Defined Contribution (DC) Pension Pots

Before making any decisions regarding your Lafarge UK Pension we strongly advise that you, first visit the Pension Wise website and then seek Independent Financial Advice from an IFA.

DC, (Money Purchase, PensionBuilderplus, AVC’s Pots).

A defined contribution (DC) - a pension pot based on how much is paid in.

If you have a DC Pension pot within the Plan, (Money Purchase,PensionBuilderplus, AVC’s Pots) the earliest you can start extracting value from your pot is age 55. 

As a result of the changes to pension regulations from April 2015 you will have additional retirement options. You would still be able to take a tax-free lump sum but it would be calculated as 25% of your pension fund. The remainder could be used to either:

Buy an annuity with an insurance company to provide a guaranteed income for life.  You could choose whether this has an attaching dependant’s pension or just provides a pension payable to you. You would also be able to change the level of increases which your pension receives, or

From April 2015, you can take the balance of your fund in whatever pattern you like. If you prefer not to buy a pension, you can take the whole amount as one lump sum or  withdraw (or Drawdown)  the amount as several lump sums from your pension savings to meet your income requirements, which would be taxed at your marginal tax rate. You can choose how much to withdraw each year or you can withdraw a proportion and use the remainder to purchase an annuity now or in the future. You can also choose how the money is invested until it is withdrawn or used to purchase an annuity.

Please note - that the Trustee of the Lafarge UK Pension Plan together with Lafarge have decided that they only wish to offer a one off lump sum.  Taking a one off lump sum may not be the most tax efficient method of taking your benefit and you may wish to spread the payment over multiple tax years.  As the Lafarge UK Pension Plan will not be offering the option to take the fund as a series of lump sums you will need to transfer your fund out to another Pension Arrangement to gain this benefit.

Leave your pension pot untouched - you don’t have to start taking money from your pension pot when you reach your ‘selected retirement age’ (the pension age you agreed with the Plan). You can leave the money invested while you continue to work.

More information can be found on the Governments Pension Wise website Click>Pension Wise

If you have any further questions regarding your Lafarge UK Pension, please don't hesitate to contact the helpline 01306 872100 or write to:

Lafarge UK Pensions, Park Lodge, London Road, Dorking, Surrey, RH4 1TH.

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