Defined Benefit Pension Transfer

Asda Group Pension Scheme

Do you have an old Asda Group Pension Scheme you are thinking about transferring into a more flexible arrangement?

Below is a general overview of what the scheme benefits are, these might vary from member to member.

If you would like to find out if transferring your pension is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

Asda Group Pension Scheme

Disclaimer

The information we provide here is our understanding of the pension scheme and may not be the latest, there may also be some detail missing. It is provided in good faith as an overview of the details we hold. There has not been any endorsement or otherwise of these details by the pension scheme, their sponsoring employer or scheme administrators.

This is a partial summary of the complex benefits provided through potentially many schemes, where retirement options can be very different within the same scheme or the same individual sections of those schemes.

If you are either a current or deferred member of the pension scheme and wish specific information about your personal benefits, the scheme administrator will need to be contacted.

Overview

Administrator: Rothesay Life – These are now buy-out policies (from 28 June 2021).

Scheme Retirement Age:

GMP age is 65 but members can take benefits from age 60 unreduced.

Are partial transfers allowed? No.

Scheme Funding Position:

The scheme was in deficit before the members were transferred to Rothesay under a buy-out scheme.

Revaluation:

Deferred pension earned to 5 April 2009 increases in line with statutory increases with a maximum of 5% pa.

Deferred pension earned after 5 April 2009 increases are in line with statutory increases with a maximum of 2.5% pa.

For members who left before 1 Jan 1991 any pension earned before 1 Jan 1985 is increased by 3% pa guaranteed.

For members who were active at the date of scheme closure, 12 Feb 2011 and left the company before 17 Sep 2019, the deferred pension will increase by the overall increase in the CPI for each complete year of service between the date of the scheme closing and date of leaving Asda.

For members who were active at the date of scheme closure, 12 Feb 2011 and left the company after 17 Sep 2019, the deferred pension will increase by the overall increase in the CPI for each complete year of service between the date of the scheme closing and date of taking benefits.

Escalation:

The pension increases in line with RPI up to a maximum of 5% pa.

Flexible Options

If a member joined the scheme before 1 May 1990 and left before 1 Jan 1995, they may be able to take their benefits from age 50.

Subject to the receipt of satisfactory medical evidence, payment may be taken at any time on the grounds of ill-health or incapacity. An ill-health pension will be reduced for early payment whereas no reduction will be applied in the event of incapacity.

Death in Deferment

A spouse’s pension at the rate of 2/3rds of the member’s pension revalued to date of death. If there is no spouse, this could be paid to a financial dependent at the discretion of the trustees.

Children’s pensions equal to 50% of the spouse’s pension would also be paid and split equally between eligible children up to age 18 (or 21 if still in full-time education).

In addition, a refund of contributions would be paid to the beneficiaries determined by the Trustees of the Scheme.

Death in Retirement

A spouse’s pension at the rate of 2/3rds of the member’s pension at date of death ignoring any pension given up for a cash sum. If there is no spouse, this could be paid to a financial dependant at the discretion of the trustees.
Children’s pensions equal to 50% of the spouse’s pension would also be paid and split equally between eligible children up to age 18 (or 21 if still in full-time education).

In addition, a balance of five years’ pension installments on death within the first five years would be paid as a lump sum.

Transfer Timescales

The timescales below are based on the entire transfer process from the initial enquiry, through to advice, and eventual completion of the transfer, in months.

This information is based on our own scheme specific real-world data gathered over an 18 month period. To be clear and ensure there is no risk this information can be deemed misleading, it is our own data for the entire process, which includes our own very thorough and complex regulatory analysis and advice process, in addition to the gathering and provision of accurate information from the scheme administrators and their subsequent completion of any pension fund transfer requests. Future timescales could vary.

Fastest: 3.4

Slowest: 12.0

Average: 7.8

Need Asda Group Pension Scheme Transfer Advice?

If you are a member of the Asda Group Pension Scheme and would like to know if transferring or cashing in your pension at 55+ is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.

Get Started Today

Free Pension Transfer Guide & Initial Consultation

Free Pension Transfer Guide & Consultation

Complete the form below to receive your Free Pension Transfer Guide.

If you would like to find out if transferring or cashing in your pension is suitable for you, we can provide a free initial consultation known as abridged advice.

Simply return the enquiry form included in the guide and post it back in the free post envelope provided.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • Whether you have the right type of pension to transfer.
  • What your plans are for retirement.
  • How much cash you can release.
  • Whether your existing pension remains the best fit for you.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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