Pension Increase Exchange (PIE)
Welcome to our Pension Increase Exchange (PIE) information site
Here you’ll find information to help you make an informed decision about your PIE option, as well as more information about your pension considerations. If you have any further questions, please go to the Contact page to contact our team.
What is a Pension Increase Exchange?
The pension that you earned prior to 5 April 2000 is guaranteed to increase in line with inflation subject to a maximum of 5% a year. The pension that you earned post 5 April 2000 may be increased at the discretion of the Trustee with the consent of the Company.
- The company are now offering you an option to receive a higher pension now by giving up these future pension increases.
- If you accept this option, your overall pension will increase to a higher flat-rate pension for life but you will no longer receive future increases on your pension.
- The benefit to the company is that pension liabilities are more predictable in the future as increases are not linked to inflation.
Why is your former employer making this option available?
It gives you more choice
Everyone has different personal circumstances and financial situations. These circumstances and your financial situation will affect your decisions. The Pension Increase Exchange provides you with a new choice about how you receive your future pension.
It helps reduce the Scheme’s risks
If members choose the once-off Pension Increase Exchange, the level of “inflation risk” in the Scheme will reduce. This will mean that there is a greater level of predictability around future pension payments, and this will reduce the risk to the Company of running the Scheme.
