This makes it a ‘hybrid’ pension scheme. Its technical definition is a ‘cash balance’ pension scheme.
You know the contributions paid in - this is the defined contribution part. As we guarantee your contributions will not go down - this is the defined benefit bit.
We have 5 guides to help explain how your CAPF DC pension works. here are links to all 5, or scroll down the page to find out the highlights.
- My membership - find out the highlights and what happens when you join
- My bonuses and investment - discover how your pension is invested and how we add bonuses
- My retirement - understand what you can do with your pension pot
- My pension if i leave - know your options when you leave
- My pension if i die - see what will pass on to your loved ones
Your employer pays at least 4% of your pensionable salary every month. Your employer may ask you to contribute as well. You build up a pot which you use at retirement.
The minimum that must be paid each month is 8% of your pensionable salary. You can pay extra on top of any contribution your employer asks you to pay.
While you are an active member your employer pays extra to provide you with life cover. Find out more about this in the ‘My pension if I die’ section below.
You can't transfer other pensions into PB 2014.
Can I pay more?
You can boost your PB 2014 account by paying Additional Voluntary Contributions (AVCs). We treat your AVCs in exactly the same way as your usual contributions.
Monthly through your salary
If you are thinking of paying AVCs, first decide how much you would like to pay. Your AVCs are taken from your salary before tax. If you are a 20% taxpayer and you pay an extra 2% of your salary a month, only 1.6% comes out of your pay.
You can start, stop, increase or decrease your AVCs whenever you like. To start paying, or change your AVCs fill out an AVC form.
One-off lump sum payment
You can pay one-off lump sums. To do this, fill out an AVC form and send this to us. The form has all the details you need to pay a lump sum.
Anything you pay into your pension is tax-free up to a limit. As you will have paid tax on your lump sums you can claim any tax relief on your self-assessment tax return.
What happens to my contributions?
We add contributions to your PB 2014 account. Your account builds up over time depending on:
- how much you and your employer pay, and,
- any bonuses we add before you retire.
Every April we aim to add a bonus to your account. Bonuses depend on our investment performance. Once added, your bonus is guaranteed.
All the contributions paid into PB 2014 are invested in our Common Investment Fund, and invested in line with our ethical investment policy.
Plan for your tomorrow
We all have different aims for retirement. But, are you on course for the retirement you want?
Use our planning for retirement page to find out if you're on track. The earlier you do it, the easier it is.
When you are ready to take your pension, let us know.
When you are ready you can transfer your pension to another pension provider who can offer more flexible ways of taking your pension. You could take:
- an adjustable income, called drawdown
- cash lump sums in stages
- your whole pension as a lump sum in one go
If you aren't sure which is the best option for your needs and circumstances - we have partnered with LV= Retirement Advise Service who can help you. They'll help you pick the best option and put this into action for you.
If you take your account before 65 we may reduce it, but only if markets fall significantly at the time you take it.
What this video to find out how your retirement options work.
Helping you find financial advice
With something as important as your finances, you don't want to worry that you've got things wrong. This is where a financial adviser comes in.
A financial adviser will find out what financial products you already have, the support your employer provides, confirm what you are entitled to from the State, and tell you where any gaps in your finances lie. They can also advise you on complex things like tax, and trusts.
My pension if I leave
If leave within 2 years of joining, we'll offer you two options:
1. the option to transfer your whole pension, including what your employer has paid to another pension provider, or,
2. a refund of any contributions you have paid, less tax.
If you move jobs and they have their own pension scheme, or you have your own private pension you can move your pension to this, but you might need to take financial advice before you do. Get in touch with us if you would like to do this.
If you leave after 2 years we'll keep your pension with us until you decide to take it, transfer it to another provider or die.
We'll keep in touch with you and send annual updates to let you know how your pension is progressing.
My pension if I die
If you die before you take your PB 2014 account, we'll pay this to your beneficiaries. This will include all the contributions you and your employer has paid, plus any bonuses.
Tell us the person, people or organisations you would like to leave any lump sum to - head to PensionsOnline to add your nomination.
If your circumstances change, remember to update your nomination. To keep this tax-free we have discretion over who receives any lump sum but we'll be guided by your wishes.
Pensions technical area
if you're looking for help with a technical question, and you can't find the answer on this page, check out our technical area. You might find the answer there. If not, get in touch with us and we can help.
How to make a complaint
We make every effort to provide you with an efficient and effective service. However, if you are unhappy with the service you receive, please contact us first and we will do our best to resolve your issue.
If you have a complaint or dispute concerning your workplace or personal pension arrangements, you can also contact the Pensions Ombudsman. If you have general requests for information or guidance head to MoneyHelper.
The Pensions Ombudsman
Tel: 0800 917 4487
We are here to help. You can contact us by:
Phone: 020 7898 1802 (9am - 5pm, Monday to Friday)
Email: [email protected]