“Thank you all
for handling my pension so efficiently. Your
letter arrived exactly on my birthday, including
my lump sum cheque. What a way to start my
The Plumbing & Mechanical Services (UK) Industry
Pension Scheme is a career average scheme which provides deferred benefits on retirement
and also on death. This means you build up benefits based on your salary for each year you are a contributing member, and each year your benefits are revalued until you retire.
The Scheme aims to increase pensions in payment each year in line
with price inflation when there are sufficient funds to do so. Protection is also given to those
who leave contributory membership, with their benefits
being treated no less favourably than those who continue
The option to transfer retirement savings from other pension arrangements into the Scheme will be withdrawn after 5 April 2017.
The Scheme is closed to new employers. However, those employers already operating the Scheme can use the Scheme for new employees or auto-enrolment.
Although originally set up for plumbing operatives and
apprentices, membership of the scheme is not restricted. The Scheme is open
to ALL employees
within the industry including office staff and other
trades employed by a plumbing company. It is not open
to the self-employed although it can 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 and your employer currently participates in the Scheme 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
Members contribute a fixed percentage of Earnings. The contribution rates vary between Benefit Scales. Members receive tax relief on their pension contributions. Employers contribute twice the member contribution rate.
The Scheme's contribution rates will be increasing in April 2017 and April 2018.
Please find attached a summary of frequently asked questions which has been collated to assist with the introduction of the 2017 Contribution scale.
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 a certain percentage, in most cases 1.25%
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.
A personal Certificate of Pensions Credit is issued annually to all members detailing benefits accrued to date. An example certificate can be viewed at Your Certificate Explained.
The Benefits Department will contact you about 6 weeks before your Normal Retirement Date to explain your pension benefits and options.
Lump Sum Retirement
On retirement members have the option to “give
up” some of their pension in return for a lump sum cash benefit. Depending on the
value of potential benefits held elsewhere, all or part
of this lump sum, would be tax-free.
Some members with small pensions may be able to exchange all of their pension credits for a single cash lump sum.
If a contributing member dies in service before
retirement there will be a lump sum payment made
based on a multiple of the member's pensionable earnings before they died. This will be paid at Trustee
discretion to entitled beneficiary or beneficiaries.
There is also the facility for members to complete an
Expression of Wish Form advising the Trustee
who they would like to receive any lump sum benefit
due. Although not binding, the Trustee will take this
into account when deciding and will make every effort to
meet members' wishes where possible.
Should a deferred member die prior to Normal Retirement
Age the benefit payable will be equal to the 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.
Civil Partner’s, Dependants’ and Children’s
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
No spouse's, civil partner's, dependant's or children's pensions are payable following the death of a member on the 2017 Benefit Scale.
Full details of all Member Benefits can be found in our online Scheme Guide.