scheme.htm

Changing circumstances

What happens if I go on Family Leave?

Family Leave includes

  • Ordinary Maternity Leave

  • Additional Maternity Leave, if you are paid

  • Paternity Leave

  • Parental Leave, if you are paid

  • Adoption Leave

You may be paid less whilst you take Family Leave, but for the purpose of your membership of the Scheme, your salary continues to be the amount that would have applied if you were working normally. This means that your salary is not reduced when calculating your pension and any death in service benefits. Your contributions are based on the pay you actually receive. You continue to build up pensionable service during any period of Family Leave.

If you take any unpaid Family Leave, you do not pay contributions for that period. However, you will continue to be treated as being in service and the benefits described under “Death While Still in Service” continue to apply as if you had been working normally.

When you return to work, your pensionable service will begin to build up again. The second period of pensionable service will be added to the first period, but your absence will not count. However, if your Employer agrees, you can make up the missing contributions so that your absence is included in your pensionable service.

You can continue to pay AVCs during any period of Family Leave, but these may have to be reduced to reflect the pay you receive. Alternatively, you can cancel your AVCs until you return to work by writing to your Payroll Department. When you return to work, you should inform your Payroll Department if you want to start paying AVCs again or if you want to pay any missed AVCs.

If you take sickness leave
If you are absent through sickness, your contributions are based on the pay you actually receive, including any Statutory Sick Pay. You continue to build up pensionable service providing you’re paying contributions. Your salary is not affected, as we use the amount that would apply as if you were working normally.

You can continue to pay AVCs during any period of illness, but these may have to be reduced to reflect the pay you receive. Alternatively, you can cancel your AVCs until you return to work by writing to your Payroll Department. When you return to work, you should inform your Payroll Department if you want to start paying AVCs again or if you want to pay any missed AVCs.

If your absence is unpaid
You can miss up to eight weeks’ contributions (these can be paid at a later date), without affecting your membership of the Scheme. You continue to build up pensionable service and your salary is the amount that would apply if you were working normally.

If you miss more than eight weeks’ contributions, your membership of the Scheme will be suspended. This means that you no longer build up any pensionable service but, provided your absence has been authorised by your Employer, you will remain covered for the benefits described under Death While Still in Service.

When you return to work, your membership will be reinstated. The second period of pensionable service will be added to the first period, but your absence will not count. However, if your Employer agrees, you can make up the missing contributions so that your absence is included in your pensionable service.

What happens to my pension if I get divorced?

The Court must include pension rights when deciding settlements on divorce or on dissolution of a civil partnership. It has 3 options:

  • offset the value of the pension rights against other assets

  • set aside part of the pension rights for the ex-spouse / ex-civil partner

  • transfer some of the benefits to a policy in the name of the ex-spouse / ex-civil partner as part of a clean break settlement

We will provide the Court with whatever information they require, and we may charge you for this.

What happens if I change from full-time to part-time work?

Your contributions and the lump sum payable on death in service (see Death While Still in Service) will be based on your salary as for full time members, which depends on the hours you actually work. However, any pensions provided by the Scheme – on death, to your dependants or to you when you retire – are based on your pro-rata pensionable service and the full time equivalent of your salary. To calculate your pro-rata pensionable service, we use your contractual working hours as a proportion of the hours for someone doing the same job, but working full time.

What happens if I must retire early due to illness?

If you are still working for the Company and contributing to the scheme
If you are in poor health and this prevents you from working, you will normally be able to retire and receive an immediate pension. However, you must meet the Scheme’s incapacity rule. Incapacity means that your health or disability prevents you from doing your normal job or a similar job. After you make your application, the Trustee uses medical information from your GP and any other physicians treating you to decide if you meet the definition of incapacity.

If your application is accepted, your employment ends and you begin to receive your pension, immediately. The amount is calculated as if you were retiring at normal retirement age, using the pensionable service completed up to the date of retirement and Final Pensionable Salary at that time. Taking account of the severity of your illness, the Trustee may also include some of the pensionable service you would have completed, had you been able to continue to work until normal retirement age.

If you are retiring from the Company because of incapacity, you will continue to qualify for the lump sum described under "Death While Still in Service", until you reach normal retirement age.

If you opted-out of the Scheme or left employment with the Company and have a deferred pension
You may also qualify for early payment of your deferred pension, due to incapacity, if you are a deferred pensioner. If your application is accepted, your deferred pension together with the annual increases added from the date you left, are paid immediately, without reduction. You will no longer qualify for any death in service lump sum if you left the Company.

Are ill-health pensions reviewed?
Yes, the Trustee does review incapacity pensions and may increase, reduce or end payment, depending on any change in your health. The Kingfisher Pensions Department will contact you if a review is required and you may be asked to provide information about your health at that time.

What happens if I work past Normal Retirement Age?

If you work past age 65, with Employer and Trustee agreement you and your Employer will continue to contribute to your pension fund, and you will receive your pension benefits at your new retirement date. You must put your pension benefits into payment before age 75 even if you are still working for your Employer at the time.

Can I give my benefits to someone else?

Your pension benefits paid at retirement are normally paid to you only. However, when you die, death benefits may be available to your dependants. For example, you have the opportunity to complete a form telling us who you would like your death in service lump sum paid to. For further details please see Death Benefits. Furthermore, pension entitlements may be included in a split of matrimonial assets on divorce. If you feel you may be involved in a divorce you should raise this matter with your legal adviser.

What happens if I am seconded overseas?
 

If you are seconded overseas special conditions may apply and you may need to come out of the Final Salary section of the pension scheme. It is crucial you inform the Pensions Department as soon as possible if you are going to work overseas.

What happens if I am transferred permanently overseas?

If you are transferred permanently overseas you must come out of the pension scheme. It is crucial you inform the Pensions Department as soon as possible if you are going to work overseas.