Defined Benefit Pension Transfer

Tesco PLC Pension Scheme

Do you have an old Tesco PLC 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.

Tesco PLC 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: Tesco Pension Trustees Ltd.

Website: https://pensionwebsite.co.uk/login.

Scheme Retirement Age:

When your pension starts to be paid in full depends on when it was built up.

Pension built up before 1st June 2012 is paid in full when you reach age 65.

Pension built up from June 2012 will be paid in full when you reach age 66 years and 155 days.

However the retirement ages can vary from age 60 for Pre 1st June 2012 benefits and age 61 187 days for Post 1st June 2012 benefits depending on statutory rulings and the date you joined the scheme.

Are partial transfers allowed?

Yes, if your pension includes any GMP this must be transferred out in full or not at all.

Any post 1997 service has to be transferred out in full or not at all and a minimum partial transfer of £30,000 must be taken.

You must have at least £2,000 pa of annual pension left in the scheme after taking the partial transfer.

Scheme Funding Position:

In 2023, the Tesco PLC Pension Scheme transitioned from a £2,121 million surplus to a £294 million deficit.

Revaluation:

Statutory increases of inflation for all excess benefits.

Escalation:

Excess pension accrued up to 1st June 2012 increases by RPI max 5%, pension accrued after 1st June 2012 increases by CPI 5% in any one year.

Flexible Options

Discretionary increases may be applied to pensions in payment on top of standard increases for all benefits. The increases take into consideration inflation, scheme funding position and company finances.

Death in Deferment

If you die before your pension starts to be paid your dependants would receive a lump sum of 5 times your pension increased to the date you died.

Your spouse would also receive 60% of your pension entitlement.

Children’s pensions are payable in addition to the spouses pension until age 16 (or under 23 if in full time education) If you have one child they will receive 25% of your pension.

Two or more children will receive 40% of your pension divided equally between them.

Death in Retirement

If you die after your pension starts to be paid, the balance of the first 5 years pension before any tax free cash is taken is paid as a lump sum, if you due In the first 5 years your pension is paid.

Your spouse would also receive 60% of your pension entitlement.

Children’s pensions are payable in addition to the spouses pension until age 16 (or under 23 if in full time education) If you have one child they will receive 25% of your pension. Two or more children will receive 40% of your pension divided equally between them.

If no spouses pension is payable, the pension may be paid to a dependant instead.

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: 2.8

Slowest: 15.7

Average: 6.9

Need Tesco Pension Transfer Advice?

If you are a member of the Tesco PLC 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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