Vodafone Pensions - Your DB pension

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.

Transfer out

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 MoneyHelper.

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, log in to your VGPS ePA online account or contact the Scheme Administrator.

If you were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme and you would like to request a transfer value, simply get in touch with the Scheme Administrator.

If you were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme, for information about how your pension is calculated, please contact the Scheme Administrator.

Your pension from VGPS is a Defined Benefit (DB) pension. This means that your pension is based on a proportion of your final pensionable earnings and how long you worked for Vodafone, for example:

1/60

Final pensionable earnings

Pensionable service

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.

Your retirement savings and the State Pension

Your Vodafone pension may not be the only savings you have for your retirement. You may have saved into a pension scheme with another employer and you may also be entitled to a State Pension. The amount of State Pension you will receive depends upon your National Insurance record. For more information visit the Government’s Your Pension website.

If you need to trace a pension from a previous workplace you can use the Government’s Pension Tracing Service.

How much do you need?

Do you know how much money you will need to fund the kind of retirement you want to have? It can be difficult to imagine what your life will be like when you retire. The Pensions and Lifetime Savings Association has developed a set of Retirement Living Standards to help you imagine the retirement you want and work out how much it will cost. Find out more in Your retirement lifestyle.

Additional Voluntary Contributions

If you were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme, the following information does not apply to you. Please see Your DB Pension for more relevant JOG&T information.

As a member of VGPS you may have previously chosen to pay Additional Voluntary Contributions (AVCs) to increase your retirement savings.

If you have paid AVCs, where these are held and your options at retirement may vary depending on when you made your AVC payments and which section of the Scheme you were a member of.

If you were a member of the Vodafone Section of VGPS (for employees of Vodafone who joined the Scheme between 1 November 1988 and 31 December 2005), you may have paid your AVCs to Equitable Life or Prudential or to both, depending on the options you selected at the time.

If you paid AVCs to Equitable Life, your savings were initially transferred to Utmost. If you were entitled to the guaranteed uplift, this was added to your account as part of the transfer. Subsequently your AVCs (plus any applied uplift) were transferred from Utmost to LifeSight. At retirement, you will be able to take your AVCs as cash (either as a single lump sum or in multiple withdrawals known as ‘drawdown’), or you can use them to buy additional VGPS pension. Find out more in the dedicated LifeSight section.

If you paid AVCs to Prudential, there were two sections you could pay into, unit-linked and with-profits, you could have paid into one or both of these.

The unit-linked funds transferred to LifeSight in August 2020 (with the exception of the Prudential UK Property Fund, which transferred in February 2021). At retirement, you will be able to take your AVCs as cash (either as a single lump sum or in multiple withdrawals known as ‘drawdown’), or you can use them to buy an additional pension (known as an annuity). Find out more in the dedicated LifeSight section.

The with-profits AVCs have remained with Prudential and VGPS. You can find details of your investments on your annual benefit statements from Prudential or by speaking to the Scheme Administrator.

At retirement, you will be able to take your with-profit Prudential AVCs as cash (either as a single lump sum or in multiple withdrawals), or you can use them to buy an additional pension (known as an annuity). Please refer to the update for members with Prudential AVCs for more information.

If you were a member of the CWW Section of VGPS (created as a result of the merger between the Cable & Wireless Worldwide Retirement Plan and VGPS on 5 June 2014), your AVCs are now held in LifeSight (having previously been transferred to the DC Plan). The transfer to LifeSight was completed in June 2020. Find out more in the dedicated LifeSight section.

If you paid AVCs to Equitable Life, your savings were initially transferred to Utmost. If you were entitled to the guaranteed uplift, this was added to your account as part of the transfer. Subsequently your AVCs (plus any applied uplift) were transferred from Utmost to LifeSight. If you were a CWW member entitled to a 3.5% annual increase guarantee as part of your AVC arrangements, this continues to be backed by VGPS. At retirement, you will be able to take your AVCs as cash (either as a single lump sum or in multiple withdrawals known as ‘drawdown’), or you can use them to buy additional VGPS pension.

Tax allowances and your retirement savings

You do not pay tax on the money you save into a pension up to certain amounts. Everyone has an Annual Allowance (AA) for tax free pension saving. There are different allowances for people earning over £200,000 a year (Tapered Annual Allowance) and for those who have already started to take their retirement savings (Money Purchase Annual Allowance - MPAA).

Up until 6 April 2023 there was also the Lifetime Allowance (LTA) to consider. The value of your pension benefits was assessed against the Lifetime Allowance, or Personal Lifetime Allowance, at certain points (including retirement), and if the value of your benefits exceeded the allowance, there was a tax charge on the excess. The LTA tax charge has not been enforced since 6 April 2023, and it has been removed completely from April 2024.

Annual Allowance (AA)

The AA is the maximum amount you can save into your pension each year and still attract tax relief. Your AA applies to the total amount you save including any contributions made for you by Vodafone to LifeSight and any pension savings you make outside LifeSight. There is no limit on the amount you can save into a pension plan, but there is a limit on the amount that receives tax relief each year. The AA for the 2024/25 tax year is £60,000. If the amount saved is more than £60,000 you will pay a tax charge on the amount over the AA. If you are affected by the AA, you may be able to carry forward any unused tax allowances from the previous three years. You can find a helpful AA calculator on the gov.uk website.
The Lump Sum Allowance (LSA)

The LSA is the total tax-free lump sum limit you can receive from all your pensions, unless you have a valid protection certificate that allows you to take a higher tax-free amount. From April 2024, the LSA limit is £268,275 (that is 25% of £1,073,100 – the old LTA). Any amount in excess of this limit will be taxed at your marginal rate.
The Lump Sum Death Benefit Allowance (LSDBA)

This is the total tax-free lump sum amount that can be paid to beneficiaries if someone dies before age 75. The LSDBA limit is £1,073,100. Any amount in excess of this limit as taxed at your marginal rate.

Tapered Annual Allowance (Tapered AA)

The reduced or ‘tapered’ AA is in place for those with taxable earnings over £200,000 a year – known as your threshold income. If your threshold income (including your salary, any bonuses, and income from other sources) is more than £200,000 a year, you need to calculate your tapered AA by working out your adjusted income. This is your total taxable earnings plus your total pension contributions in the tax year. From 6 April 2024, if your adjusted income is more than £260,000, your AA is reduced by £1 for every £2 above the £260,000, to a minimum of £10,000 a year. If you are affected by the tapered AA, you may be able to carry forward any unused tax allowances from the previous three years. If you are a Vodafone employee, you may also be able to take advantage of the capped contribution option, visit MyChoices for more details. You can also find more detailed information on tax and your pension on gov.uk
Money Purchase Annual Allowance (MPAA)

If you are aged 55 or over and have previously drawn, or are currently drawing, an income from any Defined Contribution (DC) savings your AA will be reduced. The option to take some of your retirement savings whilst continuing to save into a DC scheme was introduced as part of the flexible benefit options in April 2015. You may be subject to a restricted AA of £10,000 a year (From 6 April 2024) if you have taken money from your DC retirement savings. If this impacts you, anything you save above the £10,000 limit will be subject to a tax charge. Find out more on gov.uk.
The Overseas Transfer Allowance

The Overseas Transfer Allowance is the total value of pensions that you can transfer to a Qualifying Recognised Overseas Pension Scheme (QROPS). The limit is £1,073,100 and if you exceed this limit, the amount will be subject to a 25% tax charge. Find out more on gov.uk.

HMRC’s Annual Allowance and Tapered Annual Allowances

From April 6 2020 to April 6 2023

Threshold Income/ Adjusted Income	Annual Allowance	Tapered Annual Allowance
Below £200,000	£40,000	–
Over £240,000 (including pension contributions) and less than £312,000	–	In a range reducing from £40,000 to £4,000*
Over £312,000	–	£4,000*

*The £4,000 limit also applies if you are already in receipt of your defined contribution pension. This is known as the Money Purchase Annual Allowance, see above for more details.

After April 6 2023

Threshold Income/ Adjusted Income	Annual Allowance	Tapered Annual Allowance
Below £200,000	£60,000	–
Over £260,000 (including pension contributions) and less than £360,000	–	In a range reducing from £60,000 to £10,000**
Over £360,000	–	£10,000**

**The £10,000 limit also applies if you are already in receipt of your defined contribution pension. This is known as the Money Purchase Annual Allowance, see above for more details.

More detailed information on tax and your pension is available on gov.uk.

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.

Ill-health benefits

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 were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme, for information about how your pension is calculated, please contact the Scheme Administrator.

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 your Normal Retirement Age. 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.

Death benefits

If you were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme, please see Your DB Pension for information about your death benefits.

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 pension

Your spouse or other financial dependant may receive a pension of around half your anticipated pension for the rest of their life.
Children’s pension

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.

Review your Expression of Wish details

Download 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, WTW:

Email: vodafonepensions@wtwco.com

Phone: 01737 227 517

Write: Vodafone Pensions, WTW, Sunderland, SR43 4JU

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. If you were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme, these annual increases will depend on the Rules in place at the time of your membership.

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.

Future Changes to the Retail Prices Index

For some members of Vodafone Group Pension Scheme (VGPS) , pensions in payment, in excess of Guaranteed Minimum Pension (GMP)*, increase in line with the Retail Prices Index (RPI). In some cases, revaluation increases that apply before retirement are also calculated in reference to the RPI. This is set out in the Scheme Rules (different minimum and maximum increase limits may apply depending on what section of the Scheme you’re in and when you joined) .

You may have heard that the UK Government has announced plans to make changes to the RPI. On 11 March 2020, the UK Statistics Authority (UKSA) and HM Treasury launched a consultation which looked at the option of reforming the RPI formula to align it with the inflation calculation for the Consumer Price Index including an allowance for housing (CPIH).

On 25 November 2020, the Government announced that the outcome of this consultation was that RPI would be calculated in a manner aligned with the calculation of CPIH from 2030.

What does this mean for me?

Depending on which section of the Scheme you're in and when you joined, the Scheme Rules may require increases to your benefits (before and/or after retirement) to be calculated in reference to RPI (subject to certain minimum and maximum levels).

The Trustee of the Scheme has a legal duty to ensure that benefits are paid in line with the Scheme Rules. This means that, where the Scheme Rules relating to your benefits refer to RPI-linked increases, any changes to the way in which RPI is calculated will automatically flow through to the increases you receive.

The Bank of England has suggested that increases in CPIH would likely be around 1% per annum lower than the current RPI. Pension benefits that are increased in line with RPI are therefore expected to increase at a potentially lower rate from 2030. If increases to your benefits are linked to RPI (this will depend on what section of the Scheme you’re in and when you joined), the increases to your pension from 2030 onwards may be lower than they would have been if the formula for calculating RPI had not been updated.

If you would like more information about how this change may impact you, please contact us.

Impact on the Scheme’s funding level

The planned changes to RPI are not expected to impact the Scheme's funding level. This is because, whilst the change to RPI may reduce the value of the Scheme’s liabilities, there is expected to be a similar impact on the value of the Scheme assets, which are invested broadly to match movements in the liabilities.

*About GMP

If you were previously a member of the J O Grant & Taylor (London) Limited Staff Pension Scheme, you do not have a GMP. GMP is the part of your pension that reflects the extra benefit you would have received as part of your State Pension had the Scheme not been contracted out of the State Second Pension. The underlying principle for pension schemes that contracted out is that they must provide members with a minimum level of pension at ‘GMP age’ (age 60 for women and 65 for men) that corresponds to the pension members would have earned under the State Pension Scheme if the schemes had not been contracted out.

Your DB pension