Frequently Asked Questions
The Future of the RSP Section
What is a buy-in?
A buy-in is when a pension scheme purchases an insurance policy to improve the security of members’ benefits. The Trustee remains responsible for looking after the running of the scheme and paying members’ benefits. A buy-in can happen because a scheme is in a good financial position.
The RSP Section has completed a buy-in and are now moving towards buy-out and wind-up.
What is a buy-out?
Once a scheme has secured a buy-in, they can then consider their next steps. The Trustee has decided to wind-up the RSP Section and will transfer members’ benefits to Aviva through a buy-out. When a buy-out takes place, members will be issued with an individual policy with Aviva and Aviva will be responsible for paying pension benefits when they are due.
Why has the Trustee decided to do this?
The RSP Section was in a strong financial position which meant it was able to buy an insurance policy to secure members’ benefits for the future.
In the long term, insurance companies like Aviva are generally considered to be a secure option for members’ benefits, as they can spread the risk more widely than individual schemes can.
Are my pension benefits safe?
Yes, this is good news for you and your RSP Section benefits. We have increased the security of your benefits in the RSP Section, and there is no change to what you will receive when taking your pension pot.
Do I need to do anything?
No, you do not need to do anything as a result of the buy-in. The Trustee will keep you informed of the important milestones along the way.
When will the buy-out take place?
The Trustee is working with Aviva with the aim of completing the buy-out by early 2027. We will write to members to let them know when the RSP Section moves to buy-out and explain what it means for members.
Will I still be able to take my benefits in the same way?
Yes, you will still have the same options for taking your benefits from the RSP Section as you do now.
When can I take my RSP Section benefits?
The normal retirement age in the RSP Section is age 65. However, you can currently take your benefits at any time from age 55, however this will rise to age 57 in 2028.
Can I still transfer out?
Yes, you have the same option to transfer out of the RSP Section as you do now.
Who is Aviva?
Aviva has been selected by the Trustee to secure members’ benefits for the future. Aviva are an experienced and specialist insurance provider who offer protection against risks such as investment performance, changes of interest rates and inflation.
