If you decide to stop contributing to the Tesco Retirement Savings Plan or leave Tesco, you can:
1. Leave your savings where they are
Your savings will remain invested until you choose to take them (which can be at any time after age 55). You can continue to choose which funds to invest in, but you can’t pay any more contributions into the Tesco Retirement Savings Plan. If you choose this option, you can transfer your savings at a later date if you want to.
2. Transfer the value of your savings to another pension arrangement
You can choose to transfer your savings into a new employer’s pension scheme or to a personal pension plan if you have one. To arrange this, you should contact the scheme you wish to transfer into.
Tesco and the Trustees have agreed on the current range of investments. The Trustees will continue to monitor investment suitability and performance.
If you're off work due to sickness, contributions will continue to the Plan, as long as you're receiving pay from Tesco. Both your own and Tesco’s contributions will be based on the pay you actually receive during this period.
If you're seriously ill (certified by a registered medical practitioner that life expectancy is less than a year) you can take your retirement savings before age 55. Benefits are subject to the Lifetime Allowance, other conditions may apply.
If you're in poor health and do not expect to be able to return to work in the future, it may be possible to access your retirement savings early.
To find out more call the Tesco Pensions Helpline on 0345 070 0090.
If you die while still employed by Tesco, a lump sum will normally be paid to your nominated beneficiary. The amount payable will normally be:
Cash worth 5 times your annual pay if you're still contributing to the Plan or 1 times pay if you have stopped contributing before you die. In addition.
The value of your Tesco retirement savings at the date of your death.
If you die having left Tesco, the value of your Tesco retirement savings at the date of your death will normally be payable a a lump sum.
You should complete an Expression of Wish Form and make sure it’s kept up to date. The Trustees don’t have to follow your wishes but they’ll always use it to guide their decision.
Although it can be paid in the form of a lump sum, the Trustees may choose to use part or all of the value of your savings to buy a regular income for one or more of your dependents.
If any of your dependents are under 18 at the time of your death, the Trustees may pay the funds into a Trust for their benefit until they reach the age of 18. Please see the Scheme Booklet for further details.
If you get divorced, the pension savings you've built up are generally taken into account by the court when deciding on a divorce settlement or dissolution of a registered civil partnership.
There are three ways that the court can deal with your pension entitlement:
The value of your savings can be 'offset' against other financial assets, like the marital home.
Your savings can be subject to a 'pension sharing' order, where a proportion of your pension is given to your ex-spouse or registered civil partner. Your savings are then reduced as a result.
Part of your savings can be 'earmarked' through a court order for your ex-spouse or registered civil partner to receive when you retire.
To find out more call the Tesco Pensions Helpline on 0345 070 0090.
You can stop contributing to the Tesco Retirement Savings Plan at any time, by completing the Stop Contributions Form.
However, you should give serious consideration to the consequences of not saving enough for your retirement.
You should also be aware that if you stop contributing, Tesco will stop contributing to your savings, too and you will lose out on valuable life cover.
