Retirement options

You can choose to receive a tax-free cash sum of up to 25% of your Pension Account. With the rest of the Account you will be able to either:

• Take a taxable lump sum; or
• Purchase a pension with an insurance company (an annuity).
• Alternatively you can choose to take a series of Uncrystallised Funds Pension Lump Sums (UFPLS - see below).

The Bank and Trustees are pleased to be able to provide you with the option of flexibly accessing your Account by enabling you to take part of your Account whilst leaving the remaining funds invested. Each payment is known as an Uncrystallised Funds Pension Lump Sum (UFPLS) and 25% of each payment will be tax-free with the remainder being subject to PAYE tax deductions. You are able to take 10 UFPLS payments where administration costs will be covered by the Bank, the costs of any further payments will be charged to you.

The Bank and Trustees are pleased to be able to provide you with the option of flexibly accessing your Account by enabling you to take part of your Account whilst leaving the remaining funds invested. Each payment is known as an Uncrystallised Funds Pension Lump Sum (UFPLS) and 25% of each payment will be tax-free with the remainder being subject to PAYE tax deductions.

The following rules apply to UFPLS:

• Payment of an UFPLS can only be made between your Normal Minimum Pension Age and 85 (this maximum age is subject to change at the Trustees’ discretion). The Normal Minimum Pension Age is 55 currently, although please note that this age will increase to 57 from 6 April 2028 for most members (please contact the Scheme Administrator to find out your personal Normal Minimum Pension Age).
• You must take at least £5,000 for each UFPLS.
• There must be at least £5,000 remaining in your Account after taking any UFPLS.
• The administration costs for the first 10 UFPLS payments will be covered by the Bank, the costs of any further payments will be charged to you.
• You are required to provide investment instructions for the remainder of your Account each time you take an UFPLS.

You may choose to buy a pension with your Account that does not increase in payment (i.e. level), or increases at a fixed rate, or in line with inflation. All pension increases are subject to limits set by HMRC.

Yes. If you take benefits directly from the Scheme or purchase a pension with an insurance company through the Scheme, then we can arrange a tax-free lump sum if you request this. If you transfer your benefits this option should still be available, but from the provider you have transferred to.

You can take part of the value of your Account as a cash lump sum, which is currently tax-free. The amount of the lump sum is currently restricted by HMRC to 25% of the value of your Account.

If you take your benefits as UFPLS, 25% of each UFPLS will automatically be tax-free.

If you purchase a pension with an insurance company and die after retirement, the benefits payable will depend on the choices you made at retirement in respect of the type of pension you purchased from the insurance company.

If you opted to take your benefits as UFPLS and when you die you have funds remaining in your Account the Trustees will, taking into account the instructions you have given on your Nomination Form, decide who should receive the remainder of your Account. Please see the death benefits section below for further details.