Cheviot has been helping people save for their retirement since 1930. Over the years, we have learnt something about what people want from their pension provider.
Employers want to know that the administration is simple, that the arrangement is well governed and that members will get the information and returns that they need.
Members want pensions that are easy to understand, don’t require too many decisions on their behalf and that there is someone to talk to if they have any questions.
So the Cheviot products deliver against these requirements:
To read our latest report to members, please click here.
Please click here for more information about becoming a member representative on the Trustee Board.
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Pensions may not be the most exciting topic but they are really important. People are living longer – most of us will be living on a pension for at least 20 years. You may think there are more exciting ways to spend your cash, but saving for retirement is important too. You don’t want to spend 20 years in retirement worrying about how to pay the bills.
The Cheviot pension is a money purchase arrangement that allows you to save for your pension by collecting contributions from you and your employer and investing them over the long term. At retirement, you use the value of your Cheviot pension to provide an income for the rest of your life. Your employer will also make contributions to your Cheviot pension to help you save. Not joining is a bit like giving up a pay rise so think carefully before turning those contributions down as you may regret it later.
Cheviot is a not for profit organisation and is managed by a trustee board. The Trustees come from different firms and backgrounds and are there to look after your interests. They represent employers and members to make sure that your Cheviot pension is well run, your money is thoughtfully invested and investment performance is regularly monitored. You just need to decide how much to save.
Cheviot has an innovative approach to investment. We listen to our members and understand that you want investment options which are:
Most importantly, you want investment options that provide good stable returns over the long term at a reasonable cost.
Your Cheviot pension is designed to make saving for your retirement easy. When you join, we will provide a schedule of Key Information which includes the important details you need to know. You will get a new Key Information schedule each year with your benefit statement. All you need to do is to check regularly that the contributions you are paying are going to provide you with the pension you need when you retire. We can help you with that too, see the Pension Calculator on our website.
You will get your State pension benefits in addition to your Cheviot pension. You can check how much you will get from the state by going to the DWP website. You will need your NI number.
To read our latest report to members, please click here.
Your employer will tell you whether you are eligible to join and what contributions you and your employer will pay. You don’t have to join, but you should think about the benefits you will be giving up if you don’t.
Lots of different employers use the Cheviot pension for their staff.
Each employer sets their own contribution rates and you can find out how much you have to pay by asking your employer. If you are already a member, check your Key Information schedule which will show you how much your employer pays into your pension. The Government wants to encourage everyone to save for their pension so you won’t get charged tax on your contributions.
Example: if you earn £20,000 per year and you and your employer pay 5%:
|You will pay||£83.33 per month|
|You will receive tax relief of||£16.66 per month|
|Actual cost to you||£66.67 per month|
|Your employer will pay||£83.33 per month|
|Total Contribution:||£166.66 per month|
How much you need to save depends on your personal circumstances. For example, you may want to retire early or perhaps may be happy to carry on working and take your pension later. Or you may want to provide a pension for your spouse after you die or only a pension for yourself.
You can pay more contributions to build up a bigger pension or to allow you to retire earlier. You will get tax relief on those contributions up to a current maximum of £50,000 per year or 100% of your taxable pay if lower. This limit includes any contributions you may be making to other pension schemes.
Use the Pension Calculator on our website to see how much you need to save to give you the best chance of having the pension you need. It is best if you can include any savings you have already made towards your pension but don’t worry if you don’t have this to hand, you can still use the calculator for future contributions.
Your employer deducts your contributions from your pay each month. Usually, Cheviot collects these contributions and your employer’s contribution directly from your employer. Sometimes, your employer will send the contributions in by cheque.
Cheviot checks that the contributions are right – we look at your pay and what you and your employer should be paying. If we find a problem, we go back to your employer. Most queries are sorted out very quickly. We don’t always know about some changes though, for example, when your pay increases, so it is still very important that you check the information in your Key Information schedule each year.
Cheviot then invests the contributions in the investment option or options you have selected.
All the investments in each option are held on an investment platform which invests in underlying assets as instructed by the Trustee. The platform also deducts the charges and calculates the value of all the assets held in each option. The value is expressed as a unit price each day and changes in line with market movements.
Cheviot holds a record of your contributions, how they have been invested and their current value, based on the unit price for each option. This information is shown on your benefit statement.
We all know times are tough at the moment and if you need to stop making your contributions you can opt out. Whether you will be allowed to re-join will depend on your employer – it is best to talk to them first before opting out. They may be prepared to allow you to reduce your contributions (and they may reduce theirs too) for a period until the full contributions become affordable again. Remember, if you opt out and your employer will not let you join again in the future, you are giving up the benefit of their contributions to help you save for retirement. It is not a decision to take lightly.
Click here to view your options.
You can retire any time from age 55 to age 75 whether or not you have stopped work. You generally need to take all your benefits at retirement. Please check your Normal Retirement Date in your Key Information schedule.
Remember to ensure that the Target Retirement Date we hold for you is as accurate as possible as we start reducing the risk in your account five years before that date. If you haven’t provided a Target Retirement Date then we will use your Normal Retirement Date.
You can also retire early because of ill health at any age if your illness stops you continuing in your normal employment. You will need to provide evidence of your illness.
Your Cheviot pension allows you to build up a fund to buy a pension at retirement. The amount of pension will depend on your personal circumstances and market conditions when you retire.
Each year, Cheviot will send you estimates of your likely pension. Look online to see your most recent estimate or call us and we will send you another copy. You can also use the Pension Calculator on our website to see the impact of increasing your contributions or changing your investment options.
About six months before your Normal Retirement Date, Cheviot will write to you with an estimate of your benefits. The actual amount available will not be known until your account is disinvested just before you retire.
You can usually take some of your account as a cash lump sum which is currently tax free. You can then use the remainder of your account to buy a pension which suits your personal circumstances. There are lots of options at retirement. Cheviot offers an annuity service through Price Bailey LLP. Price Bailey will research the market for you and discuss which options suit your circumstances best. Alternatively, you can use your own independent financial adviser.
There is a limit on the value of the benefits you can take from all your pension arrangements. This is currently £1.5m. If the total value exceeds this, you will have to pay tax on the excess.
If you leave Cheviot within 30 days, you will receive a refund of the value of your contributions (less tax).
If you move to another employer who also uses Cheviot, then you can probably just carry on contributing to your Cheviot pension. If your new employer has different pension arrangements, you can leave your Cheviot pension invested and we will continue to look after it and invest it on your behalf until you want to retire.
You can transfer your Cheviot pension to another pension arrangement at any time before you retire. Your transfer value is the value of your account when it is disinvested. Cheviot will only disinvest when we have received all your completed paperwork. Please contact us for more information.
If you have benefits in the With Profits Section, please see the separate With Profits leaflet.
You can transfer in benefits from other pension arrangements. The transfer will be added to your other benefits and invested on your behalf until you decide to retire. There is no additional charge for transferring in to the scheme. Please click here for more information.
The value of your Cheviot pension when it is disinvested will be paid as a lump sum (subject to tax limits). Some employers provide additional life assurance benefits – check your Key Information schedule. As the lump sums are payable under a discretionary trust, they are not currently subject to inheritance tax and can be paid out quickly to your beneficiaries.
To help the Trustees understand what you want to happen to your Cheviot pension or any life assurance benefit if you die before your retire, you need to complete an Expression of Wishes form.
You can change your mind at any time by completing a new form.
We keep our charges under review. We may not be the cheapest provider because we are doing more than most.
Click here for the current annual management charges. This is subject to review.
It depends why you are absent.
If you are on paid maternity leave, you will need to pay contributions based on pay you are receiving. During unpaid maternity leave, you usually stop making contributions. Your employer will pay contributions based on your normal pay whilst you are on paid maternity leave but will usually stop making contributions when you are on unpaid leave.
If you are not entitled to statutory maternity pay, please ask us for more information.
If you are on paid paternity leave, you will usually pay contributions on the pay you receive and your employer will pay on the basis of your normal pay.
Similar rules apply for adoption and parental leave – please contact us for further details.
There are lots of ways you can access information about your Cheviot pension.
You will receive a Key Information schedule in your benefit statement each year which shows contributions paid to your Cheviot pension, the change in value over the previous year with an estimate of how much pension it will buy at retirement, and your transfer value.
You can log on to your online account at any time and check the value of your account and your transfer value and view previous benefit statements. You can also change your basic details, change your investment options and your contributions.
Investment performance is updated quarterly on the website with details of the underlying assets of each option shown on a monthly basis.
You can use the Pension Calculator to see whether you need to increase your contributions or change your investment choice.
Click here for more information about the Cheviot administration team.
The State Pension Scheme is currently made up of two components – the Basic State Pension and the State Second Pension. The Basic State Pension is paid in addition to any benefits from your Cheviot pension as long as you have paid enough National Insurance Contributions. You may also receive the State Second Pension unless you have contracted out via Cheviot or another pension provider. For more details of the benefits you are likely to receive from the State, please go to www.gov.uk - you will need your National Insurance number to hand.
Despite our best efforts, sometimes things go wrong. The Trustee has a formal process for resolving disputes and complaints called the Internal Dispute Resolution, full details are available here or by emailing: email@example.com.
The Pensions Ombudsman solely deals with pension complaints. It can help if you have a complaint or dispute about the administration (including transfers/conversion) and/or management of personal and occupational pensions.
The types of pension arrangements it looks at include:
Some examples of types of complaints it considers include:
There is no financial limit on the amount of money that The Pensions Ombudsman can make a party award you. Its determinations are legally binding on all the parties and are enforceable in court.
Contact with The Pensions Ombudsman about a complaint needs to be made within three years of when the event(s) you are complaining about happened – or, if later, within three years of when you first knew about it (or ought to have known about it). There is discretion for those time limits to be extended.
The Pensions Ombudsman can be contacted at:
You can also submit a complaint form online:
If you have general requests for information or guidance concerning your pension arrangements contact:
The Pensions Regulator is able to intervene in the running of schemes where trustees, employers or professional advisers have failed in their duties.
The Pensions Regulator can be contacted at:
The Pensions Regulator
Napier House, Trafalgar Place, Brighton BN1 4DW
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Fund values are updated approximately every two weeks.
You are able to amend your personal details, including name and address, update your Expression of Wishes form, change your investment options, Target Retirement Date and request a change of contributions.
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