“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
birthday celebrations.”
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 price inflation. Protection is also given to those
who leave contributory membership, with their benefits
being treated no less favourably than those who continue
in 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 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 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 means that the net contribution
level can reduce to as less than 2% 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 1.25% 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 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 the facility for members to complete an
Expression
of Wish Form (download .doc) 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 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.
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 Scheme Guide (download
guide pdf).
