FAQs

What is a tax-free cash lump sum?

At the time you take your retirement benefits from the DCL Section of the Dow UK Pension Plan you will have the option of reducing the amount of pension you receive in exchange for a tax-free cash lump sum. Please see page 7 of the Plan booklet for more information.

Can I transfer other benefits into the Plan?

You cannot transfer benefits into the plan from a previous employer or a personal pension plan.

Can I transfer benefits out of the Plan?

If you leave the Plan, you can transfer your benefits to another employer's pension plan or a private pension arrangement.

Can I transfer my deferred pension?

Yes. You may transfer the cash equivalent value of your deferred benefit (including AVCs) to another pension arrangement approved by the Inland Revenue at any time before your deferred benefits come into payment.

Please note that in accordance with the Pensions Act 1995, members are entitled to request one transfer value quotation every 12-month period. The Trustees reserve the right to make a reasonable charge for any further transfer value quotation calculated in that period. The Trustees strongly suggest that you seek the advice of an Independent Financial Advisor before making a decision to transfer your pension benefits.

You may request details of the cash equivalent transfer value at any time, subject to the above, without being committed to proceed with a transfer. The Pensions Act 1995 requires that a transfer value quotation must be provided within 3 months from date of request but normally, details will be provided within one month.

‘Rule of 85’ for pre-1 February 1989 joiners with part-time service

For the purposes of early retirement under the conditions of ‘Rule of 85’, members of the plan who have periods of part-time employment accrue Pensionable Service on a pro-rata basis during their part-time service. This is consistent with the calculation of pension benefits. For example, a member who worked on a part-time basis for two years, working 50% of the equivalent full-time hours, would accrue one year of Pensionable Service for the purposes of the ‘Rule of 85’.
Following the closure of the Plan to the future accrual of benefits on 31 December 2013 Combined Pension Forecasting is no longer provided.

Nomination Form

Does the lump sum death benefit contribute to estate size for inheritance tax purposes?

No, since the benefit is payable at the Trustee discretion, the benefit does not form part of your estate for IHT purposes.

If I change the persons on my nomination form will this affect the potential inheritance tax liability?

No, please see above FAQ.

What happens if the names on the Nomination Form do not match the names on a Will?

The lump sum death benefit is payable at the discretion of the Trustees. They use the Nomination Form to help them decide how the benefits should be paid. They also obtain other relevant information such as a will, or information from family members. They will take into account the dates that various documents are signed. Once all information is received, the Trustees make a decision. If a will is out of date, an explanation of the situation could be enclosed in the envelope together with the Nomination Form.

If your query is not shown here, please contact the DCL Section of the Dow UK Pension Plan administration team.

How do I update my Nomination Form?

If you would like to update your form you can contact the Plan Administrator using the details on the Contact us page.

Fact sheets

We’ve prepared simple fact sheets to answer questions on frequently asked questions.

Please note that these factsheets are currently in the process of being updated and these versions will be replaced in due course.

FAQs

Nomination Form

Fact sheets

Tax-free Cash Lump Sum

Divorce

The State Pension Scheme and Contracting Out

Integration with the State Scheme