When you're thinking of voluntary retirement, it’s best to have all the information you need to hand and know what to expect, so we've provided this informal guide.
The process, considerations and timescales will be different however if your retirement will be on the grounds of one of the following:
In order to check what you'll need in retirement, and if your pension from our Fund will be enough, you can check your latest annual benefit statement and your My Pension Online account. On your account, you can project what your pension might be (including early payment reductions) if you retire on certain dates.
We also suggest that you check:
When you have decided on your retirement date
Once you have considered all your options and you've decided on a date to retire, you'll need to talk to your manager.
It's best to start by checking the notice period your contract requires you to give if you are considering voluntary retirement.
If you're considering taking flexible retirement, you'll need to speak with your employer to establish if they can approve your request, and if they can, you will need to ask what their process is regarding your ongoing position.
Once you are certain of your retirement date, you must put your wishes in writing to your employer.
When your retirement date has been set
When you've set your retirement date, your employer will let us know. If you receive the same pay each month, your employer can tell us up to 4 weeks before you retire. If you receive variable pay however, your employer will let us know after your final pay has been processed.
We suggest that you plan for any delays that may be experienced by our Fund in receiving your final data from your employer, as this may have an impact on when you receive your first pension payment.
We'll work out your pension benefits
Once we've received your leaving information from your employer, we’ll write to you with a letter entitled ‘provisional details’ of your pension benefits at your chosen retirement date.
If you're taking your benefits early, the initial letter includes a:
- provisional reduced and unreduced comparison of your pension benefits
- bank details form
- 'pension benefits option form', which is a declaration of your decision to take reduced benefits early, or wait and defer you pension benefits until you want them, but we must start paying your pension benefits by age 75
- lifetime allowance declaration form
- lump sum conversion option form (including any AVCs)
- personal details form (which asks for a form of identification, and your current marital status)
The sooner you return this information, the sooner we can pay or defer your pension benefits in line with your wishes.
If you have chosen to take payment of your pension benefits, when we receive your reply we'll write to you. You letter will include a certificate of lifetime allowance from Derbyshire Pension Fund.
If your letter is dated after the 15th of the month, your first pension payment is likely to be made to your chosen bank account at the end of the following month.
We'll always pay your pension on the last working day of the month.
Lump sum payment
You should receive payment of any due lump sums within 10 working days from the date your benefits become payable, or 10 working days from the date you receive the letter.
Once you're in receipt of your pension benefits, you're classed as a pensioner and will need to refer to the pensioner member section for information that will affect you.