Your pension
This section is for members who are currently in receipt of a pension from the ZF UK Pension Plan.
You can review your payslips and P60 information on the ZF UK Pension Plan Member Website.
Pension Increases
How your pension increases depends on the section of the Plan in which you are a member.
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All pensions in payment are reviewed each year by the Trustee. Pensions increase by an index up to a maximum of 7%. The Trustee has discretion as to which index it uses and it currently uses the Consumer Prices Index (CPI).
If the CPI is greater than 7%, additional increases may be granted at the discretion of the Company.
After age 65 for men and 60 for women, the above increases only apply to that part of your pension that is in excess of any Guaranteed Minimum Pension (GMP) you may have accrued. Any GMP you earned before 6 April 1988 is not increased by the Plan, but may be increased by the State as part of your State Pension. Any GMP you earned after 5 April 1988 is increased by the Plan by CPI up to a maximum of 3%. If the CPI is above 3% additional increases may be paid by the State as part of your State Pension.
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All pensions in payment are reviewed each year by the Trustee. Pensions increase by Limited Price Indexation (LPI). LPI is defined by the Government as the rise in the Consumer Prices Index (CPI) up to a maximum annual percentage increase. As at 1 April 2006, this was 2.5% a year.
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All pensions in payment are reviewed each year by the Trustee. Pensions increase by Limited Price Indexation (LPI). LPI is defined by the Government as the rise in the Consumer Prices Index (CPI) up to a maximum annual percentage increase. As at 1 April 2004, this was 5% a year. As from 6 April 2005 the maximum annual percentage was 2.5%.
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All pensions in payment are reviewed each year by the Trustee. Pensions in payment increase in line with increases in the Retail Prices Index, up to a maximum of 5% a year.
After age 65 for men and 60 for women, the increase only applies to that part of your pension that is in excess of any Guaranteed Minimum Pension (GMP) you may have accrued. Any GMP you earned before 6 April 1988 is not increased by the Plan, but may be increased by the State as part of your State Pension. Any GMP you earned after 5 April 1988 is increased by the Plan by CPI up to a maximum of 3%. If the CPI is above 3% additional increases may be paid by the State as part of your State Pension.
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Your pension in respect of service before 1 April 1992 will increase by 2.5% each year.
For service after that date, pensions in payment are reviewed each year by the Trustee. Pensions in payment increase in line with the increase in the Retail Prices Index (RPI), up to a maximum of 5% a year.
After age 65 for men and age 60 for women, the increase in respect of your service after 31 March 1992 only applies to that part of your pension that is in excess of any Guaranteed Minimum Pension (GMP) you may have accrued. Any GMP you earned after 31 March 1992 is increased by the Plan by CPI up to a maximum of 3%. If the CPI is above 3% additional increases may be paid by the State as part of your State Pension.
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Your pension in respect of service before 30 June 2001 will increase by 5% each year.
For pension in respect of service between 1 July 2001 and 31 March 2005, pensions in payment are reviewed each year by the Trustee and will increase by the Retail Prices Index (RPI) up to a maximum of 7%, with a minimum increase of 5%.
Your pension in respect of service between 1 April 2005 and 5 April 2006 will increase by 5% each year.
For service after 5 April 2006 pensions in payment are reviewed each year by the Trustee. Pensions in payment increase in line with the increase in the RPI, up to a maximum of 5% a year.
The increases only applies to that part of your pension that is in excess of any Guaranteed Minimum Pension (GMP) you may have accrued. Any GMP you earned before 6 April 1988 is not increased by the Plan, but may be increased by the State as part of your State Pension. Any GMP you earned after 5 April 1988 is increased by the Plan by the Consumer Prices Index (CPI) up to a maximum of 3%. If the CPI is above 3% additional increases may be paid by the State as part of your State Pension.
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All pensions in payment are reviewed each year by the Trustee. Pensions in respect of service before 6 April 2006 increase in line with increases in the Retail Prices Index (RPI) up to a maximum of 5%. For service after that date, pensions in payment increase in line with increases in RPI up to a maximum of 2.5%,
The increase only applies to that part of your pension that is in excess of any Guaranteed Minimum Pension (GMP) you may have accrued. Any GMP you earned before 6 April 1988 is not increased by the Plan, but may be increased by the State as part of your State Pension. Any GMP you earned after 5 April 1988 is increased by the Plan by the Consumer Prices Index (CPI) up to a maximum of 3%. If the CPI is above 3% additional increases may be paid by the State as part of your State Pension.
How will my pension be paid?
Your pension is paid to you monthly in arrears, on the 20th day of each month (or the preceding working day). It is paid directly into your bank or building society account.
Your pension will be paid to you after deduction of income tax. Pensions are subject to income tax in the same way as earnings from employment.
You will receive a Pension Payment Advice slip with your first pension payment, and thereafter, only if there is a change in your net pension of £5.00 or more. The Pension Payment Advice will show you the amount of your pension before and after tax.
You are able to view monthly Pension Payment Advice forms online. If you wish to access this information, you must register for the ZF UK Pension Plan Member Website.
How long will my pension be paid for?
Your pension will be paid from the date you retire for the rest of your life. If you die in retirement before you have received your pension for five years a tax-free lump sum will be payable. It will be the balance of five years pension (based on the amount of your pension at date of death excluding any Temporary Pension). Future increases are not taken into account. For further information on the balance of guarantee please look at this example calculation.