A: A preserved pension is one that becomes payable in the future (typically at normal retirement age) and to which the employee has ceased to contribute as he/she has either opted out of the scheme or left the service of the scheme.

A: Unless an immediate pension is payable, i.e. ill health, redundancy, flexible retirement etc. then anyone under the age of 60 who has accrued over three months membership would be entitled to a preserved pension. A preserved pension can also be awarded to a member who is over the age of 60 and this is often seen where the member would not have met the 85 year rule and would subsequently suffered a reduction to their benefits if they were taken before age 65. Benefits are then taken at age 65 unreduced.

A: The calculation of your deferred benefits is based on your period of membership and your final pay. Your period of membership is generally the number of years you have contributed to the Scheme (adjusted for part-time employees), plus any periods purchased with additional contributions and any credited to you from previous membership of another pension scheme or arrangement. Your final pay is generally the earnings on which you paid contributions in your last 12 months of membership or the better of the two previous years if this gives a higher figure.

A: Yes, your preserved pension will be increased from when you leave the Scheme to the date you retire by the annual rate of inflation. After retirement, your pension will be increased in the same way as for other pensioners. We write to all of our preserved members annually to inform them of the increase to their benefit.

A: If you re-join the Scheme, you will begin to build up membership towards a new set of pension benefits, in addition to your deferred benefits. You will usually have the option of keeping these two sets of benefits separate or joining them together to form just one set of benefits. You normally only have 12 months from the date you join to choose to link your deferred membership to your new membership, so you should find out about this as soon as possible.

A: This may be possible but you must first ask your current scheme's administrators if they will accept a transfer value. Some schemes will only accept transfers if the member requests a transfer within 12 months of joining. You may also transfer your pension to a personal pension or stakeholder pension.

If you are interested in transferring the value of your accrued pension rights to another occupational pension scheme (outside of Local Government) , to a personal pension plan, to a stakeholder pension scheme or to a buy-out insurance policy you can ask for a transfer value quotation to be provided (known as the 'cash equivalent' transfer value). Transfers can also take place to other Local Authority Funds, these are known as Interfund Transfers.

A quotation will be issued to you once we have all the relevant documentation to provide a quotation. The quote will be guaranteed for a period of three months from the date on which it was calculated (the 'Guarantee Date'). A written option to proceed with the guaranteed transfer value must be received within the three month guaranteed period in order for the original transfer value to stand.

A: Your preserved pension will normally be paid at age 65. Benefits paid before age 65 may be subject to an actuarial % reduction.

A: Yes – but they may be subject to an early retirement reduction. Your statement will show the first date that your benefits become payable without a reduction. We will contact you shortly before your 60th birthday, detailing the options available to you, including the amount of pension and lump sum.

A: As part of our processes we write to all members in advance of receiving payment of their deferred benefits and issue you with a Lifetime Allowance form and guidance notes. Before this happens, you can help the process by obtaining details of all other pension savings and arrangements you may have. These include:

• Personal pensions
• Stakeholder pensions
• Free Standing Additional Voluntary Contributions (FSAVCs)
• Occupational pensions (including any other Local Government Pensions or Forces Pensions) You do not need to declare on the form details of any:
• State Pensions
• Pensions Credit
• Widow or, Widower's pensions
• Any dependants pensions that will not become payable until after your deferred benefits are paid from the Avon Pension Fund

Please note that unless you have substantial pension benefits from a current and/or pervious pension arrangement it is unlikely that you will exceed the Lifetime Allowance. To comply with the tax regulations the Lifetime Allowance form once issued must be completed, signed and returned. Until you have completed and returned the form to the Avon Pension Fund, payment of your benefit cannot be made. Failure to complete this form will result in late payment and a tax charge on all benefits.

A: You may apply to your former employer to have your benefits released early on ill health grounds. In such circumstances you should contact your previous employer’s Personnel Department, who will arrange an appointment with an independent Doctor qualified in Occupational Health Medicine.

A: You must notify us of any change in address as soon as possible. Please write to

Avon Pension Fund
Floor 3 South,
Temple Street,
Riverside,
Keynsham,
Bristol, BS31 1LA