Member Benefits


The Plumbing & Mechanical Services (UK) Industry Pension Scheme provides excellent benefits on retirement and also on death, before or after retirement, and all employees in the Industry should be aware of the importance of these benefits.

Unlike many other schemes, we have adopted a policy of increasing pensions in payment each year in line with increases in retail prices. Protection is also given to those who leave contributory membership, with their benefits being treated no less favourably than those who continue in membership.


Membership

Although originally set up for plumbing operatives and apprentices, membership of the scheme is not restricted, as many people believe, it is in fact open to ALL employees within the industry that includes office staff and other trades employed by a plumbing company. It is not open to the self-employed, it can however include directors of a "limited" company.

If you are employed in the Plumbing Industry and are aged 16 or over but are under age 65 then you are eligible to join the Scheme.

Should you wish to take up scheme membership you should approach your employer in the first instance. As the scheme is a group arrangement contributions must be made by both employer and employee, as such membership can only be confirmed if your employer is willing to contribute also.


Contribution Levels

An employee contributing at the basic rate will pay 3.75% of all earnings into the Scheme, however as the scheme is contracted out of the Second State Pension Scheme, lower National Insurance contributions are payable which, together with tax relief on contributions means that the net rate payable reduces to as little as 1.6% of earnings. The employer contribution rate is 7.5% gross.


Pension Benefits

Benefits start to accrue from the date of joining the pension scheme, there is no waiting period. The date the members first contribution is effective from will be the date pension credits start to accrue.

At the end of each scheme year members will be granted pension credits equal to 1¼ % of total gross earnings (equating to 1/80th salary for each year of service). These credits will then have bonus additions added annually which effectively “inflation proof” their value. On retirement a pension equal to the total value of credits + bonuses accrued throughout service is then payable. For a member with 40 years service this will give an annual pension equal to half (i.e. 40/80ths) of average salary.


Lump Sum Retirement Benefits

On retirement members have the option to “give up” up to a maximum of 25% of their pension fund value in return for a lump sum retirement benefit. Depending on value of potential benefits held elsewhere, all or part of this lump sum, would be tax-free.


Death Benefits

Should a contributing member die in service prior to retirement age there will be a lump sum payment made equal to the greater of 2 times pensionable earnings in last complete scheme year or 2 times annual basic rate applicable to the member's grade
immediately prior to death. This will be paid at Trustee discretion to entitled beneficiary or beneficiaries. There is also now the facility for members to complete an Expression of Wish Form (download .doc) advising the Trustee as to who they would like to receive any lump sum benefit due. Although not binding, the Trustee will take this into account when deciding and make every effort to meet members' wishes where possible.

Should a deferred member die prior to Normal Retirement Age the benefit payable will be total member contributions paid, with interest at the rate of 4% compound added for each complete scheme year from date of payment to date of death.


Spouse’s, Civil Partner’s, Dependants’ and Children’s Benefits

Also payable on death are pensions to spouses or civil partners, these will be equal to 50% of the pension the member would have received had they attained NRA the day before date of death.

Should there be no surviving spouse or civil partner the Trustee may decide to pay a pension to one or more dependants. The amount payable would be at the discretion of the Trustee.

Should the deceased member leave a dependant child (or children) then a pension benefit equal to 1% of the lump sum benefit payable to an Advanced Plumber will be payable to a maximum of four children. Payment will continue to each child until they attain the age of 18.

Full details of all Member Benefits can be found in our recently revised Scheme Guide (download guide pdf).


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