Summary of benefits
The Company is committed to providing good quality pension benefits for all its employees. The Company makes a significant contribution towards your pension, so if you are not already a member of the RHM Pension Scheme (the Scheme), you could be missing out on valuable benefits.
This Scheme is a defined benefits scheme. This means that you know in advance that you will get a pension at retirement based on what you are earning close to the time you retire.
A defined benefits scheme offers greater security than the schemes known as "defined contribution" or "money purchase" pension plans which some other companies offer, where your benefits will depend on how much you have managed to save by the time you want to retire. In this case, inflation, interest rates and the performance of investment markets will all affect how much you are able to save and what benefits you can buy.
Here is a summary of the benefits offered by the RHM Pension Scheme:
| Tax relief on your contributions | Full tax relief is given on your contributions at the highest rate you pay tax,
making the cost of membership less than you may think. Because of the tax reliefs, you may not use your benefits as security for a loan or dispose of them in any other way. |
| Company contributions | The Company makes a significant contribution towards the cost of providing your benefits, which means you are missing out on valuable benefits if you are not a member of the Scheme. |
| The option to retire early | You may be able to start receiving your pension early from age 55 (age 50 if your pension starts before 6 April 2010). If you joined the Scheme on or after 6 April 2006, you will need the consent of the Company to do this. If you joined the Scheme before 6 April 2006, you may still be entitled to start taking your pension from age 50 (even after 6 April 2010) if you meet certain conditions set out by law – please contact RHM Pensions for further details. |
| Cash lump sum | At retirement, you will normally be able to exchange up to 25% of the value of your pension for a cash lump sum provided you are under age 75. This cash sum is called a Pension Commencement Lump Sum and is currently tax free. |
| Death benefits | The Scheme provides financial security for your dependants in the event of your death. |
| Protection against the unexpected | If you are unable to continue working because you become seriously ill or incapacitated, you may be able to receive an immediate pension. |
| Regular communication from the Company | As a member of the Scheme, you will receive regular communication from RHM Pensions:
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