Defined Benefit Pension Transfer

Diageo Pension Scheme

Do you have an old Diageo 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, depending on what category you belonged to.

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.

Diageo 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: Capita.

Website: https://www.mydiageopension.com/

Scheme Retirement Age: 60 – 67.

Are partial transfers allowed?

Under the statutory transfer rules it is possible to transfer a category of benefits and leave another category behind but beyond this there is no provision for partial transfers within each category of benefits.

Scheme Funding Position:

As of March 31, 2021, the funding level of the Diageo Pension Scheme stands at 105%.

Revaluation:

By law, if you left the Scheme after 1 January 1986, any pension in excess of GMP earned after 1 January 1985 must be increased in line with the Government’s minimum increase rate.

This is currently the rise in the Consumer Prices Index (CPI), up to 2.5% a year From 1 April 2012, Diageo changed the way it increases pensions in deferment.

From 1 April 2012 your deferred pension will increase in line with the CPI , up to 5% a year, provided the cost of making the extra increase above the legal minimum is affordable, given the Company’s and Scheme’s financial positions at the time.

Any increases that have already applied to your deferred pension, which will generally have been in line with the RPI, are not affected by the change. These increases will normally be applied when your benefits become payable or on transferring benefits to another pension scheme.

Final Salary – up to 31 March 2012 by RPI.

Escalation:

Pensions in payment increase on 6 April each year. Before that date, you will receive a letter to confirm your new level of pension together with an explanation of how this has been calculated.

If you have only started to receive your pension within the last 12 months, your first increase may be proportioned. The method for increasing your pension is different depending on whether you have reached GMP age (age 60 for females and 65 for males).

If you are under GMP age, the part of your pension earned up to 31 March 2012 will increase each year in line with the Retail Prices Index (RPI) up to a maximum of 5% each year. For pension earned after 31 March 2012 your pension will increase in line with the Consumer Prices Index (CPI) up to a maximum of 5% each year.

If you are a former member of the GrandMet Group Pension Fund, your pension earned up to 31 March 2011 will increase by at least 3% each year.

If you are over GMP age, your pension may comprise two elements – Guaranteed Minimum Pension (GMP) and pension in excess of GMP. Any GMP earned before 6 April 1988 does not increase. Any GMP earned after 6 April 1988 is increased by the Scheme up to a maximum of 3% each year.

This increase is based on the rise in the CPI over 12 months to the previous September. The balance of your pension earned up to 31 March 2012 will increase each year in line with the Retail Prices Index (RPI) up to a maximum of 5% each year. Any pension earned after 31 March 2012 will increase in line with the Consumer Prices Index (CPI) up to a maximum of 5% each year.

If you are a former member of the GrandMet Group Pension Fund, your pension earned up to 31 March 2011, in excess of any GMP, will increase by at least 3% each year. Although pensions, in excess of any GMP, are reviewed each 6 April, the increases are based on the rise in the RPI over the previous 12 months to January.

Flexible Options

None.

Death in Deferment

Calculation of lump sum: Return of contributions paid by the member or 5 year guarantee if the member dies after NRA. Any lump sum available on death is a discretionary lump sum. The Trustee is responsible for exercising their discretion as to the distribution and recipient(s) of any lump sum death benefit.

Proportion of spouse’s pension payable to spouse: 50% Spouse’s pension based on: deferred pension revalued to date of death An unmarried partner may qualify for a spouse’s pension where the requirements of the scheme rules and relevant legislation have been met and at the discretion of the Trustee.

A child’s pension will only be payable where the child meets the eligibility criteria under the scheme rules and relevant legislation.

Death in Retirement

Format of guarantee: Discretionary lump sum Period of guarantee: Balance of 5 years Any guarantee payable as a lump sum on death is a discretionary lump sum. The Trustee is responsible for exercising their discretion as to the distribution and recipient(s) of any lump sum death benefit.

Proportion of member’s pension payable: 50% Spouse’s pension based on pre or post commutation pension: Pre commutation An unmarried partner may qualify for a spouse’s pension where the requirements of the scheme rules and relevant legislation have been met and at the discretion of the Trustee.

A child’s pension will only be payable where the child meets the eligibility criteria under the scheme rules and relevant legislation.

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: 2.5

Slowest: 12.0

Average: 8.4

Need Diageo Pension Transfer Advice?

If you are a member of the Diageo 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 consultation.

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

Pension Transfer Consultation

Get Started Today

Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • 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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