Retirement options letter for a defined benefit scheme

Instructions for use – retirement options letter for a defined benefit (DB) scheme

  • The model document under ‘Related File(s)’ below is a sample retirement options letter for a DB scheme. Information will need to be tailored to the particular scheme/member and you may wish to amend the layout or add additional information that you feel is useful for the member.
  • Where figures are used, they are for illustrative purposes only.
  • Only those options available to the member should be listed in the options letter and form. For example, a letter to a member who does not have AVCs would not contain section 3. Likewise, if the scheme does not provide an alternative of an increasing pension, this option would not be included.
  • Some assumptions that may be made in calculating benefits/options are listed in section 2. If any other assumptions have been made you may wish to add to this list.
  • The model document contains footnotes which provide further information for the member.

While the Authority considers that this sample retirement options letter has been prepared in accordance with the relevant legislation at 30 September 2015, anyone preparing a retirement options letter should satisfy themselves that the information they give is compliant with the applicable legislative requirements.