Contents
In this section we cover the benefits that are payable to you from the Plan.
There are also benefits that may become payable to your loved ones after your death. You can find more information about these benefits in the Benefits if I die section of this website.
The retirement income you receive from the Hewlett-Packard Retirement Benefits Plan will be:
All pensions when in payment are reviewed each year in April and therefore may be entitled to receive an increase.
Different rates of increase are applied to different elements of your pension.
How does my pension increase?
The table below provides a summary of the pension increases for members who left service on or after 1 April 1997.
For members who left service prior to 1 April 1997, pension increases are discretionary except for members whose pension was already in payment on 1 April 1997 whose pensions increase by the lesser of 2/3 RPI and 2/3 of 5%.
Pension in excess of the Guaranteed Minimum Pension (GMP) for Pensionable Service prior to 1 April 1997 |
Your pension increase will be equal to a proportion of two-thirds of the annual increase in the RPI. The proportion will depend on when you join and leave Pensionable Service – the earlier you leave Pensionable Service the lesser the proportion. |
| Pension for Pensionable Service on or after 1 April 1997 | Increase in line with the increase in the Retail Price Index (RPI) up to a maximum of 5% p.a. |
| GMP attributable to service before 6 April 1988 | No increase |
| GMP attributable to service on or after 6 April 1988 | Increases in line with inflation (as determined by the Government) up to a 3% p.a. cap. |
Note 1: These increases do not generally apply to benefits in respect of additional voluntary contributions, transfers in or discretionary benefits.
Note 2: Special rules apply for increases to death in service pensions.
Note 3: From state pension age the state checks whether your GMP in payment is at least as high as a notional amount of additional state pension. This notional pension increases fully in line with inflation. If the GMP is lower than this notional pension, you will be paid an additional amount from the state together with your basic state pension.
Note 4: the calculation is different for members who have more than 40 years’ service.
However, your GMP at state pension age may be higher than this notional pension and you may not receive any additional amount until many years after your state pension age – if ever.
Bank of Ireland members
How does my pension increase?
The table below provides a summary of the pension increases:
| Pension in excess of the Guaranteed Minimum Pension (GMP) for Pensionable Service up to 5 April 1997 | Increased in line with RPI up to a maximum of 3% per annum |
| Pension accrued in respect of Pensionable Service between 6 April 1997 and 5 April 2005 | Increase in line with inflation (as determined by the Government) up to a maximum of 5% p.a. |
| Pension accrued in respect of Pensionable Service after 6 April 2005 | Increases in line with inflation (as determined by the Government) up to a maximum of 2.5% per annum. |
| GMP attributable to service before 6 April 1988 | No increase |
| GMP attributable to service on or after 6 April 1988 | Increases in line with inflation (as determined by the Government) up to a 3% p.a. cap. |
Note 1: These increases do not apply to benefits in respect of additional voluntary contributions, transfers in or discretionary benefits.
Note 2: From state pension age the state checks whether your GMP in payment is at least as high as a notional amount of additional state pension. This notional pension increases fully in line with inflation. If the GMP is lower than this notional pension, you will be paid an additional amount from the state together with your basic state pension. However, your GMP at state pension age may be higher than this notional pension and if this is the case you may not receive any additional
Note 3: The Government currently uses the Consumer Prices Index to determine increases in inflation.
Medas members only
How does my pension increase?
All pensions when in payment are reviewed each year in April and therefore may be entitled to receive an increase. Different rates of increases are applied to different elements of your pension.
Your pension will increase in line with RPI up to a maximum of 5% p.a.
Note 1: These increases do not apply to benefits in respect of additional voluntary contributions, transfers in or discretionary benefits.
Note 2: From state pension age the state checks whether your GMP in payment is at least as high as a notional amount of additional state pension. This notional pension increases fully in line with inflation. If the GMP is lower than this notional pension, you will be paid an additional amount from the state together with your basic state pension. However, your GMP at state pension age may be higher than this notional pension and if this is the case you may not receive any additional amount until many years after your state pension age – if ever.
Note 3: The Government currently uses the Consumer Prices Index to determine increases in inflation
You may be able to start receiving your pension as early as age 55 (with the minimum retirement age is increasing to 57 in 2028) and you must start receiving your pension no later than age 75. The Plan is set up for members to start receiving their pension from age 60. If you choose to receive your pension earlier, it may be reduced as it is being paid sooner than expected.
You can check the earliest age you can receive your pension unreduced by logging into My Pension. If you are still employed by the Company and building your pension in the Plan (an Active member) you should discuss your options with your HR representative as the choices available to you may not be exactly as described here.
The Plan is a registered scheme for HM Revenue & Customs (HMRC) purposes. As a registered scheme, it enjoys several tax advantages. Consequently, HMRC impose limits on the amount of pension savings you can make before incurring tax charges.
It is your responsibility to ensure you monitor and understand how your pension savings may be affected by the allowances imposed by HMRC.
The Annual Allowance (AA) sets the limit on the amount your pension can grow each tax year without incurring a tax charge. This includes your pension from the Plan and any other private pensions you may have.
The Annual Allowance for the 2023/2024 tax year is £60,000.
If the difference between the capital value of your pension and tax-free cash at the start of the year exceeds the value at the end of the tax year by more than the Annual Allowance, the excess would be subject to a tax charge.
For information on how to calculate this, visit the HMRC website.
Since April 2023, the Annual Allowance has been set at £60,000 and we expect it will continue at this level for most individuals. However, the Annual Allowance is tapered for individuals with a taxable income over £200,000. This has been in place since April 2020.
For every £2 over £200,000 of taxable income, the Annual Allowance reduces by £1, down to a minimum of £10,000.
The Lifetime Allowance (LTA) sets the total value of all the pension savings you can build up before having to pay extra tax. This figure is currently £1,073,100, but the charge for breaching the LTA has been removed from 6 April 2023, with the allowance abolished entirely from April 2024.
Although if your pension savings exceed the LTA, you’ll no longer be liable to pay the extra tax charge, Pension Commencement Lump Sums will continue to be limited to 25% of the current LTA.
For defined benefit pensions like the HP Plan, the ‘value’ of your pension would be calculated by multiplying your initial annual pension by 20, and then adding it to any pension commencement lump sum received. This would then be added to the value of any other pensions you may have in addition to your Plan benefits to determine whether the Lifetime Allowance has been reached.
In practice, it’s expected that only a small number of members of the Plan will reach the Lifetime Allowance. You should take independent financial advice if you believe that you may be affected by it.
It is your responsibility to check this information is up to date and correct. The definitive source for this is the gov.uk website.
Prior to April 2016 State Pension provision was made up of two elements:
Your Basic State Pension; and
An additional earning related pension known as the State Earnings-Related Pension Scheme (SERPS) and subsequently the State Second Pensions (S2P).
The HP Plan was Contracted out of SERPS. This means you did not build up any SERPS or S2P entitlement whilst an Active member of the Plan. Instead the Plan is required to pay you a minimum level of pension from age 65 (age 60 for women). This minimum pension is known as your Guaranteed Minimum Pension (GMP) and forms part of your Plan pension.
From 2016, contracting out ceased and the Government introduced a new State Pension.
From April 2016, the Government has introduced a new flat-rate pension. Further information on the new State Pension can be found at www.gov.uk/new-state-pension
Who can I ask about my State benefits?
For queries relating to your State benefits, you can contact The Department for Work and Pensions (DWP).
Future Pension Centre, The Pension Service 9, Mail Handling Site A Wolverhampton WV98 1L Telephone: 0845 3000 168 Website: www.nidirect.gov.uk
The Plan is a registered scheme for HM Revenue & Customs’ (HMRC) purposes. As a registered scheme, it enjoys several tax advantages. Consequently, HMRC impose limits on the amount of pension savings you can make each year and build up over your working life.
It is your responsibility to ensure you monitor and understand how your pension savings may be affected by the allowances imposed by the HMRC.
Payslips
Your monthly payslips show the amount of pension you have been paid and how much tax has been deducted.
To view your payslips, login to or register for the My Pension online account.
P60s
Your P60 shows the tax you have paid on your pension in the tax year (6th of April to the 5th April).
To view your P60, login to or register for the My Pension online account.