Understanding Your Benefit Statement

Once a year, the Kingfisher Pension Scheme (KPS) sends you your Annual Benefit Statement. This is your chance to get an update on how your retirement savings are doing. It tells you how much your retirement pot is worth and how much it might be worth when you retire.

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Understanding Your Benefit Statement leaflet

Understanding Your Benefit Statement Leaflet

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State Pension Changes - Understand the BasicsKPS-MP
The Kingfisher Pension Scheme – Money Purchase Section

The Kingfisher Pension Scheme – Final Salary Section

Linked KPS-FS and KPS-MP Pension
Benefits within both the Final Salary and Money Purchase sections of the Kingfisher Pension Scheme.

Retirement Account
This is the fund account where your contributions are paid into each month and then invested.

Total Withdrawal
This is where you take all of your retirement savings as a one off taxable cash sum. 25% of the cash sum will be tax free however the remainder will be liable for income tax.

Multiple Withdrawal (or Flexi-Drawdown)
A flexible income you can change. This option lets you take some or all of your tax-free cash, leaving the rest of your retirement savings invested to take an income from if you want to. You don’t need to take an income at all but if and when you do, you can take a regular flexible income, one-off withdrawals or both – but only until the money runs out.

A product you can buy with your retirement savings that will provide a lifelong regular income.

Retirement savings
The pot or pots of money saved for your retirement which you can access from 55 or over. This includes money paid in from you and your employer to defined contribution or money purchase plans.

State pension
The State Pension is a regular payment from the government you can get when you reach State Pension age. To get it you must have paid or been credited with National Insurance contributions. You’ll get your State Pension under the current scheme if you reach State Pension age before 6 April 2016. If you reach State Pension age after this date, you’ll get your State Pension under the new scheme.

Selected retirement age (SRA)
This is the age you expect to retire. Currently, the Scheme’s default selected retirement age is your anticipated State Pension age.

Tax-free cash
Money taken from your retirement savings as cash when you use your Retirement Account to buy an annuity or a drawdown. From the age of 55 you can usually take up to 25% of your retirement savings as tax-free cash.

UFPLS (uncrystallised funds pension lump sum)
This is a cash lump sum which is paid straight from your retirement savings without moving into drawdown or by buying an annuity. 25% of the money taken as ‘uncrystallised funds’ will normally be tax-free, and the rest will be subject to income tax.

Annual Allowance
An Annual Allowance for pension savings applies each year, which is based on a period of 12 months. In other words it is the amount of pension contributions available on pension savings for each tax year. The Annual Allowance is currently £40,000 (correct as at 2018/19 tax year). This is the maximum you or someone else, e.g. the Company, can contribute to all your pensions in one year, without incurring a tax charge. It also includes any benefits accrued in a final salary pension