A defined benefit occupational pension scheme based on final salary. The scheme allows for benefits calculated in a similar way to classic for service on and before 30 September 2002 and benefits calculated on a premium basis for service from 1 October 2002.
classic plus has a variable contribution rate dependent upon your pensionable earnings. Details of the amount you will pay can be found here. Your employer also makes a significant contribution to your pension.
classic plus was contracted out of the *State Second Pension (S2P) between 6 April 1978 and 5 April 2016, when contracting out ceased. Due to the contracted out status between 1978 and 2016, members of the scheme paid lower rates of National Insurance contributions and did not build up entitlement to the S2P element of the previous two part state pension.
* The State Second Pension (S2P) was previously known as the State Earnings-Related Pension (SERPS).
For most members has a scheme pension age of 60. (You do not, however, have to retire at this age).
Gives scope for you to increase your pension by making additional payments (called ‘added pension’). Before the introduction of added pension, you could buy ‘added years’. Added years have now been withdrawn but if you opened an account before 1 March 2008, you may still be contributing.
Provides an income that increases in line with rises in the cost of living when you retire and benefits for your dependants after your death.
Gives you: – an automatic lump sum from your pre October 2002 service – a choice to give up more of your pension to get an additional lump sum. (Both the automatic and additional lump sums are tax free).
Includes valuable life cover before you retire and it may provide protection if you suffer serious ill health.