Motor Industry Pension Plan

Frequently Asked Questions

This page has been designed specifically for members of the Motor Industry Pension Plan to provide answers to questions which are most frequently asked by members of the Plan.

FAQs

Further Information
General
  • What type of benefits are provided by the Plan?
    • Benefits from the Plan are provided on a “defined benefit” (also known as “final salary”) basis. This means that your pension is not based on the value of the assets in the Plan but is calculated using a formula involving your length of pensionable service in the Plan and your salary during that period. We regularly monitor the funding of each section of the Plan and if additional funds are required to fund pensions in the long-term these must be provided by the respective employers.
  • Who is responsible for running the Plan?
    • A professional pension scheme trustee company (Ross Trustees Services Limited) is appointed to run the Plan and does so in accordance with the Plan's rules. The day-to-day administration of the Plan (for example, paying members' pensions and dealing with members' queries) has been delegated by the Trustee to specialist pension scheme administrators (Aon).
  • You say that lots of different employers have participated in the Plan. Does this affect my benefits?
    • No. Assets and liabilities relating to each employer within the Plan are segregated. Your benefits are provided from a section of the Plan which contains only assets and liabilities relating to those members who were employed by your employer.
  • Who should I contact if my employer has withdrawn from the Plan?
    • If your employer has withdrawn from the Plan responsibility for your benefits will have been transferred to a third party (usually an insurance company or another pension scheme). You should have been notified of these new arrangements and provided with new contact details when these changes were made. If you have any questions we recommend that you contact your new provider or your employer. If you have lost details of the current provider, the Plan's administrator may be able to put you in touch with them.
  • I am going through a divorce and need to provide pension information. What should I do?
    • You should contact the Plan’s administrators. Please go to the Contact Us page for details of how to do this. You should state that you require a valuation of your benefits for divorce purposes so that the administrators can provide you with the necessary information. You should note that charges can apply for processing requests relating to divorce proceedings. Further details of these charges can be provided on request.
If you have left pensionable service
  • What pension will I receive when I retire?
    • Your pension is based on the number of years that you were a member of the Plan and your salary during that period. When your pensionable service in the Plan ended you will have been provided with a statement setting out the benefits that have been preserved for you in the Plan. Those benefits remain preserved until you begin to draw your pension, at which point they are revalued in accordance with the Plan’s rules. These rules can be complicated and involve a number of different factors but, for most members, this means that your pension will be increased to protect against the effects of inflation in the period between the date you left service and the date you retire.
  • What options are available to me when I retire?

    • You will have two main options:

      1. You can take your full pension (usually payable in monthly instalments) and receive no tax-free cash lump sum.

      2. You can choose to reduce your pension and also receive a tax-free cash lump sum. The Plan’s administrators will inform you of the maximum tax-free cash lump sum that is available prior to your retirement date.
  • When will I receive information about my retirement options?
    •  The Plan’s administrators will contact you with further details approximately three months prior to your normal retirement date.
  • Can I take my benefits out of the Plan?
    • Yes. You have the option to transfer your benefits to another registered pension scheme. If you wish to consider this option you should contact the Plan’s administrators. Please go to the Contact Us page for details of how to do this. We recommend that you take independent financial advice before considering transferring your benefits to another scheme and, if your transfer value is above a certain level (currently £30,000), you are required by law to obtain this advice.
  • Can I take my benefits as cash?
    • Generally, no, and you should treat anyone informing you that you are able to do this with caution. There are, however, some exceptional situations where this might be possible. For example, if you have a small annual pension which meets certain conditions and you have reached the minimum pension age (currently 55), or if you are in serious ill health.
  • Why do I not receive an annual statement of my benefits?
    • As described above, benefits have been preserved for you in the Plan which remain unchanged until you begin to draw your pension. As a result, there is no requirement to provide annual benefit statements.
  • Can I start drawing my pension early?
    • Yes. Subject to obtaining the Trustee’s consent, and subject to the early pension being sufficient to cover any statutory minimum, it is currently possible for you to begin drawing your pension at any age from 55 (although this is likely to change in the future, as explained below). If you wish to consider this option you should contact the Plan’s administrators. Please go to the Contact Us page for details of how to do this. Your pension in these circumstances would be reduced to reflect the fact that it would be paid for a longer period of time.
  • I am in ill health. What are my options?

    • If you are in serious ill health it may be possible for you to take all of your benefits from the Plan as a cash lump sum. You must meet the criteria set out in the Plan’s rules which, amongst other things, means that you must have been informed that you are expected to live for less than one year. If you wish to consider this option you should contact the Plan’s administrators. Please go to the Contact Us page for details of how to do this. You should make it clear that your communication relates to a serious ill health payment so that it can be appropriately prioritised.

      If you do not meet the criteria for serious ill health, it may still be possible for you to begin drawing your pension at any age if you meet the ill health criteria set out in the Plan's rules. If you wish to consider this option you should contact the Plan's admininstrators. Please go to the Contact Us page for details of how to do this. Your pension in these circumstances would be reduced to reflect that it would be paid for a longer period of time.
  • Is the minimum age at which I can take my benefits likely to change in future?
    • Yes. The Government is proposing to raise the minimum early retirement age from 55 to 57 by 2028. It is then likely to increase in line with proposed changes to the State Pension Age so that it will remain ten years below State Pension Age. It may, however, still be possible to retire earlier than the minimum age on grounds of ill health.
  •  Can I defer my pension until a later date?
    • Yes. Subject to obtaining the Trustee’s consent, it is currently possible for you to defer your pension until any age up to 75. If you wish to do this you should inform the Plan’s administrators when they contact you prior to your normal retirement date. Your pension in these circumstances would be increased to reflect the fact that it would be paid for a shorter period of time.
If you are receiving a pension from the Plan
  • How is my pension paid?
    • Your pension is paid in accordance with the Plan’s rules. Generally, this means that it is paid on the first of each month in advance. Depending on the rules which apply to your benefits, some of your pension may increase annually and some of it may be fixed. You will have been informed of the technical details relating to your pension increases when your pension was first put into payment.
  • I have changed my bank details. What should I do?
    • You should contact the Plan’s administrators. Please go to the Contact Us page for details of how to do this.
Benefits paid following your death
  • Will a pension continue to be paid following my death?
    • If you leave a spouse or civil partner, they will receive a pension for life following your death. In certain other circumstances it may be possible for your surviving children or another financial dependant to receive a pension following your death. Such benefits are paid in accordance with the rules of your section of the Plan and may require the Trustee’s consent. If you would like further information you should contact the Plan’s administrators. Please go to the Contact Us page for details of how to do this.
  • Will a lump sum be paid following my death?
    • A lump sum will generally be paid if you die before receiving your pension or within five years after starting to receive it. The amount of the lump sum will be calculated in accordance with the Plan’s rules and paid to beneficiaries chosen by the Trustee following your death. The Trustee will generally seek to follow your wishes when distributing any lump sum payments so you should ensure that you have provided a nomination form to the Plan’s administrators and that this is kept up to date if your circumstances change.























Provided by Aon