The Offer
If you have received a letter from Aon with your personalised one‑time Wind‑Up Lump Sum (WULS) offer from the Trustee, you have the option to either:
- take your RSP Section benefits as a one-off cash sum, payable directly into your bank account; or
- wait to take your benefits when you retire
Watch our video that explains more
Why have I received this offer?
The Trustee is now planning to wind-up the RSP Section. As part of this, eligible members have the option to take their RSP Section pension pot as a one-off cash sum now, at today’s value, rather than waiting to take it at retirement.
To be eligible for this offer, the total value of your pension pot must be £18,000 or less at the point of offer. If you have received an offer letter it shows you how much you could get today if you accept the WULS offer, versus how much you will get if you wait to take your benefits when you retire.
Your letter from Aon explains what this means in more detail.
If you choose to accept the WULS offer and take your RSP Section benefits as a one-off cash sum, you will no longer hold benefits in, and will leave, the RSP Section.
If you don’t accept the WULS offer your benefits will remain in the RSP Section, and you will have the same options for taking your pension pot as you do now. We will keep you updated about our plans for the future of the RSP Section.
I was told I wasn’t likely to be eligible, but I’ve received an offer letter
When we wrote to you in April, we believed you wouldn’t be eligible to receive an offer. However, eligibility is based on your WULS value at the point the offer is made. If the value of your pension pot is £18,000 or less, then you will have received an offer letter giving you the option to take your RSP Section benefits as a one-off cash lump sum.
What is the benefit of taking my RSP Section benefits now?
If you are aged 54 or below…
Normally, you can’t access your pension benefits before the Normal Minimum Pension Age (age 55, rising to age 57 in 2028). However, if you were to accept the WULS offer, you will be able take your RSP Section benefits now as an immediate one-off cash lump sum. You can choose what to do you with your cash now, which may be preferable depending on your current financial situation.
Your WULS offer amount is likely to be less than the amount you’ll get when you retire. However, you will have to wait until at least the Normal Minimum Pension Age to take your pension pot if you choose not to accept your WULS offer. You also have the option at any time to transfer your pension pot into another pension arrangement if you wish to do so.
If you are aged 55 or over…
You can already access your pension benefits from the RSP Section, and the amount offered as a WULS payment will be the same as if you took your pension pot from the RSP Section.
If you don’t accept the offer, your benefits be transferred to Aviva to look after. Once this happens, members will hold an individual policy with Aviva, and they will be responsible for paying your pension benefits when you choose to take them.
What is the benefit of keeping my pension pot in the RSP Section?
You can wait to take your RSP Section pension pot until you are ready to retire – it is likely to be more than your WULS offer amount. You can then add it to your overall retirement savings and income. If you want to wait to take your pension pot, you don’t have to accept the offer.
