Benefits

Members establish a pension to provide pension benefits for retirement.

Members can start to take benefits once they turn 55, the current Normal Minimum Pension Age, (raising to 57 in April 2028).

There are a number of options available for members to receive funds from the scheme:

• Flexi Access Drawdown – a member may take 25% of the fund as a Pension Commencement lump Sum (PCLS), the balance of funds will remain invested and available for income which will be paid with tax deducted at the members marginal tax rate.
• Phased Drawdown – this is when a member chooses to crystalise a set amount of their scheme. Once the PCLS is paid the member will have two pots, Uncrystallised, (the fund where PCLS remains available), and Crystalised (the fund available for income after the selected PCLS has been paid from the scheme.).
• Uncrystallised Fund Lump Sums (UFPLS), a member selected to use all or some of the fund to receive a lump sum from the scheme in the form of a payment of PCLS and income at the same time. For example, if a member chose to take a UFPLS of £1000.00, £250 would be paid tax free and the balance of £750 2ould be paid with tax deducted at the members marginal tax rate
• Annuity Purchase – funds from the scheme can be used to purchase an annuity which may provide an income for life, this depends on the annuity type recommended to the member. Please note SS&C Hubwise do not offer annuities, as such if an annuity is chosen this will be treated as a transfer or an open market option to the annuity provider of choice.

If a member wishes to take benefits via Income Drawdown (Flexi Access Drawdown, or additional funds added to a Capped Drawdown plan) or UFPLS please arrange for the request to be made via the functionality on the portal or via the Retirement Request Form. 

If the member hold crystalised funds and wishes to take income or adjust the income being received this may be requested via the portal or using the attached Income Request Form.

A member in a capped drawdown plan is limited to the income limits set under the triennial GAD review rules (for additional  information on capped drawdown please refer to PTM062750 - Member benefits: pensions. If the member wishes to receive more income than  is allowed under the capped rules please arrange for the Capped To Flexi application to be completed and returned via Freshdesk.

Please note that once income is taken from the scheme via Flexi Access Drawdown (FAD), (plans in FAD Or UFPLS, and income from converted capped drawdown) the member has triggered the Monet Purchase Annual Allowance (The Money Purchase Annual Allowance)