FAQs
FAQs
Pensions can be complicated, so it's natural you'll have questions about yours. These Frequently Asked Questions (FAQs) are designed to answer the most commonly asked questions about the Provident Staff Pension Scheme (the Scheme).
If you can't find the answer to your question here – or elsewhere on the website – please contact the Pensions Team.
What is a Final Salary pension scheme?
A Final Salary pension scheme provides a fixed retirement income. The benefits you build up are worked out using a defined calculation as set out in the Scheme Trust Deed and Rules. How much pension you'll receive is based on how many years you've been in the Scheme, the accrual rate (the rate at which you build up pension for each year of membership) and your salary at the date of leaving or retirement.
Who runs the Scheme?
The Trustee Board is made up of Member-Nominated Trustees, Company-Nominated Trustee and Scheme advisers. The Trustee Board is responsible for the administration of the Scheme in accordance with legislation and the Scheme Trust Deed and Rules.
Are my benefits secure?
Final Salary pension schemes provide a guaranteed income when you retire. There are safeguards and protections in place for Final Salary schemes. Visit the MoneyHelper website for further information.
How is my Final Salary pension calculated?
The amount you receive is based on your salary while you were employed by Provident and how long you were a member of the Scheme.
Who should I contact if I have a question about my pension?
For any queries or to update your personal information, you can contact the Pensions Team.
At what age can I take my Final Salary pension?
The Normal Retirement Date with the Scheme is the date of your 65th birthday. You can take your benefits from age 55 (increasing to age 57 from April 2028). Please visit the Taking your benefits page for more information.
Can I choose how I take my benefits when I retire?
You have the option to take a cash lump sum or a lifetime annuity but your Final Salary and Cash Balance benefits must be taken at the same time. For further information, visit the Taking your benefits page.
What happens to my pension if ill health prevents me from working?
Please visit the Ill health page for more information.
What happens if you die before taking your pension?
Please visit the Death benefits page for more information.
Can I transfer funds out of my pension?
Please visit the Leaving the Scheme page for more information.
If I paid into a Final Salary pension scheme, do I still receive a State Pension?
Yes!
The State Pension is a regular payment from the government that most people can claim when they reach their State Pension age (SPA). The SPA isn't the same as your retirement age and varies according to the year you were born and gender. The amount you receive is also dependent on your National Insurance record. Check the amount of State Pension you're entitled to.
Glossary
Additional voluntary contributions (AVCs)
Contributions that you can make in addition to your normal contributions to an occupational pension scheme to increase your retirement benefits.
Cash Balance
Cash Balance is a ‘defined benefit’ type of pension arrangement. This means that a known proportion of your earnings will build up each year and be credited to your Retirement Account.
Company
Vanquis Banking Group (formerly Provident) or, as appropriate, any of the companies participating in the Scheme.
Consumer Price Index (CPI)
It measures the average change in prices paid by consumers over a period of time for a basket of goods.
Defined benefit
An employer-based program that pays benefits based on factors such as length of employment and salary history.
Defined contribution
Where your own contributions and your employer's contributions are both invested. The proceeds are used to buy a pension and/or other benefits at retirement.
Final Salary
Your base salary received in the year ending on the day that you retire, leave the Company or die.
Guaranteed Minimum Pension (GMP)
A minimum pension normally provided through a workplace pension scheme to people who contracted-out of the additional State Pension between 6 April 1978 and 5 April 1997.
Lifetime annuity
A series of regular payments (normally paid on a monthly basis) made until a particular event occurs (usually death) and, in effect, is another name for a pension.
Normal Retirement Date (NRD)
Usually the earliest date at which a member of a defined benefit scheme can take their pension. This is your 65th birthday.
Pensionable Earnings
Pensionable Earnings were used to calculate your contributions to the Cash Balance section and the credit which was made to your Retirement Account.
Pensionable Earnings were your gross earnings from the Company and were calculated monthly. No account is normally taken of fluctuating emoluments (e.g. designated bonuses), any benefit derived from any employee share scheme or benefits in kind (e.g. company car, private health scheme).
Pensionable Service
This is the number of years and complete months you have been a member of the Scheme.
Pensionable Service ends on your NRD, or if earlier, the date you leave the Company’s employment, opt out of the Scheme, retire or die.
Pensionable Service within the Final Salary section ended on the day you left that section and in no case later than 31 December 2012.
Retirement Account
Under the Cash Balance Section, your benefits on retirement are provided from your Retirement Account, which is credited with 20% of your Pensionable Earnings for each year of Pensionable Service as a member of that section. Additional revaluations are also added to your Retirement Account.
Retail Price Index (RPI)
This is one of two measures of consumer inflation produced by the UK’s Office for National Statistics and measures certain types of cost escalation.
Scheme
The Provident Staff Pension Scheme.
Spouse/registered civil partner
Widow, widower or registered civil partner of a deceased member (with Trustee discretion to provide for other dependants).
State Pension age (SPA)
Please be aware that the SPA is under review and may change in the future. For those born after 5 April 1960, there will be a phased increase in SPA to age 67, and eventually 68.