- It's a good way of saving for a better future.
- It's tax efficient, the major advantage that pension schemes in the UK have over other types of investment is that members' contributions (including Additional Voluntary Contributions AVCs) are not subject to income tax and act like an additional personal allowance or tax free pay. Pension scheme contributions are deducted from your standard stipend before the calculation and deduction of income tax.
- The earlier you start contributing, the better pension you get.
- It's a defined benefit, so you know what you are likely to get at retirement. This helps you plan for your retirement.
- You are also covered for life assurance and ill health benefits are included as part of the package.
The Methodist Ministers Pension Scheme provides a defined benefit, so you know what you are likely to get at retirement. This helps you plan for your retirement.
On Retirement
- A pension based on Final Stipend x 1/80 (1/70 for service before 1 September 2010) x years of Pensionable Service.
- The option to exchange part of the pension for a tax free lump sum.
- An enhanced pension should you have to retire early due to ill-health.
- Annual pension increases.
You are also covered for life assurance and ill health benefits are included as part of the package.
On Death after Retirement
- A spouse's/civil partner's pension equal to half your own pension (before you exchange any part of it for a cash lump sum).
- Dependent children's pensions equal to 25% of the spouse's pension for each child under age 18, subject to a maximum of four children.
- A lump sum payable if you die within five years of starting to receive your pension.
On Death before Retirement
- Spouse's/civil partner's pension equal to 50% of your prospective pension based on potential service to retirement.
- Dependent children's pension equal to 25% of the spouse's pension for each child under age 18, subject to a maximum of four children.
- A lump sum equal to 3 x Stipend.