Summary of Schedule 1:
Schedule 1 covers all employees who joined between 1 November 2003 and 31 October 2013.
Schedule 1 provides a pension based on your final basic salary, plus financial protection for your family if you die in service or, an immediate income if you have to give up work permanently due to serious ill-health.
Visit "Your Pension Record" to get secure access to view your own pension record, run retirement quotes or update your Expression of Wish nomination (for the life assurance benefit).
The Retirement Account
There is an investment section called the Retirement Account which provides either cash or extra pension on retirement.
The Retirement Account is invested with Legal & General. You can visit their website to check the value of your Account and change your investments.
Willis towers watson epa - your pension record
Legal & general - manage your account
How it works
Protection for your family on death
Death in Service
Schedule 1 provides life assurance of three times your Basic Salary if you die in service, plus the value of your Retirement Account.
Expression of Wish
The lump sum does not form part of your estate, instead the Trustee has discretion to decide who receives the payment. You should therefore complete an Expression of Wish nomination for the Trustee to take this into account. Please access "Your Core Pension Record" to update your Expression of Wish.
Your surviving Spouse would receive a pension calculated as 50% of your accrued pension plus 25% of the pension that would have otherwise been paid to you from age 65, based on your Final Basic Salary at the date of your death.
A Spouse normally means your married partner or someone living with you as husband and wife. If you do not have a Spouse but you do have someone who is financially dependent on you, the Trustee has a discretion to pay them a pension on your death.
If you are no longer paying into the Scheme
If you have left the Scheme or you are already in receipt of a pension please email email@example.com for details of the benefits payable on death.
Early retirement due to ill health
An immediate pension could be payable to you if you are forced to give up work at any age as a result of permanent ill-health.
The circumstances in which you could retire due to ill-health, and the level of pension are subject to certain conditions and you must have consent of both the Trustee and your employer.
If ill-health prevents you from carrying out your normal job you might be considered for an incapacity pension. This could provide you with an immediate pension based on your accrued benefits and the Trustee may decide to waive or reduce the reduction factor usually applied on early retirement.
If ill-health prevents you from ever carrying out any regular employment for any employer you might be considered for a chronic ill-health retirement. This could provide you with an immediate unreduced pension based on what you would have received had you remained in service to age 65 (if you are in Schedule 1 half of your future service would be included in the calculation).
Process for making an application
Agreement for ill-health retirement is required from both your employer and the Trustee. The decision will be based on medical evidence and taking into account your particular circumstances. Please speak to your HR department if you think this may apply to you.
Once an ill-health pension has been granted the Trustee may carry out periodic reviews and could reduce, suspend, or stop the ill-health pension if your health improves.
For members of Schedule 1 different ill-health retirement provisions apply if you did not join the Scheme within 6 months of becoming eligible.
Leaving the Company
Opting Out of the Pension Scheme
If you opt out of the Scheme but remain in employment the same options as described above will apply.
If you subsequently wish to rejoin the Scheme you could only join the Airbus UK Retirement Plan and there would be restrictions on death in service and ill health benefits.
See Opting Out of the Scheme page for more details.
Moving to another Airbus company
If you transfer to another Airbus company in the UK that participates in the Scheme you may be able to continue your membership without a break in pensionable service.
If you transfer to another Airbus company overseas you may be able to stay in the Scheme if your employment is treated as a secondment. Please contact your HR Department if this may apply to you.
Saving more for your retirement
How does Smart Pensions work?
Additional Voluntary Contributions (AVCs)
Voluntary payments made in addition to your contributions to the Scheme. They will be invested to provide extra benefits at retirement.
The maximum amount of pension benefits that can be built up in any one tax year without attracting a tax charge. The Annual Allowance for tax year 2017/18 is £40,000, but this may be less if you are an additional rate tax payer (45%) or if you have flexibly accessed benefits elsewhere. Please contact the Pensions Team for more information.
Contributions you are required to make towards Core Benefits.
Your annual rate of basic pay received from your employer. The Scheme limits the level of pay that can count towards contributions and benefits. This is called the Scheme Earnings Cap (see Scheme booklet for details).
Final Basic Salary
Basic Salary averaged over the last 12 months ending on the last day of the calendar month in which you leave service or die (whichever occurs first). This is subject to the Scheme Earnings Cap (see Scheme booklet for details).
Lifetime Allowance (LTA)
The personal limit against which the capital value of an individual's total pensions (not including State pensions) is measured. Any benefits above this limit will be liable for an additional tax charge. The Lifetime Allowance for tax year 2017/18 is £1 million.
Normal Pension Age
Your 65th birthday.
Airbus Operations Limited, Airbus Defence and Space Limited (the Principal Employer), Airbus Limited, Airbus Helicopters UK Limited, SSTL and any other employer admitted by the Principle Employer and the Trustee to the Scheme.
The number of years and complete months during which you have contributed to the Scheme.
The fund in which the the Participating Employer's contribution of 2% of your Basic Salary, plus any additional contributions you pay are invested.
Which is the 6th April to the following 5th April
We use salary sacrifice instead of standard deductions from pay which means that both you and the company pay less National Insurance.
Your legal husband or wife by marriage.
The Trustee also recognises Civil Partners in respect of benefits accrued after 5 December 2005, or the date entered into a civil partnership whichever occurs first.
The Trustee may at their discretion include a person who in their opinion is/was living with you as husband and wife but to whom you are not legally married.