FAQs
Glossary
Additional contributions | Additional contributions made through Options in return for a reduction in your remuneration, which is know as salary sacrifice. This will provide additional benefits at retirement. |
Additional voluntary contributions (AVCs) | These are currently the additional contributions that you may have made to the Scheme by deduction from salary to provide additional benefits at retirement. This will have been either before Options was introduced or because it was inappropriate to pay contributions via salary sacrifice. |
Base salary | Your annual salary, excluding variable earnings (such as bonuses and fringe benefits) and ignoring any adjustments as a result of your participation in Options. |
Company
| Schroders plc or, as appropriate, any of the companies participating in the Scheme. |
DB section | The defined benefit section of the Scheme. |
DC section | The defined contribution section of the Scheme. |
Earnings cap
| The ceiling previously imposed by the government on the earnings that could count towards benefits from tax-approved pension schemes up to 5 April 2006. The government’s earnings cap no longer applies from 6 April 2006, and Schroders instead operates a notional earnings cap. This reflects the shadow cap set by HMRC from 2006/7 to 2010/11, and will increase in line with the rise in the RPI thereafter or by such amount as Schroders may decide. The current figure can be obtained from Aptia. |
Final salary | Your base salary received in the year ending on the day that you retire, leave the Company or die. This is subject to a maximum of the earnings cap where applicable. |
Options | The benefits system operated by the Company. |
HMRC | HM Revenue and Customs. |
Individual account | The account set up in the DC section in your name. |
Partner | This is your spouse or civil partner, or a person who is living with you and financially dependent on you at the date of your death. |
RPI | Retail Prices Index. |
Salary | Your annual base salary, excluding variable earnings (such as bonuses and fringe benefits), and ignoring any adjustments as a result of your participation in Options subject to a maximum of the earnings cap. |
Salary sacrifice | An arrangement by which the Company will make additional contributions to the Scheme on your behalf in return for a reduction in your salary. |
Scheme | The Schroders Retirement Benefits Scheme. |
S2P | The State Second Pension Scheme. |
State Pension age | This is the earliest age you can start receiving your State Pension from the government. For those born after 5 April 1960, there will be a phased increase in SPA to age 67, and eventually 68. Please be aware that the SPA may change in the future. |
FAQs
Pensions can be complicated, so it’s natural you’ll have questions about yours. These Frequently Asked Questions (FAQs) are designed to answer the most commonly asked questions about the defined benefit (DB) section of the Schroders Retirement Benefits Scheme (the Scheme). If you can’t find the answer to your question here – or elsewhere on the website – please contact Aptia.
What is a DB pension scheme?
A DB pension scheme provides a fixed retirement income, based on your salary and how long you were building up your pension. This is secured for life and may increase each year in line with inflation. Visit the What is a DB pension? page for further information.
How much do I get with a DB pension?
The amount you receive is based on your salary while you’re employed by Schroders and how long you were building up benefits for. It’s also known as a final salary scheme. Visit the Our DB pension scheme page for further information.
Who pays for the benefits?
The DB section closed to the build-up of future benefits on 30 April 2011 and any future costs will be borne by Schroders. Visit the Our DB pension scheme page for further information.
How do I join the DB section?
The DB section closed to the build-up of future benefits on 30 April 2011. Visit the Our DB pension scheme page for further information.
At what age can I take my DB pension?
You can take your pension from age 55. The minimum age at which you can take your pension, known as the minimum pension age, will increase to 57 from April 2028. It’s set by the government and may increase again in the future.
Can I choose how I take my pension when I retire?
Your pension will be paid as a monthly income and taxable under the PAYE scheme. You may be able to take some of your pension as a tax-free cash sum and then receive a reduced pension. If you’re also a member of the DC section you may be able to use the value of your individual account to fund the tax-free cash sum from the DB section and keep a higher pension. Visit the Your retirement options page for further information.
What happens if I leave Schroders before retiring?
Your benefits will remain as a preserved pension until you’re ready to take them, unless you choose to move the funds into another pension arrangement. Visit the Your retirement options page for further information.
Will I get my DB pension if I retire early?
The normal retirement age for the DB section is 60 but you can retire at any time from age 55. Your pension will be reduced to account for early payment if you take it before age 60 and any reductions will be calculated in line with current market conditions. The minimum age at which you can take your pension, known as the minimum pension age, will increase to 57 from April 2028. It’s set by the government and may increase again in the future. Visit the Your retirement options page for further information.
What happens to my pension if I keep working after age 60?
If you keep working at Schroders, or elsewhere, after the age of 60, you can delay your pension until your actual retirement date. You can start receiving your pension and also remain in employment. Please consider any tax implications of having additional income before doing this. Visit the Your retirement options page for further information.
What happens to my pension if ill health prevents me from working?
If your illness is serious enough you may be able to receive a lump sum equal to the value of your pension. You’ll need to provide medical evidence to access these options. Visit the Your retirement options page for further information.
What happens if you die before taking your pension?
If you die before taking your pension, whether you’re employed by Schroders or not, your surviving partner would be entitled to a pension. The pension payable is 50% of the pension you built to your date of leaving/ceasing to build up future benefits, increased in line with the Scheme rules to date of death.
If you die after starting to receive your pension your surviving partner would be entitled to a pension. The pension payable is 50% of your full pension at date of retirement increased in the same as your pension to date of death. Visit the Death benefits - Looking after your loved ones page for further information.
Can I transfer funds out of my pension?
If you want to move your money to another pension arrangement, you can request a transfer quote from Aptia. You can only make this request once every 12 months. Visit the Tracing and transferring old pensions page for further information.
If I paid into a DB pension scheme, do I still receive a State Pension?
Yes. The State Pension is a regular payment from the government that most people can claim when they reach their State Pension age. The State Pension age isn’t the same as your retirement age and varies according to the year you were born and gender. The amount you receive is also dependent on your National Insurance record. Check the amount of State Pension you’re entitled to. Visit the State Pension page for further information.
Does the Scheme provide anything else?
Yes.
- You can take a cash sum at retirement of up to 25% of the value of your pension benefits.
- Pensions for your partner and children on your death, before or after retirement.