Jaguar Pension Plan

How it works

The Jaguar Pension Plan is a Defined Benefit pension plan, which pays a retirement income based on a percentage of your pensionable salary every year for the rest of your life, in line with the Rules that govern the Plan. The amount you get depends on how long you have spent working for your employer and how much you were earning at the time you gave up work .

This means that your pension is not market dependant and you are normally guaranteed the accrual rate in line with the Rules.

Frequently Asked Questions

Change in Circumstances (7 Answers)

[-][+] Can I transfer my pension from my previous job into the Jaguar Pension Plan?

Transfers into the Jaguar Pension Plan are currently suspended until further notice.

[-][+] What happens if I get seriously ill and cannot work?

If you are absent from work because of illness and you can no longer work for the Company on grounds of ill health or disability, a benefit may be payable under the Company’s ill health scheme.

In the event of serious illness, the benefit will usually be calculated as a pension in the usual way, using service up to the age of 65  with no reductions. Evidence of ill health will be required.

If there is medical evidence that the Member only has a year or less to live, they may be allowed to give up their benefits in return for a lump sum.

[-][+] What happens if I go on maternity/paternity leave?

If you were to continue to participate in PSS during maternity/paternity leave, you would receive a reduced level of Statutory Maternity Pay (as SMP is based on average earnings and PSS reduces average earnings).  However, you are able to opt out of PSS 23 weeks before the expected due date so that your contractual salary can be increased to the pre sacrifice level in order to maximise SMP and avoid this reduction.  You will then contribute to your pension with your pension contribution being deducted net of basic rate tax and would then be grossed up by the Provider (please see Plan booklet for further details). Should you decide not to opt out of PSS, where there is insufficient income above SMP to sacrifice the contribution amount then your participation in PSS will automatically be suspended until such time as there is sufficient income.

[-][+] What happens if I leave the company?

On leaving service you and the Company stop paying into your plan and your entitlement to the additional death benefits and insured ill health benefits would also stop.

Your pension will automatically go into a deferred position. You will receive a deferred benefit statement approximately 8 weeks after your leave date, detailing the benefits you have built up in the Scheme. You may still be able to transfer this benefit to another registered pension plan.

[-][+] What happens if I go on sick leave?

Your contributions will be made from the Company Sick Pay you receive rather than your normal salary. Details about Company Sick Pay are available from HR.

If you have a long-term absence from work, and have exhausted entitlement to Company Sick Pay and SSP, and you have no pay to sacrifice the Company’s pension contributions will be nil during this period. You will be suspended from PSS during the period of long term absence as this will constitute a lifestyle event.

[-][+] What happens to my pension if I die before retirement? (Whilst still in employment)

Your Dependants may be entitled to the following benefits:

– A lump sum equal to 3.5 times the yearly rate of your Pensionable Pay at the date of death.

– If you die before age 65, any spouse will receive 50% of your retirement pension based on service until age 65, with the same rate of Pensionable Pay as at the date of death.

– If you die after age 65, any spouse will receive 50% of your retirement pension that you would have received if you had retired immediately before your death.

– Any children will receive 12.5% each, up to a maximum of 4.

[-][+] Who do I tell when I change address?

You must inform HR Direct on 01926 691 747 (external) or 047 (internal).  Alternatively you can change your personal details on myJLR.

Contributions (9 Answers)

[-][+] Can I contribute to other pension schemes at the same time?

As well as your occupational pension plan, you may also invest in other pension arrangements. Please seek independent financial advice for further information.

[-][+] Can I decrease how much I contribute?

You can only decrease your AVCs, not your standard contribution. To do so you need to complete the Additional Voluntary Contribution Request Form.

You should be aware that if you cease your AVCs completely, you will not be able to recommence paying AVCs again.

[-][+] Can I increase how much I contribute?

If you wish to contribute more you can do so through Additional Voluntary Contributions but only if you have already set them up before 06 April 2013, and you can increase these at any time.

You also have access to the JLR Defined Contribution Pension Fund, which can increase your pension savings. More information can be found within the JLR Defined Contribution Fund – Guide to Making Additional Payments, located on the Scheme Booklets page.  Please note: you can change your contribution at any time throughout the year. You are no longer required to wait until April or in the event of a lifestyle change.

You can arrange an increase of your AVCs by completing the Additional Voluntary Contribution Request Form. These payments are made to a fund of your choosing from a variety of investment accounts selected by the Trustees of the Plan. The Trustees currently use two external providers (Prudential and Scottish Equitable). AVCs are paid into the fund/s you have selected and will provide a fund value at retirement that will be converted to pension and added to the pension accumulated in the Plan.

Please be aware that the HMRC treat AVCs in the same way as pension contributions and once they have been paid it is not possible to cash in this investment prior to retirement.

[-][+] Can I make a one-off lump sum payment?

Only if you have already set up Additional Voluntary Contributions before 06 April 2013.

If you have done so, you can arrange a one off single contribution by completing the Additional Voluntary Contribution Request Form.

[-][+] How do I know which investment is best for my AVC?

There are four main types of investment:

– Money market investments: money on deposit (e.g. cash in a bank or building society) and short term loans to raise cash;

– Gilts and bonds: loans to companies or the government;

– Property: physical buildings, usually commercial properties;

– Shares: stakes in a company (also called equities).

Each one works in a different way and carries its own particular investment risks.

Please see the Jaguar Pension Plan AVC Guide, which describes the different asset classes in more detail.

If you are not comfortable with making investment decisions you should seek help from a financial advisor. Please visit to find an adviser in your local area.

[-][+] How do I make payments into the Jaguar Pension Plan?

The Jaguar Final Salary Pension Plan is based on a Pension Salary Sacrifice (PSS). This salary sacrifice arrangement means that you sacrifice part of your pay and the company uses that sacrifice to make equivalent payments into your pension fund.

This means you will only pay income tax and National Insurance on your reduced salary.

You can find out more information about PSS here.

You can choose not to participate in the PSS arrangement at any time by requesting an opt-out form from HR Customer Operations on 0121 347 5951 (external) or 8795 9955 (internal).

[-][+] How much can I contribute?

Your contribution is 7% of your pensionable pay if you are in the Lower Tier.

Upper Tier Members currently contribute 8% of pensionable pay


[-][+] How much does the company contribute?

The Company is responsible for the cost of the pension fund above the member contributions. So, with regular valuations, the Company pays in whatever is needed to top up the balance to cover the amount of guaranteed benefits. This can vary from time to time, depending on how well the investments are performing.

[-][+] What happens with my money?

Your money is invested by the Trustees, having taken professional advice.

Final Pension Queries (8 Answers)

[-][+] How do I get a quote of my current benefits and my projected pension?

The administrators will provide you with an annual benefit statement of your benefits accrued to date and your projected pension. For further information, please contact the administrators.

[-][+] How does the Jaguar Pension Plan compare to other pensions I can get?

If you require advice on the different pension options you should take independent financial advice – visit You will be able to get contact details for Independent Financial Advisers based in your area.

[-][+] How is my pension paid?

Your pension will be paid by the Pension Plan. Pensions are payable on the 15th of every month on retirement.

[-][+] How much pension will I get?

The accrual rate is 1/58 of your final pensionable pay for every complete year and month of pensionable service:

(1/58 x final pensionable pay) x service length

[-][+] What is my 'pensionable pay'?

Basic pay/salary (excluding payments for overtime, bonus and shift premiums)
Attendance allowance paid in respect of Service on or after 1 November 1998
The Member’s “Individual Performance Payment” for Grade D only (if any)
Any holiday bonus received by the Member on or after 1 November 2002.

[-][+] When can I take my pension?

The normal retirement age for the plan is 65. However you may be able to start taking the benefits at any time from the minimum retirement age of 55 (but reductions may apply).

[-][+] When I die will my spouse/dependant’s receive a pension?

If you die after you retire the following benefits may be paid:

A lump sum payment

A lump sum of at least £1500 will be paid.

If you die within 5 years of retiring, the lump sum may be more. The Trustee Board will pay the remaining pension payments, which would have been paid over the rest of the 5 year period, if this is greater than £1500. For example if a member dies 3 years into his retirement, there will be 2 years of pensions payments remaining. If his pension was £700 per month, the total amount of pension remaining would be 24 months x £700 =£16,800. As this sum is greater than £1500, this higher sum will be paid as a lump sum.

If you retired on an incapacity pension and die before you reach age 65, the lump sum may be calculated differently. It will be twice the yearly rate of your Pensionable Pay at your date of retirement, reduced by the lump sum payable as set out above. For these purposes Pensionable Pay will include individual performance payments (for staff Grade D employees) paid in the March before you retired.

The Trustee Board will decide who to pay the lump sum to, taking your Nomination Form into consideration.

A dependant’s pension

This is equal to one half of the pension you would have received on your date of death if there had been no reduction for a tax-free lump sum or early payment. It will increase each year in the same way as your normal retirement pension would have.

A children’s pension

If you have children, they may be eligible to receive a children’s pension. The amount paid for a children’s pension depends on the amount of children you have and whether a dependant’s pension is being paid. If a dependant’s pension is being paid the amount of the children’s pension will be as follows:

If you have 1, 2 or 3 children they will each receive 12.5% of the pension you would have received had you stayed in Pensionable Service until age 65.

If you have 4 or more children they will receive 50% of the pension you would have received had you stayed in Pensionable Service until age 65, split between them.

The Trustee Board has discretion to vary the proportionate share of pension that each child receives.

If there is no dependant’s pension being paid the children’s pension will be increased to an amount equal to the dependant’s pension. It will increase each year in the same way as your normal retirement pension would have.

If you die having retired before your Normal Pension Age, the dependant’s pension and children’s pension are calculated slightly differently. Please contact the Administrator if you require further details.

[-][+] Will my pension be taxed?

If you choose to take the optional lump sum on retirement, this will normally be granted tax free. However, whilst contributions are normally made tax free, the benefits paid out on retirement are subject to tax rules as earned income.

Further Information (4 Answers)

[-][+] Where can I get financial advice?

If you require independent financial advice you should visit You will be able to get contact details for Independent Financial Advisers based in your area.

[-][+] Who do I contact if I have any further queries?

Jaguar Pension Plan, JLT Benefit Solutions, St James House, 7 Charlotte Street, Manchester, M1 4DZ

Telephone Helpline:
0345 078 2052

0044 1298 890252




[-][+] Why do I need to complete the Insured Benefits Nomination Form?

Some of the benefits payable on the death of a member are paid at the discretion of the Trustee. To enable the correct decision to be made a completed Nomination form will help the Trustees to know how you would wish the benefits to be distributed on your death.

It is important that if your personal circumstances change that you complete an updated Nomination form.

[-][+] What is Pensions Liberation?

Pensions liberation can take a number of forms. However, it mostly follows the basic principle of a member transferring his/her accrued pension rights into a receiving scheme that is set up so as to allow access to those benefits in a way which is not authorised by the relevant tax rules (eg by paying benefits before the member has attained minimum pension age).

These unauthorised payments from the receiving scheme to the member could attract a number of punitive tax charges and the receiving scheme will often levy a number of charges of its own on the member for providing this service. The member is usually unaware of the tax charges and additional costs associated with taking his/her benefits from the receiving scheme and these will often substantially reduce the value of the benefits he/she receives in respect of his/her transfer value.

If you are considering any such arrangement, further information is available from the following parties:

Joining/leaving the Pension Plan (3 Answers)

[-][+] Can I join the Jaguar Pension Plan?

No. The Plan has been closed to new all members since 18th April 2010.

[-][+] Can I leave the Jaguar Pension Plan?

Yes, you can cease your membership of the Final Salary Plan at any time. You need to be aware that if you do so you will not be able to re-join the Plan.

You may join the Jaguar Land Rover Defined Contribution Fund at any point after that, but if you do not join immediately upon cancellation of your Final Salary Plan you will need to provide medical evidence before you will be covered for the Death in Service and Ill Health benefits.

You should consider taking independent financial advice prior to making this decision.

[-][+] Can I re-join at a later date if I leave the pension plan?

No. You will not be able to re-join the Plan.