The earliest age you are currently allowed to the claim your benefits from the Scheme is 55 (age 57 from 6 April 2028).

The only way you are allowed to take your benefits before this age is if you apply for early retirement due to incapacity and the Trustees approve your application.

 

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.

As a member of the KPS-MP you have the following options:

• Take all of your Retirement benefits as a one off cash sum, with 25% being tax free and the remainder taxed at your marginal rate of income tax.
• Use your Retirement Account to buy a pension paid by an insurance company.
• Take 25% of your Retirement Account as a tax-free lump sum and use the balance of your Retirement Account to buy a pension.

Please note you can also take withdrawals from your Retirement Account as and when you require - with no limits.  Generally 25% of it will be tax-free.  This is called "flexi-drawdown". However, the KPS-MP is currently not able to offer this option and should you wish to take advantage of this, you will need to transfer your Retirement Account to a pension provider who can offer you the "flexi-drawdown" option.

** By taking all your pension savings as one off taxable lump sum you may be subject to a reduced Money Purchase Annual Allowance

Please note that unless you have some form of pension protection, the maximum tax-free lump sum you can now take is £268,275.