What is a Pension Increase Exchange

The pension you receive from the DB Scheme each year currently increases in line with inflation (subject to an annual cap in some cases).

• The company are now offering you an option to receive a higher pension now by giving up these future pension increases.
• If you accept this option, your overall pension will increase to a higher flat-rate pension for life but you will no longer receive future increases on your pension.
• The benefit to the company is that pension liabilities are more predictable in the future as increases are not linked to inflation

Why is your former employer making this option available?

There are two main reasons why this option is being offered.

• For members, the option provides a choice and flexibility which was not previously available to pensioners.
• For the Scheme, where members decide to take up the option, there will be a greater degree of predictability around future pension payments and this will reduce the risk involved in running the Scheme.