continue at the current rate and uses specific assumptions for salary growth and investment return. Members should be aware that the value of investments may fall as well as rise and is not guaranteed.

Employees who have a Defined Benefit (DB) and a Defined Contribution (DC) benefit 

If any of your employees hold an active record which has both a Defined Benefit (DB) and a Defined Contribution (DC) element, they will also receive a separate annual DB Benefit Statement. This will detail the DB benefits the member is entitled to. The most recent benefit statement will be available on our DB Online system for the member to view. If the member has chosen to opt out of using the facility, the statement will be issued by post if requested by the member. The ‘Date Pensionable Service Commenced’ shown on the Defined Contribution (DC) statement will be the date the member joined the DC scheme and not the point at which they joined the scheme under the DB structure.

Employees who only hold a Defined Benefit (DB) in the scheme

The Annual Benefit Statement will be automatically uploaded to the DB Online system for active and paid up members to view when they want. Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. However, they can request one via DB Online, or contact us by telephone or email.

The dates statements are uploaded vary dependent upon the scheme that the member is in. Members will be notified that a new statement is online when they log into the system. Where members have chosen not to use the facility, they can request a copy of the statement to be sent to them.

The DB benefit statement contains the following information:

• The member’s personal details and membership dates
• Yearly pension at the statement date
• Death benefits

Defined Contribution schemes

The scheme you are in will determine any payments should you die before taking any benefits. Please have a look at your scheme guide for further details of the death benefits that would be paid. Payments usually consist of a return of your fund value.

If your employer offers life cover, you are in employment and paying contributions at the date of death, an additional lump sum may be payable. You should note that the payment of death benefits is at the discretion of the Trustee. Under current legislation this means that they do not form part of your estate for inheritance tax purposes. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in your Retirement Savings Account or completing and returning a Nomination Form.

Once you have left your scheme, you may be able to transfer your benefits to another provider. To do this we will provide you with a Cash Equivalent Transfer value (CETV). This transfer value is the amount that would be paid to another pension scheme, and not to a personal bank account, and represents the calculated value of your benefits.

Defined Contribution members

The transfer value is the current fund value and is not guaranteed, because your fund value can go up or down depending on market conditions. You would not need a guaranteed transfer value in order to transfer your funds to another provider if you are only transferring Defined Contribution benefits. If you have signed into your Retirement Savings Account, you will be able to request a transfer quote of your benefits.

Defined Benefit members

The transfer value is based on a calculation of the value of your pension and factors provided by the scheme’s Actuary. A guaranteed CETV can be provided free of charge, however, if a second CETV is needed within a 12 month period, there would be an additional charge.

If you have signed into DB Online, you will be able to request a transfer quote of your benefits. If the transfer value is over £30,000, you’ll be required to get independent financial advice before you are able to make a transfer, but be aware that there may be a charge for the time and expertise required.

The Trustee will not be able to proceed with the transfer of any value of £30,000 or over unless this has been signed off by a regulated financial adviser with the required specialisms and expertise. Search for independent financial adviser in your area.

The choice of an Independent Financial Adviser is yours alone. TPT Retirement Solutions does not make recommendations about which Independent Financial Adviser you should use, and can accept no responsibility or liability for any advice which they may give.

We offer a service whereby your details can be given to the Mercer Retirement Relationship Managers who can help you. This service is not free and may not necessarily meet your needs, but if you would like details please let us know as soon as possible.

Defined Benefit members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in DB Online or completing and returning a Nomination Form. 

Defined Contribution members

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in your Retirement Savings Account or completing and returning a Nomination Form.

You can ask us to provide you with a divorce cash equivalent transfer value by contacting us using your DB Online account, sending us an email or giving us a call. We'll send you all the information you need, which should be passed to the professional adviser who is dealing with your divorce, or direct to the Court.

We only provide one free divorce transfer value to active or deferred members in a 12 month period, so you may wish to consider this before requesting the quotation.

You need to note that your pension benefits can only be earmarked or shared once a valid court order has been issued – voluntary sharing of pension rights is not possible. Once you have the court order you will need to send this to us as soon as possible so that we can make sure your records are accurate.

Defined Contribution members

A charge will be deducted from your fund to cover the administration of the fund you are invested in.

Fund charges

Each of our funds has a differing charge so you may want to look at the detail on each of the DC fund factsheets, which share information about the charge alongside features. The charges are shown in the section named Total Expense Ratio (TER).

Transaction charges may also be payable in addition to the above, for example broker commission, stamp duty or the costs of buying and selling investments. These charges vary depending on a variety of factors including, the amount of money being switched on any one day.

Further details of the charges deducted from your fund are available on request. 

Our funds are listed on the fund factsheets page.

Setting up a pension from a Defined Contributions fund

When you draw your benefits, there may be charges for setting up a pension (or ‘annuity’) with another provider, as we do not pay pensions direct to members of Defined Contribution schemes.

Advice

You may want financial advice before taking your benefits and below are links to the government service (Moneyhelper) and a site which allows you to search for financial advisors in your area.

We can also pass your details to the Mercer Retirement Relationship Managers who may be able to help you. There is a charge for this service.

Defined Benefit members - Quotations

A charge would be applicable for additional quotations where a number of quotations have been provided over the previous 12 month period in certain circumstances. Outlined below are the numbers of each quote you are allowed free of charge in a 12 month period and the fee applicable for a further quote. Please note that the charges outlined below will also have VAT at 20% applied on top of the fee stated:

• 2 Retirement quotes – each additional quote fee £150
• 1 Benefit statement – each additional quote fee £150
• 1 Transfer quote – each additional quote fee £200 *
• 1 Divorce quote - each additional quote fee £200 *
• Application of a court order in a Divorce case - £2,200 to £3,000.

*Additional charges may apply if the transfer value is over £300,000. Fixed charges that cover our administration will apply if you divorce or end your civil partnership and your pension is shared with your former spouse or civil partner.

When you leave your employer, or if you choose to leave the scheme while you are still employed, you will no longer pay contributions into the scheme. Your employer will let us know the date you left the scheme and send us your final contribution. We will then write to you with full details of your options.

Depending on your age and how long you were in the scheme, different options will be available to you:

Becoming a deferred member of the scheme

You can leave your benefits in the scheme and become a deferred member.

How long can I delay taking my pension?

Defined Benefit Scheme Members - your benefits can increase over time between leaving and retiring depending on your scheme and how long you were in this scheme.

Defined Contribution Scheme Members - your funds will be invested until you retire or transfer to another pension arrangement. If you want to see how your benefits might increase or how they're invested, check you member guide. 

Taking your benefits at retirement

If you are old enough, you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide. 

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your Retirement Savings Account (if you are a member of a Defined Contribution scheme), you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information we'll send to you.

Leaving because of ill health

If you are leaving employment for ill health reasons, you may be able to apply to have your benefits paid early.

What if I'm too ill to work?

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme (service includes any service from other memberships you have with us and any transferred service from another pension into the scheme). 

If you can have a refund of contributions, it will be included in the information we send you. 

Transferring benefits

After you leave the scheme you might want to transfer your benefits to another suitable pension provider.

Internal transfer

If you join a new employer within 30 days of leaving your previous employer and your new employer offers a scheme we administer, you might be able claim continuous service under the scheme.

Re-joining the scheme with the same employer

You can re-join the scheme with the same employer if your employer and the Pensions Committee agree. You would re-join the arrangement that your employer currently offers which can be different from the section you were in before.

Auto enrolment

When you have left a scheme that you were auto-enrolled into, your employer is required to re-enrol you. The employer will re-enrol you on anniversary of their staging date, which is every three years. If you are re-enrolled then you can opt out again. 

If you’re an active member, you’ll receive a Benefit Statement each year, which will be accessible from your online account. This will be your Retirement Savings Account if you’re a Defined Contribution pension, or DB Online if you’re a Defined Benefit member.

We aim to issue statements close to the ‘statement date’ so you can see your benefits. We will also provide you with more information (normally twice a year) including a summarised version of our Annual Report and Accounts, updates on what we are doing and important pensions news, this is usually by email as it helps to reduce costs to your scheme and fits in with our values as an organisation.

For defined benefit schemes, there is a legal requirement to conduct a full funding review of the scheme every 3 years, with an interim funding update provided between full valuations. These are completed by the scheme Actuary. To keep members informed about the scheme’s funding position, Summary Funding Statements are issued to all members. These can be collected from the documents area of DB Online, or will be issued in paper form on request.

To provide any information about an individual’s membership, we need to have a valid ‘Letter of Authority’ (LOA) signed and dated by the member, which explains what the third party is authorised to gather necessary information about them. It will need to contain the following member details to allow us to have confidence that we are able to release the relevant information:

• their full name,
• their full address including their postcode,
• date of birth, and
• National Insurance number

Please scan and email the letter to: enquiries@tpt.org.uk or post it to: TPT Retirement Solutions, Verity House, 6 Canal Wharf, Leeds, LS11 5BQ so that we can hold it on our records and start the process of getting you the information you request. Please could you also note the members reference number(s) as this will help us when we set up our case(s).

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme (service includes any service from other memberships you have with us and any transferred service from another pension into the scheme).

Defined Benefit members

The refund is the value of your contributions with interest (but not the employer's contributions). The refund that you take will be taxed. If you have transferred benefits from a Personal Pension plan, or if you have transferred in service from another pension scheme which takes your qualifying service over two years, you can't take a refund of your contributions.

If you were in the scheme before 6 April 2016, deductions from the refund include an amount that will buy you back into the Additional State Pension.

Defined Contribution members

You can have a refund of your contributions (but not any contributions made by your employer) if you have less than two years’ service and joined before 1 October 2015. However, if you joined on or after 1 October 2015, you would only receive a refund of your contributions if you left the scheme within 30 days of joining.

The refund is the value of the units purchased with your contributions (but not with employer's contributions). The refund that you take will have tax applied.

If there's medical evidence you're unable to work again in any capacity, your pension may be paid immediately, no matter how old you are.

If you sign into DB Online (if you are a member of a Defined Benefit scheme) your Retirement Savings Account (if you are a member of a Defined Contribution scheme) you will be able to request information on your eligibility for ill health early retirement.

If you do not use DB Online or your Retirement Savings Account, you can contact us directly. 

Defined Benefit members

If your application is approved, a reduction won't be applied to your pension benefits for early payment and you still have the option to take a tax-free lump sum. If your application for ill health early retirement is approved, we may need to periodically request updated medical evidence to ensure that you are still able to receive this benefit. If your circumstances change we could reduce or suspend your pension.

Check your member guide to see how your pension would be calculated if you retired because of health.

Serious Ill Health (Life expectancy less than 12 months)

If your life expectancy is less than 12 months, you could take your benefits as a tax-free, one-off payment. We would need evidence from a medical professional to confirm your life expectancy.

Defined Contribution members

If your application is approved, the current fund value would be paid to you no matter how old you are.

You can ask us to provide you with a divorce cash equivalent transfer value by contacting us using your DB Online account, sending us an email or giving us a call. We'll send you all the information you need, which should be passed to the professional adviser who is dealing with your divorce, or direct to the Court.

We only provide one free divorce transfer value to active or deferred members in a 12 month period, so you may wish to consider this before requesting the quotation.

You need to note that your pension benefits can only be earmarked or shared once a valid court order has been issued – voluntary sharing of pension rights is not possible. Once you have the court order you will need to send this to us as soon as possible so that we can make sure your records are accurate.

Defined Benefit members

If you take your benefits before Normal Pension Age they will be reduced because:

• You will have been a member of the Scheme for a shorter time.
• Pensions paid early are expected to be paid for longer.

Defined Benefit members who joined their scheme after April 2006

• can take their benefits at any time from age 55 subject to the scheme rules.

Defined Benefit members who joined their scheme before April 2006

• can take their benefits from age 50, subject to the scheme rules, but also have to have left the employment the benefits relate to.

Defined Contribution members

• can take their fund any time after the age of 55.

If you are a deferred member (either you have left the scheme or your employment) then Benefit Statements are no longer automatically issued to you. You can request one in your DB Online account or contact us and we can provide one free statement per year. 

If you’re an active or paid-up member, an annual benefit statement will be produced for you each year. This will be uploaded to your DB Online account for you to view. You’ll receive an email when it’s available. If you’re struggling to get into your DB Online account, please contact us so we can help you. 

The figure shown is based on the pension you have built up at the date shown on the statement and is payable from your Normal Retirement Date. These figures do not include reduction for early payment.

The pension at statement date shows the pension you have built up to this date using the information we hold at that point, and is based on the assumption that you commence taking your benefits at your Normal Retirement Date.

Annual Benefit Statements are issued to all active and paid-up members of the scheme. They will have this benefit statement uploaded to their personal DB Online account. When a new Benefit Statement is available they will be emailed to notify them of this. If a member is having issues accessing DB online, they need to contact the administration team who will be able to assist.

Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. They can request one in their DB Online account or contact us and we can provide one free statement per year. 

Employees who only hold a Defined Contribution (DC) benefit

Annual Benefit Statements are provided to all DC scheme members. This includes active members who are currently employed and making contributions to the Scheme, and past members who are no longer contributing but have a deferred benefit in the Scheme. The statement will be uploaded to the member’s own personal Retirement Savings Account for them to collect when it’s convenient. Dependent on the Scheme, Benefit Statements are issued to members between January and August each year. The DC Benefit Statement contains the following information:

• The member’s personal details and membership dates
• The contributions credited to the member’s savings pot by both the member and the employer during the last Scheme year. The contributions will be those that have been received and invested prior to the statement date. For example, if the statement date is 1 October, the statement would not normally include the October contributions as these would usually be received during November. Any contributions received or invested after the year-end will be included in the next year’s statement
• The value of the member's savings pot at the statement date (split between the investment funds)
• A Statutory Money Purchase Illustration (SMPI) of projected benefits. This is an illustration of the benefits that could be provided at the member's Selected Retirement Date assuming contributions continue at the current rate and uses specific assumptions for salary growth and investment return. Members should be aware that the value of investments may fall as well as rise and is not guaranteed.

Employees who have a Defined Benefit (DB) and a Defined Contribution (DC) benefit 

If any of your employees hold an active record which has both a Defined Benefit (DB) and a Defined Contribution (DC) element, they will also receive a separate annual DB Benefit Statement. This will detail the DB benefits the member is entitled to. The most recent benefit statement will be available on our DB Online system for the member to view. If the member has chosen to opt out of using the facility, the statement will be issued by post if requested by the member. The ‘Date Pensionable Service Commenced’ shown on the Defined Contribution (DC) statement will be the date the member joined the DC scheme and not the point at which they joined the scheme under the DB structure.

Employees who only hold a Defined Benefit (DB) in the scheme

The Annual Benefit Statement will be automatically uploaded to the DB Online system for active and paid up members to view when they want. Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. However, they can request one via DB Online, or contact us by telephone or email.

The dates statements are uploaded vary dependent upon the scheme that the member is in. Members will be notified that a new statement is online when they log into the system. Where members have chosen not to use the facility, they can request a copy of the statement to be sent to them.

The DB benefit statement contains the following information:

• The member’s personal details and membership dates
• Yearly pension at the statement date
• Death benefits

Defined Contribution schemes

The scheme you are in will determine any payments should you die before taking any benefits. Please have a look at your scheme guide for further details of the death benefits that would be paid. Payments usually consist of a return of your fund value.

If your employer offers life cover, you are in employment and paying contributions at the date of death, an additional lump sum may be payable. You should note that the payment of death benefits is at the discretion of the Trustee. Under current legislation this means that they do not form part of your estate for inheritance tax purposes. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in your Retirement Savings Account or completing and returning a Nomination Form.

Annual Benefit Statements are issued to all active and paid-up members of the scheme. They will have this benefit statement uploaded to their personal DB Online account. When a new Benefit Statement is available they will be emailed to notify them of this. If a member is having issues accessing DB online, they need to contact the administration team who will be able to assist.

Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. They can request one in their DB Online account or contact us and we can provide one free statement per year. 

Employees who only hold a Defined Contribution (DC) benefit

Annual Benefit Statements are provided to all DC scheme members. This includes active members who are currently employed and making contributions to the Scheme, and past members who are no longer contributing but have a deferred benefit in the Scheme. The statement will be uploaded to the member’s own personal Retirement Savings Account for them to collect when it’s convenient. Dependent on the Scheme, Benefit Statements are issued to members between January and August each year. The DC Benefit Statement contains the following information:

• The member’s personal details and membership dates
• The contributions credited to the member’s savings pot by both the member and the employer during the last Scheme year. The contributions will be those that have been received and invested prior to the statement date. For example, if the statement date is 1 October, the statement would not normally include the October contributions as these would usually be received during November. Any contributions received or invested after the year-end will be included in the next year’s statement
• The value of the member's savings pot at the statement date (split between the investment funds)
• A Statutory Money Purchase Illustration (SMPI) of projected benefits. This is an illustration of the benefits that could be provided at the member's Selected Retirement Date assuming contributions continue at the current rate and uses specific assumptions for salary growth and investment return. Members should be aware that the value of investments may fall as well as rise and is not guaranteed.

Employees who have a Defined Benefit (DB) and a Defined Contribution (DC) benefit 

If any of your employees hold an active record which has both a Defined Benefit (DB) and a Defined Contribution (DC) element, they will also receive a separate annual DB Benefit Statement. This will detail the DB benefits the member is entitled to. The most recent benefit statement will be available on our DB Online system for the member to view. If the member has chosen to opt out of using the facility, the statement will be issued by post if requested by the member. The ‘Date Pensionable Service Commenced’ shown on the Defined Contribution (DC) statement will be the date the member joined the DC scheme and not the point at which they joined the scheme under the DB structure.

Employees who only hold a Defined Benefit (DB) in the scheme

The Annual Benefit Statement will be automatically uploaded to the DB Online system for active and paid up members to view when they want. Deferred members (either because they have left the scheme or your employment) are no longer automatically issued with a benefit statement. However, they can request one via DB Online, or contact us by telephone or email.

The dates statements are uploaded vary dependent upon the scheme that the member is in. Members will be notified that a new statement is online when they log into the system. Where members have chosen not to use the facility, they can request a copy of the statement to be sent to them.

The DB benefit statement contains the following information:

• The member’s personal details and membership dates
• Yearly pension at the statement date
• Death benefits

Please telephone your normal contact at TPT Retirement Solutions as soon as you find out that a member has died. We will then talk you through what to do next.

For members who were in your employment when they died, we will need you to:

• Send the original death certificate (or a certified copy) to us as soon as it is available. It is not possible to pay any benefits until the death certificate has been received.
• Inform us if you are aware of any of the member's personal circumstances which may help us to determine the beneficiaries of any death benefit.
• For actively contributing members, we will need you to confirm when the member’s final contribution will be paid. When you submit the final contribution on our eBusiness system, you should also complete the Date of Leaving column. However, please don’t provide this until you have informed us of the member’s death. For Defined Benefit members we will also request that you complete and send a withdrawal form.

For members who have left your employment, we will request the contact details of the person who informed you of the member’s death. This will allow us to request the original death certificate (or a certified copy).

Once we receive the death certificate we will:

• Calculate the benefits payable. This will differ depending upon the scheme that your employee was a member of and also whether you provide life cover.
• Determine the beneficiaries for payment. The benefit is payable at the discretion of the Trustee and, as a result, under current legislation is excluded from a member's estate for Inheritance Tax purposes. The Trustee will consider any nomination(s) held on record along with any further information obtained regarding the member's personal circumstances.
• For pensioners we will stop any further payments. If the member has purchased an annuity, any benefits payable would be settled directly by their annuity provider. In this circumstance, if a retired member's family contact you they should be advised to contact the annuity provider directly. If they do not have the relevant details we will be able to advise them who the annuity provider is. 

Dependent on the scheme and also the life cover that's in place, a children’s pension may payable on a member’s death. As each scheme has different rules in relation to the payment of children’s pensions, please refer to your scheme information.

In the event of a member’s death, benefits are paid at the discretion of the Trustee. This means they are excluded from the member’s estate for inheritance tax purposes. To assist the Trustees and ensure that benefits are settled quickly, members of the Scheme should be encouraged to provide details of their nominations.

If your employee is a Defined Benefit member they can use the DB Online facility to nominate or amend their beneficiaries online, if they are Defined Contribution member, they will need to update their record in their Retirement Savings Account.

Employees who do not have access to either facility can complete a nomination form or notify us in writing of any changes. The changes must be provided in writing as the member's signature is needed. 

It is important that we keep our records up to date to ensure benefits are paid correctly. You need to let us know as soon as possible if an employee has left the pension scheme.

To do this you should:

• add a date of leaving in your monthly contribution submission
• pay across your last contribution as normal. If an employee leaves part way through the month, this should be for the portion of the month they are still employed
• not deduct contributions from holiday pay or a payment in lieu of notice as this is not pensionable.
• add a leaving date to the HR data file if the employee is leaving employment (if you use the HR Data application).

Once we have received the final contribution and the leaving information, we will update the member’s record and issue them with details of their benefits and options.

Please refer to our resources for employers for more information on how to add the date of leaving to your submission.

When a member leaves the scheme, we'll write to them and let them know what their benefits are in the scheme. The member may have the option to:

• leave their benefits in the scheme and become a deferred member.

For Defined Benefit members, the pension remains in the scheme and may increase each year. Further details on the rate of increases can be found in your scheme information. 

For Defined Contribution Scheme members, the employee’s fund will remain invested until we receive further instructions, for example when the member retires.

• transfer their benefits to another pension arrangement.

This transfer may be to another Occupational Pension Scheme, Personal Pension Plan, Stakeholder arrangement or Qualifying Recognised Overseas Pension Scheme. If the member wants to look into this option, they should ask their new pension provider to write to us.  

• Take a refund of contributions.

To take a refund of contributions employees must:

• have less than two years' total pensionable service. This includes any service in other memberships with TPT Retirement Solutions and from any previous scheme that has been transferred in.
• not be part of a salary sacrifice scheme.
• not have transferred in benefits from a personal pension plan.

In addition for Defined Contribution (DC) members:

• they must have joined before 1 October 2015 to be eligible for a refund
• DC members joining on or after 1 October 2015 will only receive a refund if they leave the scheme within 30 days of joining.

Refund payable to the member

For Defined Benefit members, this will be a refund of the employee contributions to the scheme (but not the employer’s) plus interest and less deductions including tax.

For Defined Contribution members, this will be the value of the units purchased with the employee contributions (but not their employer's), less deductions including tax.

The way you choose to take your pension benefits is an important decision and could affect your financial wellbeing for many years to come. Because of this, we recommend you get guidance or advice before making a decision. The following services may help you:

Money Helper is a free government service for people who are approaching or over minimum pension age. It provides face-to-face or over-the-phone advice on your options, including how to make the best use of your pension savings, the tax implications of different options and tips on getting the best deal. Call them on 0800 011 3797. 

The Money Advice Service is a free and impartial government service that provides money advice, tools and calculators for financial planning. Call them on 0800 138 77 77..

You may also seek Independent Financial Advice from an IFA. The choice of an Independent Financial Adviser is yours alone. TPT Retirement Solutions does not make recommendations about which Independent Financial Adviser you should use, and can accept no responsibility or liability for any advice which they may give.

Pension scams

Scammers are known to operate in the pensions industry. If any discussion or offer sounds too good to be true, it probably is. You can find out more about how to identify and avoid scams here and on the government's Pension Regulator website. 

It is necessary for certain personal data to be collected in order for us to provide you with your pension benefits.

Verity Trustees Limited (the “Trustee”) is the trustee of your pension scheme and is the data controller (where appropriate, with its subsidiary companies, TPT Retirement Solutions Limited and TPT Investment Management Limited) of any personal information for the purposes of applicable data protection law.

The Trustee (and, where applicable, the third parties it engages to assist it in the operation of your pension scheme) will use your personal data in the administration of your pension scheme. The Trustee takes appropriate measures to ensure that your personal data is held securely and processes personal data in accordance with relevant UK data protection law including the Data Protection Act 2018. 

For more information please have a look at our privacy policy.

Your information on DB Online is safe and secure. We use it for administering your pension only. We won't sell your data to any third party. Please keep us up-to-date with any changes to your personal circumstances, so we can ensure all information held is accurate.

An assignment is a legal term relating to real estate or contracts and is the process whereby one person transfers their rights or benefits to another. You cannot assign your pension to another party except where permitted by law on divorce, even temporarily, for example, as security for a loan.

Getting tax relief on pensions means some of your money that would have gone to the government as tax goes into your pension instead.

You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions. 

TPT Retirement Solutions needs your employer’s payroll to deduct your contributions from your gross pay.

Gross pay is the amount your employer is paying you before any tax has been deducted and you will be able to see this on your payslip.

This means that your pay after the deduction of pension contributions will be lower and you will pay less tax (tax relief on your contributions). This is sometimes known as a Net Pay arrangement and for most members avoids the process of having to make a claim with HMRC.

Employer contributions are paid in addition to your contributions, and you will not be required to pay tax or National Insurance on your employer’s contribution.

For the majority of members this is a straightforward way to benefit from tax relief. Members who do not pay income tax will not get any benefit from tax relief under this arrangement.

There is no limit on the amount you can pay into your pension scheme. However the Annual Allowance is the maximum amount of total pension savings that you can have each year that benefit from tax relief. 

Income tax allowances

Income tax allowances detail the amount of income you receive before you start paying tax. Tax allowances are set by the government and you can check your own personal allowance directly with HMRC (HM Revenue & Customs). Information on general income tax allowances can be found at www.hmrc.gov.uk  although your own tax allowance may be different based on your own circumstances. 

If you are an active member of the scheme and pay tax on your income you will receive tax relief on your contributions. This means no tax is paid on the contributions deducted from your total pay before any tax is deducted by your employer. This is known as a Net Pay arrangement. If you do not pay income tax, you will be unable to benefit from tax relief. If you are a pensioner you may want to look at the following information - Why has tax been deducted from my pension?

Annual Allowance

The Annual Allowance is a limit on the total amount of pension savings you can make each year without incurring a tax charge. It applies to all your pension schemes in total, not individually.

• The limit for the current tax year (2023/24) is £60,000. This includes all your contributions, tax relief and employer contributions across all the pension arrangements you have.
• If your income is over £260,000 in a tax year, your Annual Allowance for that year will reduce on a tapered basis. For every £2 of adjusted income above £260,000, your Annual Allowance will reduce by £1. The maximum reduction is £30,000, meaning anyone with an income of £310,000 or above will have their Annual Allowance reduced to £10,000. 

Please see What is Tapered Annual Allowance? for further details.

if you have cashed-in a Defined Contribution (DC) pension pot i.e. taken more than the 25% tax free lump sum or you are drawing down an income from a 'flexi-access drawdown fund', the limit for future DC contributions will be reduced to £10,000, which is known as the 'Money Purchase Annual Allowance' (MPAA), for any DC contributions you make. 

This applies if you want to continue making pension savings in a DC pension arrangement. If you also have Defined Benefits (DB) with your current employer, the MPAA reduces the Annual Allowance for your DB benefits to a maximum of £50,000. The MPAA only applies to contributions to DC pensions and not to defined benefit schemes. Please consider taking independent financial or tax advice if this applies to you.

Exceeding the Annual Allowance

If you exceed the Annual Allowance in a tax year, you won't receive tax relief on any contributions that are above the limit and you will have to pay an Annual Allowance charge.

You may be able to use any leftover Annual Allowance from the previous three tax years to reduce or cancel the Annual Allowance charge if you did not use your full Annual Allowance in those years. This does not apply if you have a Money Purchase Annual Allowance.

The Annual Allowance charge will be added to the rest of your taxable income for the tax year in question, and used to work out your tax liability. If the Annual Allowance charge is more than £2,000, you can ask your pension scheme to pay the charge from your benefits. Your pension scheme benefits would be reduced accordingly to take account of the charge.

Lifetime Allowance

The Lifetime Allowance did place a tax limit on the tax-relieved pension savings you can receive during your lifetime. If you exceed this limit tax charges apply. The limit for 2021/22 was £1.073. If the total value of all your tax-relieved pension arrangements did go above the Lifetime Allowance, you will be taxed on any amount above this.

At Spring Budget 2023, the government announced that it would abolish the LTA with effect from 6 April 2024 but that there will be no lifetime allowance charge in tax year 2023/24.

Both the Annual (and previous Lifetime Allowances) will generally tend to affect those with fairly high earnings and/or significant pension benefits held elsewhere. When TPT provides you with quotes or statements, we will let you know what percentage of your Lifetime Allowance has been used up in the statements up to 6th April 2023. You should note that TPT Retirement Solutions and its representatives are not permitted to give financial advice.

If you are a member of a Defined Contribution pension scheme, the value of your pension savings (also called your Pension Input Amount) is the total of both you and/or your employer’s pension contributions made in the year.

If you are a member of a Defined Benefit pension scheme the calculation is more complicated. The increase in the value of your retirement benefits each year is your Pension Input Amount, and is used to calculate how much of your Annual Allowance is used up by the scheme that year. If you have a promotion or a significant salary increase you may be at risk of exceeding the Annual Allowance.

The Annual Allowance

Your Annual Allowance is a limit on the total amount of pension savings you can make each year without incurring a tax charge. It applies to all your pension schemes in total, not individually.

The Annual Allowance limits were updated as part of the 2023 Spring Budget and became effective on 6 April 2023 as follows:

• The limit for the current tax year (2023/24) is £60,000. This includes all your contributions, tax relief and employer contributions across all the pension arrangements you have.
• If your income is over £260,000 in a tax year, your Annual Allowance for that year will reduce on a tapered basis. For every £2 of adjusted income above £260,000, your Annual Allowance will reduce by £1. The maximum reduction is £30,000, meaning anyone with an income of £310,000 or above will have their Annual Allowance reduced to £10,000. 

The Money Purchase Annual Allowance

If you’ve cashed in a Defined Contribution (DC) pension, i.e. taken more than the 25% tax free lump sum or you are drawing down an income from a 'flexi-access drawdown fund', the limit for future DC contributions will be reduced to £10,000, which is known as the ‘Money Purchase Annual Allowance’ (MPAA) for any DC contributions you make. 

This applies if you want to continue making pension savings in a DC pension arrangement. 

If you also have defined benefits (DB) with your current employer, the MPAA reduces the Annual Allowance for your DB benefits to a maximum of £50,000. The MPAA only applies to contributions to DC pensions and not to DB schemes. 

Please consider taking independent financial or tax advice if this applies to you.

What if I exceed my Annual Allowance?

If you exceed the Annual Allowance in a tax year, you won't receive tax relief on any contributions that are above the limit, and you’ll have to pay an Annual Allowance charge.

You may be able to use any leftover Annual Allowance from the previous three tax years to reduce or cancel the Annual Allowance charge if you did not use your full Annual Allowance in those years. This does not apply if you have a Money Purchase Annual Allowance (MPAA).

The Annual Allowance charge will be added to the rest of your taxable income for the tax year in question and used to work out your tax liability. If the Annual Allowance charge is more than £2,000, you can ask your pension scheme to pay the charge from your benefits. Your pension scheme benefits would be reduced accordingly to take account of the charge.

Changes to tax allowances from 6 April 2024

The Government made some changes last year which will come into effect on 6 April 2024. We understand that these changes can seem complicated, but please note the vast majority of members will not be impacted by these changes or the limits. The changes concern the Lump Sum Allowance (LSA) and the Lump Sum and Death Benefit Allowance (LSDBA) that come into effect on 6 April 2024 under the Finance Act 2024.  

These allowances replace the Lifetime Allowance (LTA) which was introduced in 2006 and put a limit on the amount of pension you could accrue before potential tax implications would arise.

From 6 April 2024 the maximum tax free cash available from all pension benefits is restricted to £268,275.00 (the LSA).  The LSDBA will be set at £1,073,100, any benefits over this amount will be subject to a tax charge. These new allowances will be adjusted where individuals have one of the existing lifetime allowance protections. 

If you have previously taken retirement benefits before 6 April 2024 or from another membership within the scheme or from a different scheme, these benefits will need to be taken into account when calculating your available LSA and LSDBA allowances.

Further information will be provided to you in any retirement illustrations you receive and upon request.

Tapered Annual Allowance largely affects higher earners.

To work out if you have a Tapered Annual Allowance, you need to assess your net income in the tax year in question, your pension savings in that year, the threshold income in the tax year (taxable income for the tax year less any taxable lump sum pension death benefits accruing in the tax year plus employment income given up for pension contributions, i.e. salary sacrifice) and your adjusted income (adds in the value of all employer pension contributions) in the tax year.

As soon as your threshold income exceeds £200,000, your allowance reduces by £1 for every £2 your adjusted income rises above £260,000. The minimum this can taper to is £10,000. So, if your adjusted income for the current tax year is £290,000 - thus exceeding the minimum limit by £30,000 - your annual allowance would drop £15,000 (£30,000/2) to £45,000.

If your employer withdraws from the scheme, you will stop contributing into the scheme at the same time and you will become a 'deferred' member.

You will normally be entitled to the same benefits as if you had left the scheme on the same day as the withdrawal, as long as TPT has received all of the necessary contributions from your employer. 

If you have a problem or complaint in connection with your pension, please contact us as soon as possible so that we can help. 

If we cannot resolve your issue, please email, call or write to one of the managers listed below providing details of your problem:

For any Defined Contribution (DC) scheme:

TPT Administration at Mercer, Maclaren House, Talbot Road, Stretford, Manchester, M32 0FP 

Email: alison.broughton@tpt.org.uk 

For any other scheme:

Matthew Doggett, Head of Pensions Administration, TPT Retirement Solutions, Verity House, 6 Canal Wharf, Leeds, LS11 5BQ

Email: matthew.doggett@tpt.org.uk 

If after you receive a response from the manager you are still unhappy, you may follow the formal two-stage complaints procedure which is summarised below:

Stage one

Please ensure that any correspondence is addressed to the Trustee Services Director at TPT and states clearly in the heading that you wish to exercise your right under the Trustee’s dispute resolution procedure. You should provide your name, membership number and as much detail about the reason for your complaint as possible. 

This is the first stage of the Pensions Act’s dispute procedure and is your legal right.

A decision should be given to you within two months.

You can get help with your complaint from The Pensions Ombudsman’s Early Resolution Team - see below. 

Stage two 

If you remain unhappy with the Stage 1 response, you have the right to appeal within six months to the Trustee. An appeal must be made in writing and must state the reasons for being dissatisfied with the previous decision. This is the second stage of the procedure. A decision from the Trustee should be given within two months. 

The Pensions Ombudsman

The Pensions Ombudsman is appointed to deal with complaints against, and disputes with, occupational and personal pension schemes. The Ombudsman is completely independent and acts as an impartial adjudicator and may investigate and determine any complaint or dispute of fact or law in relation to a scheme. The Ombudsman will not normally consider any complaint until the internal dispute procedure is completed, and may ask that you first refer your case to the Early Resolution Team (see above for details). 

The Pensions Ombudsman, 10 South Colonnade, Canary Wharf, E14 4PU

Tel: 0800 917 4487

enquiries@pensions-ombudsman.org.uk 

MoneyHelper  

Please note that MoneyHelper is a free resource where you can get assistance with pension matters and other choices which may affect your financial wellbeing. MoneyHelper can assist pension scheme members and other beneficiaries by answering questions and providing guidance in connection with their pension benefits, including where a person is having difficulties in relation to their pension scheme. Further information is available from the MoneyHelper website. 

Contact details: Tel: 0800 011 3797

From overseas: +44 20 7932 5780

https://www.moneyhelper.org.uk/en/pensions-and-retirement 

If you have a problem or complaint in connection with the pension scheme or its administration, we would ask that you speak to your regular contact at TPT as soon as possible so we can look to resolve the matter with you. If we are unable to resolve your issue you will need to write to the Head of Employer Relationships at TPT providing details:   

Fran Marsden, Head of Client Relations, TPT Retirement Solutions, Verity House, 6 Canal Wharf, Leeds, LS11 5BQ

Email: fran.marsden@tpt.org.uk

If you feel that the Head of Client Relations has not resolved your problem and you remain dissatisfied, you may follow the formal two-stage complaints procedure.

Stage one

You can write to (making sure your correspondence is headed ‘Formal Complaint’):

Karen Parry, Trustee Services Director, TPT Retirement Solutions, Verity House, 6 Canal Wharf, Leeds, LS11 5BQ   

Email: karen.parry@tpt.org.uk

Please provide your name, employer number and as much detail about the reason for your complaint as possible. A decision should be given to you within two months.

Stage two

If you remain unhappy with the formal resolution of the Trustee Services Director, you have the right to appeal within six months to the Trustee. An appeal must be made in writing and must state the reasons for being dissatisfied with the previous decision. A decision from the Trustee should be given within two months.

Occupational pension schemes such as those administered by TPT are set up under a legal structure known as a trust. Each scheme has trustees appointed who are ultimately responsible for looking after their members’ pensions.

Verity Trustees Limited (the “Trustee”) is the trustee appointed to look after your pension. The Trustee currently has nine directors – four nominated by the members, four nominated by the employers, and a professional independent trustee who is co-opted by the other directors and acts as the chair of the trustee board.

The Trustee has no shareholders and is established as a company limited by guarantee. It operates solely for, and is answerable to, the beneficiaries of its pension schemes.

The Trustee employs a number of specialist advisers and service providers to assist it in looking after your pension.

TPT Retirement Solutions Limited (the “Administrator”) carries out the day-to-day administration of your pension scheme on behalf of the Trustee (for example, collecting contributions and paying benefits). The Administrator is a wholly owned subsidiary of the Trustee and employs over 200 staff who are dedicated to looking after your pension.

Neither the Trustee nor the Administrator is registered under the Financial Services and Markets Act to give financial advice. Any information that is provided to members or prospective members should therefore be taken to constitute information and not be taken to constitute advice. When providing information to members or prospective members, we take care to provide an accurate service but all decisions and choices which are made remain the responsibility of the individual, for which neither the Trustee nor the Administrator cannot be responsible.

Our ownership

TPT Retirement Solutions Limited is wholly owned by Verity Trustees Limited in its capacity as trustee of The Pensions Trust.

TPT Investment Management Limited is a wholly owned subsidiary of TPT Retirement Solutions Limited.

Group services and regulation

Verity Trustees Limited is the corporate trustee of The Pensions Trust and The Pensions Trust 2016. It is a company limited by guarantee and is regulated by The Pensions Regulator.

TPT Retirement Solutions Limited provides pension management and administration services to UK pension schemes.

TPT Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FCA) and provides investment management and consultancy services to UK pension schemes.

The Employer Portal is a hub that allows our employers to access the following systems in one place:

• eBusiness
• HR Data
• Financial assessment questionnaire
• FRS 102 (DB accounting)
• FRS 102 (present value).

Depending on the type of scheme you have and the permissions set by your organisation, you may not need access to all of the above applications.

If you need any assistance logging in, please contact the Employer Support team on 0113 394 2770 or employerportal@tpt.org.uk 

If you need any assistance logging in, please contact the Employer Support team on 0113 394 2770 or email  employerportal@tpt.org.uk.

Please email employercontactdata@tpt.org.uk confirming the details of the person you want to add to the employer portal, as follows:

• name
• job title
• direct telephone number
• email address that only they have access to
• the applications they need access.

We will set up the new user and issue login details to them by email within 10 working days.

If you need any assistance, please contact the Employer Support team on 0113 394 2770 or employerportal@tpt.org.uk 

To change the applications that users have access to on the Employer Portal, please email employercontactdata@tpt.org.uk confirming the user’s full name, e-mail address and the changes you wish to make.

We will update the user account as soon as possible.

If you need any assistance, please contact the Employer Support team on 0113 394 2770 or employerportal@tpt.org.uk