Your options on retirement

The ZF UK Pension Plan provides certain options when you retire. However, you should be aware that there may be additional options available if you were to Transfer Out and receive your pension from an external pension provider.

The options available within the Plan depend on the Rules of the Section of the Plan of which you are a member.

Closed TRW Steering, Closed TRW UK, ZF Great Britain and ZF Lemforder

You may be able to exchange part of your pension for a tax-free cash lump sum.

Tax-free cash

You can choose to exchange part of your pension at retirement for tax-free cash. You only have one opportunity to do so just before you retire. Once you have retired you cannot change your mind.

If you were to transfer out of the Plan at the point of your retirement the amount of tax free cash available may be higher than that available from the Plan.

All other Sections

You have the following three options:

• Tax-free cash

  You can choose to exchange part of your pension at retirement for tax-free cash. You only have one opportunity to do so just before you retire. Once you have retired you cannot change your mind.

  If you were to transfer out of the Plan at the point of your retirement the amount of tax free cash available may be higher than that available from the Plan.

• A Temporary Pension

  If you retire before State Pension Age you have the option to convert part of your lifetime pension into a Temporary pension. This will be paid from your date of retirement to the State Pension Age applicable to you, when retiring from the Plan. Please be aware that it will not be paid to a later date if the Government subsequently increases your State Pension Age. State Pension Age is the age at which you are entitled to receive a pension from the State. The State Pension Age is currently increasing for both men and women. For men it is currently 65, this will be increasing to 66 from 2024 to 2026, to 67 from 2034 to 2036, and to 68 from 2044 to 2046. For women born before 06 April 1950 your State Pension Age is 60, if you were born after 05 April 1955 it is 65. However from 2024 a women's State Pension Age will increase in line with a male's.

  Please be aware the dates these ages change are subject to change by the Government. For further information and to find out your exact State Pension Age please use the State Pension Age calculator.

• Additional spouse’s pension

  You can exchange part of your lifetime pension at retirement for an additional pension for your spouse in the event of your death.

  The ZF UK Pension Plan already provides automatic spouse's benefits. The option of a spouse's additional pension could however be of interest to you.

  By taking this option you can increase your spouse's pension from 50% of your pension, before you exercise any options, up to a maximum of 60%.