Why avail of PIE?

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By now, we would hope that you have a good idea of what a PIE offer is.

If not, click here to watch the video

Pension Increase Exchange (PIE)

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The Company and Trustees wish to ensure that you are properly informed around the advantages and disadvantages of the option to exchange your pension increases, so that you can make the decision which is right for you.

Here are what we consider to be the main considerations in making this decision. Please click on the considerations that you feel most relevant to you and you will see the pros and cons of each.

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Your Lifestyle

How this could affect you …

Your Lifestyle

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Potential reasons for accepting offer

You may prefer to receive a higher pension now while you feel able to enjoy it, or you may have higher outgoings now.

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Potential reasons for rejecting offer

You may prefer to receive a higher pension later in retirement if you are concerned about inflation and the future cost of living .

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Inflation

How this could affect you …

Inflation

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Pension increases offer protection against cost of living increases. It should be noted that for some people, part of the pension increases are provided at the discretion of the Company.

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Potential reasons for accepting offer

You may think that the immediate uplift offers sufficient protection against future inflation, or you may expect future inflation to be low.

Some of the increases payable to you may be at the discretion of the Company and you may feel that they will not be granted in line with inflation.

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Potential reasons for rejecting offer

You may decide that the uplift does not offer enough protection against future inflation, or you may expect future inflation to be high.

You may have no doubts about the discretionary part of your pension increases (if any) being paid for your lifetime in line with inflation .

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Your Health

How this could affect you …

How long you might live

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Potential reasons for accepting offer

You may feel that you won’t live until the age at which you are expected to incur a loss (as set out in your personal illustration).

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Potential reasons for rejecting offer

You may feel that you will live beyond the age at which you are expected to incur a loss (as set out in your personal illustration).

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Pension Security

How this could affect you …

Security of Pension Benefits

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Under current legislation, future pension increases receive a lower level of protection on a scheme wind up than the current pensions being paid.

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Potential reasons for accepting offer

You may appreciate the additional security of benefit which would come from exchanging your future pension increases for a higher level pension.

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Potential reasons for rejecting offer

If the Scheme does not wind up, or does so when it is fully funded, the level of protection given to pension increases will not be relevant.

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Social Welfare

How this could affect you …

Interaction with Social Welfare Benefits

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Potential reasons for accepting offer

For younger members it helps to “bridge the gap” before their state pension commences (age 66/67/68) .

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Potential reasons for rejecting offer

This may not be a concern for you or you may already be in receipt of the State pension.

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Taxation

How this could affect you …

Taxation and Means Tested Benefits

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Potential reasons for accepting offer

Taking the offer may not impact the taxation rate you pay or any means tested benefits you are in receipt of.

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Potential reasons for rejecting offer

Taking the offer may mean that you pay a higher rate of taxation or it may disqualify you from receiving means tested benefits.

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By now, we would hope that you have a good idea of what a PIE offer is.

Your Lifestyle

Inflation

Your Health

Pension Security

Social Welfare

Taxation

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