Land Rover Pension Scheme

How it works

The Land Rover Pension Scheme is a Defined  Benefit pension scheme, 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 Scheme. The amount you get depends on how long you have spent working for your employer and how much you were earning.

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

Click here to download the Scheme’s Member Guide.

Frequently Asked Questions

Change in Circumstances (7 Answers)

[-][+] Can I transfer my pension from my previous job into the Land Rover Pension Scheme?

Transfers into the Land Rover Pension Scheme are currently suspended until further notice.

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

If the Company and Trustee Board agree that your illness is sufficiently serious to prevent you from following the duties of your current employment or suitable alternative employment you may be able to retire on an Ill Health Early Retirement Pension.

Your pension would be worked out in the same way as a pension taken at age 65 but will use your Final Pensionable Earnings and Pensionable Service at the date you leave the Scheme. However if you retire under age 55 on the grounds of ill health, your pension will be reduced to take into account the period between the date you retire and your 55th birthday.

The Trustee Board will require evidence of your ill health. If your health improves, the Trustee Board may reduce your pension or stop paying it.

If the Company and the Trustee Board agree that you are unlikely to recover your earning ability before the age at which you would be expected to retire if you were not ill, you may retire with a Serious Ill Health Early Retirement Pension. This pension will be worked out in the same way as if you retired at age 65. Your Final Pensionable Earnings will be based on your Pensionable Earnings at the date you stop work. Your Pensionable Service will be the period of service you would have completed had you remained in service until age 65.

[-][+] 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 Scheme 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 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.

When you go on long-term absence, after a maximum of two years you will become a Suspended Active Member. If you do not return to work before this time, you will leave the scheme and become a deferred Member.

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

A tax free cash lump sum of at least three times your Life Assurance Earnings will normally be paid. The Trustee Board will decide who this will be paid to and will take your Expression of Wish Form into consideration.

A pension may also be paid to a Dependant that is equal to 50% of the pension you would have received had you stayed in the Scheme until age 65. It is calculated using your Life Assurance Earnings at the date of your death.

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

–       If you have 1 child, they will receive 25% of the pension you would have received had you stayed in the Scheme until age 65.

–       If you have 2 children, they will receive 40% of the pension you would have received had you stayed in the Scheme until age 65. This is split equally between the two children.

–       If you have 3 or more children, they will receive 50% of the pension you would have received had you stayed in the Scheme until age 65. This is split equally between the children.

If there is no dependant’s pension being paid, the children’s pension is normally calculated as if percentages are doubled.

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

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

Contributions (10 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 – visit http://www.unbiased.co.uk/. You will be able to get contact details for Independent Financial Advisers based in your area.

[-][+] 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.

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

If you are a member of the Lower Tier you may wish to consider joining the Upper Tier of the Scheme.

If you are a member of the Upper Tier and you wish to contribute more than 8% you may be able to do so through Additional Voluntary Contributions (AVCs). These payments are made to a fund of your choosing from a variety of investment accounts selected by the Trustee of the Scheme. The Trustees currently use two external providers (Prudential and Legal & General). 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 Scheme.

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 this investment in prior to retirement.

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 pagePlease 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.

To increase your AVCs you need to complete the Additional Voluntary Contribution Request Form.

[-][+] 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 AVCs?

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 Land Rover Pension Scheme 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 http://www.unbiased.co.uk/

[-][+] How do I make payments into the Land Rover Pension Scheme?

The Land Rover 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?

Lower Tier contribution 5.75% of your pensionable pay

Upper Tier contribution 7% of your 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 in funds they consider appropriate, having taken professional advice and until you take out your benefits.

[-][+] When can I change pension tier?

You can only change tier once a year at tax year end (5th April). The form will need to be returned to the Pension Department by 6th March at the latest to allow salaries/payroll to action the request.

Final Pension Queries (10 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 more information, please contact the administrators.

[-][+] How does the Land Rover Pension Scheme compare to other pensions I can get?

If you require advice on the different pension options you should take independent financial advice – visit http://www.unbiased.co.uk/. 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 on the 1st of each month by the Pension Scheme.

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

The Land Rover Pension Scheme was only set up in 2001. If you were employed by the Company before then, you may have been a member of the Rover Group Pension Scheme. The Pension that you earned as a member of the Rover Group Pension Scheme is worked out slightly differently. Below therefore, we show you how your pension is worked out for the different periods of service you have completed. Your approximate total pension is worked out by adding your pension for each of these different periods together.

1. Service in Land Rover Pension Scheme from 1 January 2001 onwards

For any service you have completed since 1 January 2001, you will have been a member of the Land Rover Pension Scheme. Your pension for this period is worked out in the following way:

If you are a member of the lower tier:

1/70 x Final Pensionable Earnings x Pensionable Service from the 1st January 2001

If you are a member of the upper tier:

1/60 x Final Pensionable Earnings x Pensionable Service from the 1st January 2001

If you change tiers, your pension will be worked out by adding together pension you have earned in each tier.

2. Service in Rover Group Pension Scheme between 6 April 1996 and 31 December 2000

For any service you completed between 6 April 1996 and 31 December 2000, you will have been a member of the Rover Group Pension Scheme. Your Pension for this period is worked out in the following way:

If you were a member of the lower tier:

1/70 x Final Pensionable Earnings x Pensionable Service between 6 April 1996 and 31 December 2000

If you were a member of the upper tier:

1/60 x Final Pensionable Earnings x Pensionable Service between 6 April 1996 and 31 December 2000

If you changed tiers at any point during this period, your pension will be worked out by adding together pension you have earned in each tier.

3. Service in Rover Group Pension Scheme between 6 April 1991 and 5 April 1996

For any service you completed between 6 April 1991 and 5 April 1996, you will have been a member of the Rover Group Pension Scheme. Your pension for this period is worked out in the following way:

If you were a member of the lower tier:

1/64 x Final Pensionable Earnings x Pensionable Service between 6 April 1991 and 5 April 1996

If you were a member of the upper tier:

1/55 x Final Pensionable Earnings x Pensionable Service between 6 April 1991 and 5 April 1996

If you changed tiers at any point during this period, your pension will be worked out by adding together pension you have earned in each tier.

4. Service in the Rover Group Pension Scheme from 1975/76 to 1991

For any Service you completed between 1975/76 and 1991, you will have either been in the Hourly Paid or Staff Rover Group Pension Scheme. Your pension for this period of service will be worked out in the following way:

If you were a member of the Hourly Paid Scheme:

1/70 x Final Pensionable Earnings x Pensionable Service in the Rover Group Hourly Paid Employees Pension Scheme

If you were a member of the Staff Scheme:

1/60 x Final Pensionable Salary x Pensionable Service in the Rover Group Staff Pension Scheme.

Please see the section Words with Special Meanings on page 3 of the Scheme Booklet to help you work out your Final Pensionable Salary for the Staff Scheme.

5. Service before 1975/1976

If you were in service before 1975/76 and in a pension scheme, you will also have pre-scheme benefits. These are benefits that were accrued prior to 1975/76 when the Rover Group Pension Scheme started.

[-][+] What is my final pensionable salary?

Whichever is the greater of either:

(a) the annual average of your Pensionable Salary in the 36 months before your 65th Birthday or leaving Pensionable Service; or

(b) the annual average of your best three consecutive tax years’ Pensionable Salary in the 10 tax years before your 65th birthday or leaving Pensionable Service; or

(c) The average of your Pensionable Salary in each tax year from April 1991. The Pensionable Salary in each tax year will be increased by the percentage increase in the appropriate index between that in April in each tax year and that issued immediately prior to the date of your 65th birthday or leaving Pensionable Service.

The appropriate index is currently the retail prices index.

[-][+] What is my 'Pensionable Salary'?

It is broadly all of your earnings except for any bonus, but including any childcare vouchers and/or salary sacrifice arrangement as directed by the Company and excluding such other payments notified to you as non-pensionable.

[-][+] What is my 'Pensionable Service'?

The number of complete years and months you have been a member of the Land Rover Pension Scheme. Any service you completed in the Rover Group Pension Scheme will be taken into account.

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

The minimum age that you can retire and draw on your pension has increased from aged 50 to 55. If, however, you were a member of the Scheme prior to 6th April 2006 the rules of the Scheme may allow you to retire from the age of 50 with actuarial reductions. If you retire on terms that require the agreement of the company (company consent or company request) then the minimum retirement age will apply and you will not be able to retire before the age of 55.

[-][+] When I die will my spouse/dependants receive a pension?

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

A lump sum payment

A tax free lump sum of at least £1,500 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 £1,500. For example if a member dies 3 years into his retirement, there will be 2 years of pension 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 £1,500 this higher sum will be paid as a lump sum.

The Trustee Board will decide who to pay the lump sum to, taking your Expression of Wish form into consideration.

An additional lump sum payment

If you die after retirement but before your 65th birthday you may qualify for an extra lump sum on top of the lump sum described above.

You will only qualify for this extra sum if:

– You were a member of the Rover Group Pension Scheme before 1 October 1991 and retired early with Company consent or at Company request from active status including on grounds of ill health or serious ill health.

– You joined the Scheme or the Rover Group Pension Scheme on or after 1 October 1991 and retired early on the grounds of ill health or serious ill health from active status.

If you qualify, the amount of the extra lump sum will be at least twice the amount of your Life Assurance Earnings at retirement.

This extra lump sum can only be paid to your spouse or your estate if you retire on grounds other than ill health or serious ill health.

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 lump sum or early payment.

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 how many children you have and whether a dependant’s pension is being paid. If there is a dependant’s pension being paid the amount of children’s pension will be as follows:

– If you have 1 child, they will receive 50% of the dependant’s pension.

– If you have 2 children, they will receive 80% of the dependant’s pension. This is split equally between the two children.

– If you have 3 or more children, they will receive 100% of the dependant’s pension. This is split equally between the children.

If there is no dependant’s pension being paid, the children’s pensions are normally calculated as if the percentages are doubled.

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

[-][+] 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 http://www.unbiased.co.uk/. 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?

Address
Land Rover Pension Administration Team, JLT Actuaries and Consultants (JACL), St James House, 7 Charlotte Street, Manchester, M1 4DZ

Telephone
Helpline 0345 300 2967

E-mail:
 landrover@jltgroup.com

[-][+] Why do I need to complete the Expression of Wish 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 Expression of Wish form will help the Trustee Directors 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 Expression of Wish 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 Scheme (3 Answers)

[-][+] Can I join the Land Rover Pension Scheme?

No. On 18th April 2010 the Plan was closed to all new members.

[-][+] Can I leave the Land Rover Pension Scheme?

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 Land Rover Pension Scheme?

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