If you’ve left the Scheme but haven’t yet taken your pension, you’re known as a deferred member.
Whether your retirement is still a way off or just around the corner, planning ahead can help you understand what income you might receive in retirement. This page explains the benefits you have in the Scheme and the options available to you.
You don’t need to make any decisions straight away. Many members simply check their details from time to time and look more closely at their options as retirement approaches.
Your pension benefits are based on:
Your pension:
There are various options for how you can take your benefits from the Scheme. For example, you can either take it all as regular pension payments, or take a combination of pension and a cash lump sum. You can normally draw benefits from the Scheme from age 55.
The choice you make will affect how much income you receive for the rest of your life, so it’s important to think about what’s right for you.
You can normally take up to 25% of the value of your pension as a tax‑free cash lump sum when you retire. If you choose this option, your regular pension payments will be lower, as part of your pension value is paid to you upfront.
If you had benefits in the DC Section of the VWGPS that were transferred to the Aviva Master Trust, you may be able to switch back some or all of those DC funds into the VWGPS when you retire. This can allow you to use your DC benefits first when taking tax‑free cash, which may help you keep more of your final salary pension intact.
Full details will be included in your retirement illustration, provided by the Scheme administrator.
You may be able to transfer the value of your pension out of the Scheme to another pension arrangement. This can offer flexibility, but it also means giving up the guarantees provided by the Scheme.
You may need to take independent financial advice if your benefits are worth over £30,000. Please make sure they are FCA authorised to provide pension advice and you understand all the potential costs for their services upfront.
You can find a pension or retirement adviser on the MoneyHelper website.
Transferring out is a significant decision and isn’t right for everyone. Things to consider include:
Before any transfer can be paid, the Scheme administrator must complete checks required by The Pensions Regulator to help protect members from scams.
Once all checks are complete and the required evidence has been provided, your transfer value will be paid to your chosen arrangement. You will then no longer have any benefits in the Scheme.
If you die before taking your pension, we may pay a dependant:
If you die after taking your pension, we may pay your beneficiaries:
You can do this online via Clarity, in writing or by emailing the Scheme administrator (Barnett Waddingham).
Barnett Waddingham will usually issue your quotation within 10 days of your request, but it may take longer depending on your situation.
Want some help understanding your options or making your decision?
You can get free, impartial guidance you can trust from MoneyHelper.
If you’d like to go ahead and take your pension benefits from the Scheme, you’ll need to complete the forms and perform an online ID verification process.
Once your forms are received, Barnett Waddingham will:
If you choose to take a tax-free cash sum, Barnett Waddingham will arrange for this to be paid on or around your retirement date, with your monthly pension payments commencing from the next payroll run.
If you have additional voluntary contributions (AVCs), the process may take slightly longer as the administrator will have to liaise with the AVC provider before your benefits can be finalised.
Pension payments will be paid monthly and will be reviewed for increases each year in line with the Scheme Rules. You will only receive a payslip if there has been a substantial change to the amount being paid.
It’s important to tell us if you’ve moved house, got married or have a long term partner. It helps us make sure we can pay your benefits promptly.
The Trustee also needs to know who you would like to receive any lump sum benefit payable on your death.
The quickest way to update your details is online at Clarity or you can contact the Scheme administrator.
To report the death of a Scheme member, their spouse/civil partner, next of kin or other personal representative should contact the Scheme administrator. We’ll need you to tell us:
We hope you’re happy with the service you receive. If you have any complaints, please contact the Scheme administrator first. If you’re dissatisfied with the response, you can contact the Trustee at vwsec@vidett.com.
It’s wise to take independent financial advice before deciding how you’ll use your Scheme savings. Find out how to find a pension or retirement adviser on the MoneyHelper website. Please make sure they are authorised to provide pension advice and you understand all the potential costs for their services upfront.
