Deferred member FAQ (BHPS)

This section refers to deferred members of the Coats UK Pension Scheme (the “Scheme”) who were formerly in the Brunel Holdings Pension Scheme (BHPS).

Now that I have left the Company, is my pension amount frozen?

The Scheme is a Defined Benefit arrangement; the pension earned and increases paid upon it are built into the Scheme Rules. Your deferred pension is increased each year in line with inflation up to a maximum of 5% a year.

Will XPS Administration contact me with my retirement options?

Yes. Provided we have your current address, we will write to you approximately 6 months before your Scheme retirement date. If you choose not to retire at that time, it will be necessary for you to contact XPS Administration when you are ready to take your benefits.

What is the earliest date I can draw my pension?

Early retirement is normally possible from age 55 onwards.

I am over age 55, how can I get an early quote of my benefits?

You should contact XPS Administration to request an early retirement quotation. To ensure this is dealt with as quickly as possible, please confirm your name, address, date of birth and National Insurance number on the request.

Can I cash in my pension, or draw a cash lump sum from it?

It is usually possible to exchange 25% of your pension rights for a tax-free cash lump sum. Pension legislation normally requires you to be at least 55 years of age, and to take your annual pension at the same time as you are receiving your lump sum. A notable exception is the possibility of a person receiving all of their pension rights as cash if they are expected to live for less than a year (serious ill health).

How do I transfer my Coats pension to my new pension provider?

You should contact XPS Administration to request a transfer value, or ask your pension provider to contact us directly with your authority.

I have been promised excellent returns elsewhere, is this realistic?

The most important thing you can do before you make any decision about moving your money is to make sure you seek financial advice from a reputable company. Whether you contacted them or they contacted you, whether it’s about transferring your entire pension or investing your tax free cash lump sum or other savings, always do some background checking of your own.

Please note that neither the Trustees nor XPS Administration are permitted to advise you on whether it is in your best interests to transfer, which may depend on a number of factors including your own individual circumstances. This kind of advice can only be given by a financial adviser who is authorised by the Financial Conduct Authority to advise you about transfers.

You can use the Money Advice Service’s online retirement adviser directory to find an independent financial adviser at www.moneyadviceservice.org.uk/directory and the enclosed notes tell you about other organisations that can provide information to help you make a decision.

Will transferring my pension mean I can access more options?

It may be possible to transfer your pension rights to a Defined Contribution arrangement. Unlike the structure of Defined Benefit schemes (like the Coats UK Pension Scheme), such arrangements can permit the payment of one or more cash lump sums without paying a corresponding pension. However, you should consider the following:

  • Government legislation requires most people to pay for formal independent financial advice before Defined Benefit pension rights can be transferred to a Defined Contribution arrangement.
  • Once transferred, you lose any certainty about the level of pension benefits you can expect to receive. This is because the value of your pension rights can go down as well as up due to market changes. Taking too much cash too soon can also leave you without enough money to live on.
  • The minimum age of 55 remains in place, other than in cases of serious ill health.

Will I receive annual statements for my pension?

Given the costs involved, paper statements are not issued on an annual basis. In the meantime, you can ask for a quotation of your benefits at any time. To ensure this is dealt with as quickly as possible, please confirm your name, address, date of birth and National Insurance number on the request.

Members with AVCs will receive annual statements of the values of their AVC funds.

How do I inform XPS Administration about a change of address?

You should inform XPS Administration of your new address. You can phone us or download a change of address form from the Forms section.

It is important to inform us of your change of address as we will be unable to contact you to set up your pension if we do not have your current address.

I wish to change the details on my Expression of Wish.

You can print an Expression of Wish directly from the Forms section and send it to us. Alternatively you can contact XPS Administration for a paper copy. You can change your wishes as often as you want, but please note that for data protection purposes, XPS Administration will not be able to verbally advise who you last nominated.

How do I inform XPS Administration about a change to my name?

For security reasons, you must inform us of this in writing and send us the appropriate documentary evidence of the change, i.e. Marriage Certificate, Final Divorce Papers, Change of Name Deed etc. We are unable to accept uncertified photocopies of these documents, but we will return your original documents to you using Royal Mail’s ‘Signed For’ service within 2 working days of receipt.

Where can I find out more about the Scheme funding?

The Trustee’s objective is to ensure that the fund is sufficient to pay pensions now and in the future. An actuarial valuation of the Scheme funds is normally carried out every three years by the Trustee with the help of their advisers. The valuation takes into account the changes to the Scheme since the last valuation, including any changes to the Company’s financial position. The Trustee and Company agree the contributions which are required based on the results of the valuation. The Trustee then produce a funding statement for all members confirming the results.