We want you to make an informed choice when it comes to accepting your offer. On this page, you’ll find answers to some Frequently Asked Questions and where to go for further help and guidance to help make your decision.
Aon is working on behalf of the Trustee to issue Wind-Up Lump Sum offers to eligible members, support members throughout this exercise and to process the offer for those who accept it. Aon is a leading pensions industry expert and an accredited member of the Pensions Administration Standards Association. You can read about Aon at www.aon.com.
Aon are well known to both the Trustee and Morrisons and have been involved with the running of Morrisons wider pension arrangements for over 20 years.
Aon aims to pay you in the month after you accept your offer and within 8 weeks. The amount you actually receive will be lower than the figure in your letter as they will make a deduction for income tax before making the payment to you.
The WULS amount shown on your letter is the full value of your RSP Section Cash Balance benefits as at the date of the letter, and reflects the fact that the benefit is being paid early. A reduction has been applied which is equal to the investment return that we expect to achieve in the period between the date of this letter and age 65.
The amount of your RSP benefits you could receive at age 65 is the amount of your benefit increased each year from the date you left the RSP Section to your Normal Retirement Age of 65 in line with expected inflation. This is measured by reference to annual increases in the UK Consumer Price Index capped at 2.5%.
Under current tax rules, you will be able to take 25% of your WULS payment tax-free. The other 75% will be taxable at your marginal rate. At the point of payment, Aon will make a deduction for tax of 20% which is the basic rate of income tax.
However, everyone’s tax situation is different – the amount of tax you need to pay if you accept the offer will depend on your other income for the 2025/2026 tax year.
You can work out how much tax you should pay by visiting the HMRC website.
At the end of the tax year, HM Revenue & Customs will check if you have paid the correct amount of tax, and if not, they will contact you. However, if you think you have paid too much tax, you can ask them for a tax refund immediately after you receive the cash sum – you don’t have to wait until the end of the tax year. To do this, you can call the HM Revenue & Customs Helpline on 0300 200 3300 and ask for Form P54. Alternatively, you can find this form on the HMRC website.
If you don’t confirm your choice by the deadline, we will assume you don’t want to accept the offer. Your benefits will be transferred to Aviva to look after and an individual policy will held in your name. The Trustee will write to you when this happens.
No. This is a one-time offer and will not be made again.
We recommend taking financial advice if you’re unsure about your options, the potential of tax implications, or what might be best for your circumstances. You can find a list of financial advisers on MoneyHelper. If you already have your own financial adviser, it is important to make sure they are regulated by the Financial Conduct Authority (FCA) and you should always check the Financial Services Register.
For tax guidance and information, you can contact HM Revenue & Customs for information about tax on 0300 200 3300, or you can visit the HMRC website.
Alternatively, if you are age 60 or over and your total income is less than £20,000 a year, you can contact the charity Tax Help For Older People on 01308 488 066 or by visiting www.taxvol.org.uk.
We hope that you can find what you need online, but if you need further help or guidance, please do get in touch. Our contact information is on our Contact Us page.
