Summary of benefits

Friends Provident changed its name to Friends Life and then became part of Aviva in 2014.

The Pensions Department will contact you six months before your normal pension age to tell you about the benefits that you may be due. In most cases we will tell you about your annual pension amount that may be payable and explain the option you may have to take a portion of your pension as a tax-free cash lump sum. If you want to retire later than your normal pension age you can choose to defer payment of your pension benefits until a later date.

Leaving ICAEW

If you leave ICAEW’s employment before the Fund retirement age of 65 your deferred pension will be calculated by using your pensionable service and pensionable salary to 30 June 2010. However, your pensionable salary will be increased for complete years from this date, in line with the Retail Prices Index (up to a maximum of 5% a year) to help protect the value of your pension.

Retiring early

If you are over the age of 55 you may choose to take your pension early, even if you are still employed by ICAEW. Your pension will be reduced by an early retirement factor, depending on which Group you were a member of at 30 June 2010. If you are leaving the employment of ICAEW your pension may be put into payment early if you are aged 52 or over.

Ill health

If you are unable to continue working due to ill health before your normal pension age, you may be eligible to receive your pension early. If your pension is paid on the grounds of incapacity your pension will be calculated based on your pensionable service to 30 June 2010, and your prospective service from the date of your retirement to your 65th birthday. It is based on your pensionable salary at 30 June 2010, increased for complete years in line with Retail Prices Index (up to 5% a year).

Death in service benefits

If you are still employed by the ICAEW and paying into Group Personal Pension Plan, when you die, your beneficiaries will receive a lump sum from the life assurance scheme. Further details and Expression of Wish forms can be obtained by contacting the Pensions Department.  

In some cases, your dependants may be entitled to receive a pension, this could include:

• Your spouse may receive a dependant’s pension for life based on half of the pension that you would have received at your normal pension age, allowing for pensionable service, up to and including 30 June 2010, and prospective pensionable service from your date of death to your normal pension age. The pension may be reduced if your spouse is more than ten years younger than you. 
• Your children may receive an allowance of 25% of your spouse’s pension, payable to up to four children. These allowances are paid up until their 18th birthday – or 23rd if the child(ren) remain in full time education.
• Your Civil Partner or same-sex husband or wife may receive a pension based on your periods of service in the Fund and from 5 December 2005, and post 1988 contracted out rights.

If you do not have any dependants who qualify for a dependant’s pension any AVCs you have paid, and contributions transferred to the Fund will be paid out as a lump sum.

A deferred pension is payable from you normal pension fund. In the period between you becoming a deferred member and your pension being paid it will increase in value in accordance with the Fund rules. 

The Pensions Department will contact you six months before your normal pension age to tell you about the benefits that you may be due. In most cases we will tell you about your annual pension amount that may be payable and explain the option you may have to take a portion of your pensions as a tax-free cash lump sum. If you want to retire late than your normal pension age you can choose to defer payment of your pension benefits until a later date.

Retiring early

You can apply to have your pension paid before your normal pension age at any time from age 55. In these cases, your pension will be reduced by an early retirement factor. 

Small pensions

If your pension is very small, it may be possible to exchange its whole value for a cash lump sum. We will let you know if this applies to you when we send you your retirement pack.

Transferring your pension

Deferred pensions can be transferred to another provider at any point before your normal pension age, or later if your pension has not been put into payment. (Previously you could not transfer your pension to another provider if you were within one year of your normal pension age, but these rules have now been relaxed.)

It is a statutory requirement that all members whose transfer values are £30,000 and over seek financial advice before transferring to a defined contribution arrangement. If your transfer value is smaller than £30,000 or if you’re transferring to any other arrangement, we would still strongly recommend that you seek advice.

Death benefits

If you die before you begin to receive your pension from the Fund the following benefits may be payable:

• A lump sum equivalent to your total contributions paid or transferred to the Fund, plus interest.
• If you have dependants it is likely that they will receive a pension. This could include:
  • A dependant’s pension for your spouse based on half of your deferred pension payable to your spouse for life. However, the pension may be reduced if your spouse is more than ten years younger than you.
  • An allowance of 25% of the above spouse’s pension will be payable to each child up to four children in total. These allowances are paid up until their 18th birthdays – or 23rd birthdays if the child(ren) remain in full time education. 
  • Your Civil Partner or same-sex husband or wife may receive a pension based on your periods of service in the Fund on and from 5 December 2005, and post 1988 contracted out rights.

Pensions payments

Your pension is payable for your lifetime. The value of your pension is increased each year on 1 January in line with the Retail Prices Index (limited to an increase of 5% per year).

Death benefits

If you die within the first five years of retirement the Trustee will pay a lump sum equivalent to the remaining five years’ payments based on your monthly pension at the date of your death.

If you have dependants it is likely that they will receive a pension. This could include:

• A dependant’s pension for your spouse. The amount will depend on when you retire. If you retired before 1 January 1996 your spouse’s pension will be 2/3 of your pension in payment. If you retire after this date your spouse’s pension will be 1/2 of your pension at your date of death (adjusted to ignore any cash lump sum you may have taken). However, the pension may be reduced if your spouse is more than ten years younger than you.
• Your children may receive an allowance of up to 25% of the above spouse’s pension for up to four children. These allowances are paid up until their 18th birthdays – or 23rd birthdays if the child(ren) remain in full time education or training. 
• Your Civil Partner or same-sex husband or wife may receive a pension based on your periods of service in the Fund on and from 5 December 2005, and post 1988 contracted out rights.

Important note: If there is any conflict between this summary of benefits and the Definitive Deed and Rules, the Rules will apply.