What you can do
Update your personal details
If you move house, get married or divorced, or have children it’s important that you let us know.
Updating your details is straightforward and will help us to make sure that:
- You receive important messages about your retirement savings
- Your pension payments are processed quickly and made on time
- When you die any money owed goes to the people you want to receive it.
To make a change, please contact us.Contact us
You can move your benefits from Vodafone Group Pension Scheme (VGPS) to another registered pension scheme. Defined Benefit (DB) retirement benefits can be very valuable. Moving your benefits is a significant decision which must be considered carefully.
If your benefits are worth more than £30,000 you are required, by law, to take independent financial advice.
You can find an Independent Financial Adviser at unbiased.co.uk.
People with DB pension benefits are targeted by scammers who may encourage you to transfer your funds out of the Scheme so that they can take your money. Find out more about how to spot a scam and where to go for further information and help.
If you wish to transfer your benefits out of VGPS to another registered pension scheme, simply fill in a transfer out form.Transfer out form
Please note this is an illustration only, your actual pension calculation may differ. Your final pensionable earnings will be the higher of either:
- The annual average of your past three years’ earnings including the average of any pensionable commission and/or bonus payments paid in the past three Scheme years (the Scheme year runs from January to December); or
- The annual average of any consecutive three years’ earnings in the past 10 years.
The proportion used to calculate your pension is called an accrual rate. For more information about how your pension is calculated please contact your Scheme Administrator.
Tax allowances and your retirement savings
You do not pay tax on the money you save into a pension up to certain amounts. Once your savings reach these amounts there are tax charges to pay. There is an annual amount, known as the Annual Allowance (AA) and a lifetime amount called the Lifetime Allowance (LTA). There is a different allowance for people earning over £200,000 a year (Tapered Annual Allowance).
Annual Allowance (AA)
The AA is the maximum amount your pension benefits can increase each year and still attract tax relief. Your AA applies to the total increase in the value of your benefits, and any pension savings you make elsewhere. There is no limit on the amount you can save in a pension plan, but there is a limit on the amount that receives tax relief each year. The Annual Allowance for the 2020/21 tax year is £40,000. If the increase in the value of your benefits is more than the AA you will pay a tax charge on the amount over the AA.
Tapered Annual Allowance (Tapered AA)
From 6 April 2020, a reduced or ‘tapered’ AA has been introduced for those with a threshold income over £200,000. To find out more about the Tapered AA visit gov.uk
Lifetime Allowance (LTA)
The LTA is the maximum amount of pension and/or lump sum that you can take from all your pension arrangements and still benefit from tax relief. There is no limit on the amount of benefits that your pension arrangement can pay you. However, if your Scheme gives you benefits of more than your LTA, you will pay an extra tax charge on the amount above your LTA. The LTA for the 2020/21 tax year is £1.073m.
Other tax allowances
If you also have savings in a Defined Contribution scheme, such as LifeSight, and have started to take some or all of your money, whilst continuing to save into a pension arrangement, you may also be subject to the Money Purchase Annual Allowance (MPAA). Find out more on gov.uk.
More detailed information on tax and your pension is available on gov.uk.
If you become ill and are no longer able to work
You may be able to take ill-health retirement. To be eligible you must be unable to do any paid work. Eligibility for ill-health retirement is at the Trustee’s discretion.
If you retire on ill-health grounds your pension will be calculated based on your final pensionable salary and your pensionable service. The Trustee has the discretion to extend your pensionable service forward as if you had worked for Vodafone until age 65. Ill-health retirement is payable at any age.
If you retire due to ill-health and subsequently recover and become able to work again your ill-health pension may be reduced or suspended.
If you die whilst still working for Vodafone
Cash lump sum
A cash lump sum of three times your pensionable earnings (if you were a capped member it will be three times your capped pensionable earnings) will be payable to your spouse or dependants.
Spouse or dependant pensionYour spouse or other financial dependant may receive a pension of around half your anticipated pension for the rest of their life.
A children’s pension may be payable if, when you die, your children are under age 18, or are under age 21 and in full-time education, or are otherwise financially dependent on you (up to a maximum of three children, subject to the Trustee’s discretion).
If you die after you have retired
Cash lump sum
If you die within five years of retiring, a lump sum will be paid equal to the unpaid balance of five years’ pension payments (excluding inflation increases).
Spouse or dependant pension
Your spouse or other financial dependant may receive a pension worth around half of your anticipated pension (ignoring any lump sum you have already taken).
Looking after your loved ones
If you’ve recently married, or had children, you can update the information the Trustee holds about your beneficiaries. This is so that they know who you wish to receive any money owed when you die.
The Trustee has the final say on who gets a lump sum when you die. However, it is guided by your wishes. To let the Trustee know who you’d like to receive your lump sum death benefit you need to update your Expression of Wish. You can do this online, or by returning an Expression of Wish form.
Letting us know someone has died
If a member of the Scheme has recently died, you need to contact the Scheme Administrator, Willis Towers Watson:
Phone: 01737 227 517
Write: Vodafone Pensions, Willis Towers Watson, PO Box 545 Redhill, Surrey RH1 1YX
Deferred pension increases
If you paid into the VGPS whilst you were employed by Vodafone you will have a deferred pension.
This means your pension benefits stay in the Scheme until you reach Normal Retirement Age. How much you get will depend upon your final pensionable salary when you stopped working for us and how long you worked for Vodafone.
Your deferred pension will increase each year between the date you left and the date you retire. These annual increases will be in line with the relevant price index.
Once you are ready to retire you have a choice to make about how you take your benefits – find out more about your retirement options.