Final Salary

On retirement from the KPS-FS you may have the following options:

  • KPS-FS Pension with attaching spouse’s pension payable in the event of your death;
  • up to 25% of your KPS-FS benefits as a tax-free cash lump sum & reduced KPS-FS Pension with attaching spouse’s pension payable in the event of your death; or
  • if your total pension savings value is below £30,000, then you may be able to take a one-off taxable cash sum.

If you have KPS-FS AVCs or linked KPS-MP benefits, these will be used to provide the tax-free cash lump sum to enable you to take your full KPS-FS pension.

If you do not wish to take a tax-free cash sum or if there is any excess AVC fund over the maximum tax-free cash lump sum amount, you may purchase an annuity (retirement income) on the open market. To find out more about the open market option please click here. Alternatively you can find it under the ‘I am a member’ section of the website. Or why not watch our Annuities Explained module.

3 to 6 months before your Normal Retirement Age, Kingfisher Group Pensions will write to you confirming your options.

If you would like to take early or late retirement, you will need to contact Kingfisher Group Pensions directly and request a retirement quote.

Once you have completed and returned your Retirement Option Forms, Kingfisher Group Pensions will send you an acknowledgement and confirm when payment of your benefits will be made. Kingfisher Group Pensions will arrange for payment of your benefits in accordance with the option you have chosen.

The steps required to take your KPS-FS benefits are the same regardless whether you opt to take early, normal or late retirement.

If you are still employed by the Company, and are still contributing in the KPS-MP section then you will need to ensure you complete the Retirement Notification Form so your contributions are stopped in good time.

If after receiving your quote you decide you do not wish to proceed, please ensure you complete the relevant section.

However, once you have chosen how you would like your benefits, the choice you make are irreversible. It is therefore essential that you take the time and consider your options carefully.

Broadly speaking, your deferred KPS-FS pension will be reduced by 4% for each year before your Normal Retirement Date.

However, if you were a member of the KPS-FS at date of closure (30 June 2012) and decide to take payment of your deferred pension whilst still working for the Company between age 55-60, your pension will be reduced by 3% for each year before age 60. No reduction is applied when retiring from the KPS-FS on or after age 60 whilst still working for the Company.