Deferred member FAQ

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

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

No. The Scheme is a Defined Benefit scheme; 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 the Pensions Office contact me with my retirement options?

Yes. Provided we have your current address, we will write to you approximately 3 months
before your Scheme retirement date. If you choose not to retire at that time, it will be
necessary for you to contact the Pensions Office 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 the Pensions Office 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 the Pensions Office to request a Transfer Value, or ask your pension
provider to contact us direct 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 are dealing with 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.

Visit fca.org.uk/scamsmart for more information, including a ‘Warning List’ of
possible scams and extremely risky investments.
You should also consider taking
formal independent financial advice; visit unbiased.co.uk to find an advisor.

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. We hope to
provide this information through My Coats Pension online at some time in the future. 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 the Pensions Office about a change of address?

You should inform the Pensions Office of your new address. You can do this through My
Coats Pension. You can also request e-mail notification of our general Scheme
communications, which helps to cut down on our postage and printing costs.
Alternatively, you can phone us or download a change of address form from the Forms
section of this site. 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 of this site and
send it to us. Alternatively you can contact the Pensions Office for a paper copy. You can
change your wishes as often as you want, but please note that for data protection
purposes, the Pensions Office will not be able to verbally advise who you last nominated.

How do I inform the Pensions Office 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 on the same day we receive them.

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.