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Leaving and your deferred benefits

If you decide to stop saving into the DC Section, you will become a deferred member, unless you opt out within 30 days of joining.

If you have deferred benefits in the Defined Benefit (DB) Section, you can find out more in the DB Section of the website.

Opting out of the DC Section

Whatever the reason, it is important to carefully consider your decision, as it can have a great impact on your income in retirement.

You will miss out on:

  • Contributions from Lloyd’s Register
  • Benefits for your dependants should you die while working with us
  • Income protection cover

If you decide to opt out within 30 days of joining you can do so by phone with Standard Life on 0345 272 8837. After 30 days, you can get a form through Lifelens and return it to Group Pensions on group.pensions@lr.org.

You can re-join the DC Section at any time by contacting Group Pensions.

Under new Government rules, if you remain an employee of Lloyd’s Register you may be automatically re-enrolled into the DC Section at a future date (usually every three years) and if certain trigger events occur. We will contact any employees affected if this is required.

What happens to your benefits

If you leave the DC Section, you have a number of options depending on when you joined and how long you have been a member. Generally, you can leave your savings in the DC Section as a deferred pension, or transfer the value or your savings to another registered pension arrangement.

If you joined the DC Section from 1 October 2015, your options will depend on the length of your membership as outlined below:

Leave before retirement with less than 30 days' membership* Refund of your contributions less deductions for tax and National Insurance
Leave before retirement with more than 30 days' membership

Leave account invested in the DC Section until retirement (become a deferred member)

or

Transfer the value of your pension account to another approved pension arrangement

* If you have less than 30 days' membership, you will receive a refund based on the value of your employee contributions less tax and will not receive any benefits from Lloyd's Register at retirement.

If you leave Lloyd's Register and join a new employer's pension scheme, and your pension account in the DC Section is small, we may automatically transfer your small pension account to your new employer's pension scheme. This is as a result of Government changes which take effect from October 2016.

If you joined the DC Section and earned benefits before 1 October 2015, your options on leaving will depend on the length of your membership, as outlined below:

If you decide to leave the DC Section before retirement and you have less than two years’ membership you can:

  1. Transfer the value of your pension account to another pension arrangement provided you have at least three months' membership. If you do this you will not receive any benefits from Lloyd's Register at retirement, but you will not lose the value of Lloyd's Register's contributions as these will be transferred as part of the value of your pension account.
  2. Receive a refund based on the value of your employee contributions, less deductions for tax and National Insurance. If you choose to do this you will not receive any benefits from Lloyd's Register at retirement and you will not receive any of Lloyd's Register's contributions to your pension account. Please note that any contributions paid through salary exchange are paid by Lloyd's Register and are therefore not eligible to be refunded.

If you have two or more years’ membership you can:

  1. Leave your pension account invested in the DC Section - this is referred to as a ‘deferred pension’.
  2. Transfer the value of your pension account to another pension arrangement. If you do this you will not receive any benefits from Lloyd's Register at retirement, but you will not lose the value of Lloyd's Register's contributions, as these will be transferred as part of the value of your pension account.

Your benefits in the DC Section are 'flexible benefits' which means that you normally have a right to transfer your pension account at any time until you retire, as long as you stop contributing to the DC Section before transferring. If you do not meet the conditions for a transfer under the Government legislation, it may still be possible to transfer some or all of your pension account if the Trustee consents.

Remaining as a deferred member

If you leave the DC Section before retirement but choose to keep your pension account invested in the DC Section, you will become a deferred member.

As a deferred member, your pension account can normally be used to provide benefits at normal retirement date (age 65), although you may be able to take it earlier or later than that if Lloyd's Register and the Trustee agree (but normally no earlier than 55 unless special HMRC rules apply). Please note charges may apply depending on the option you select for your benefits.

You can get more information about your options as a deferred member from Standard Life Pensions, and you should also receive an annual benefit statement outlining the value of your account.

As a deferred member, you won’t make any further contributions to your pension account but your account will remain invested according to your existing investment choices. For more information about your investments and to make changes to your account, log in to your Standard Life account.

Death benefits as a deferred member

If you die as a deferred member, the Trustee will be able to use your pension account to provide benefits to your surviving dependants, as selected by the Trustee. This amount may be paid as a cash sum, or used to purchase a pension for your dependants at the discretion of the Trustee. Remember that if you transfer your benefits to another pension scheme, no benefits will be paid by the DC Section. If we cannot find eligible dependant(s) to pay pensions to, your pensions account will be held by the Trustee and paid as a lump sum at their discretion.

For members who joined the DC section prior to 1 October 2010 certain soft landing benefits apply.

It's important to keep the Trustee informed of your wishes should you die as a deferred member by keeping your Nomination of Beneficiary form up to date. You can do this via Standard Life.