Alternative Pensions Schemes

NEST (National Employment Savings Trust)

Nest is the National Employment Savings Trust, an occupational pension scheme run on a not-for-profit basis.

When you join NEST your money is put into one of their NEST Retirement Date Funds. Unless you advise differently, they will assume you will take your money out of NEST when you reach 65 or your current State Pension age, depending on your date of birth.

You can take your money out of NEST at any point from your 55th birthday. Leaving your money in longer means you’ll have more time to make contributions and they will have more time to grow your retirement pot. It’s a good idea to advise them as soon as you plan to take your money out in order that they can manage your retirement pot to be ready for that date.

How much income you get at the end depends on a number of things. For example, how much you contributed and for how long, scheme charges and how much your money has grown. Further information is detailed in the NEST welcome pack each member receives.

Further information is available at www.nestpensions.org.uk/contactus
 

THE PENSIONS TRUST

The Pensions Trust is a Defined Contribution (DC) scheme; you and your employer contribute into your pension scheme to build up a fund with which you purchase a retirement income.

These savings can be used in a couple of ways:

  • Spend the whole lot on a pension. This will get you the highest monthly income in retirement.
  • Take some of your savings (up to 25%) as a tax-free cash lump sum. You then use the rest of your savings to buy a lower pension

When you retire, it can take up to 8 weeks for you to receive any cash lump sum you have chosen and a little longer for your annuity payment to start. This will be backdated to your date of retirement. You should bear this delay in mind when making financial decisions around your retirement date and ensure that you reply quickly to any requests for information.

Further information can be found at www.frpdc.org.uk
 

CITRUS

This is a money purchase or defined contribution benefits scheme to which both you and your employer contribute (you will automatically receive tax relief on your contributions.) An amount equal to these contributions is then credited to your member account. The value of the member account will reflect the joint contributions and the returns achieved by the investment of these funds and will be used to provide your pension benefits.

 

You will have some choice of the benefits you can take such as providing for a dependents pension payable after your death or a pension that increases whilst in payment to protect against inflation. An annual statement showing the value of your account will be issued to you each year.

 

Your benefits will normally come into payment on your normal retirement date (the day before your 65th birthday). If your employer agrees, benefits may be payable earlier, the earliest at which you make take early retirement is usually age 55.

 

Further information can be obtained via telephone: 0114 273 7331 or by emailing: citrus@capita.co.uk