A&O Shearman Pension Scheme
Welcome to your guide to the Defined Contribution (DC) Section of the A&O Shearman Pension Scheme. You can find information about the Defined Benefit (DB) section of the A&O Shearman Pension Scheme at https://www.myallenoverypension.com/booklet/aohome.asp.
Important: You can also find further information about Fidelity, and other helpful information pages in the links at the top of this page. Note however that these are not specific to you or to the A&O Shearman Pension Scheme.
How can I take my benefits at retirement age?
The A&O Shearman Pension Scheme provides the following options:
- Use your retirement savings to purchase an annuity. You can do this by transferring the value of your Retirement Account to a third-party provider to purchase an annuity. You can take up to 25% of your retirement savings account as a tax-free lump sum and purchase an annuity with the remainder.
- Take all of your retirement savings account as cash; up to 25% of this could be tax free and the balance will be taxed at your marginal rate;
- Transfer your retirement savings account to another pension arrangement which may offer more income options, such as income drawdown.
You can select one or a combination of these options but you must use the whole of your DC retirement savings account in one go. If you want to take your benefits in stages (such as income drawdown) you will need to transfer to another pension arrangement.
Members who have benefits under both the Defined Benefits and Defined Contributions sections of the scheme can request to take their DB and DC benefits, or transfer out, at different times.
A useful place to start looking into your options is Moneyhelper.
You can take your benefits at your Normal Retirement Date which is your 65th birthday. However, you may request to take these benefits earlier or later.
If you are a DC member who joined the Scheme before 1 April 2010, you can take your pension benefits at age 62. If you continue as an employee of A&O Shearman after age 62 you may continue in membership of the DC Section on the same terms as applied before age 62.
You may request early payment of your benefits from age 55 (although this is due to rise to 57 from 6 April 2028). If you are still employed by the Firm, you will require the Firm’s approval and if granted, you must opt out of the A&O Shearman Pension Scheme and become a deferred member of the Scheme and complete an opt out form.
If you have left the Firm, or are no longer an active member of the Scheme, you will require the approval of the Trustee for early payment.
Your retirement savings account may only be taken before age 55 on the grounds of incapacity as set out in the Scheme’s rules.
You can take your pension benefits after your normal retirement age subject to agreement from the Firm and Trustees.
What benefits are currently payable in the event of my death?
It's important to nominate your beneficiaries on PlanViewer and keep this up to date. The Trustee will take account of your wishes in the event of your death but is not legally bound by them, and retains full discretion as to whom any death benefits are paid.
Under the current rules of the Scheme, if you die in service as an active member of the scheme, your beneficiaries receive a cash lump sum equal to 5 times your Salary at the date of your death, subject to a maximum benefit of £1,000,000.
Your Beneficiaries will also receive a cash lump sum equal to the current value of your employee pension contributions paid to the Scheme adjusted by any return on those funds. Your Spouse or Partner may also qualify to receive a pension for life equal to 25% of your Pensionable Salary at the date of your death.
What happens to my benefits if I leave the Scheme?
It's important to be aware of the effect leaving the Scheme may have on your Retirement Account.
You should think carefully before opting out of the Scheme as it offers you and your dependents valuable benefits and A&O Shearman also contributes into your pension benefits - this is money towards your pension from your Employer that you would otherwise not receive.
You can opt out of the Scheme at any time. This will be processed with effect from the first of the following month. You may still have to be re-enrolled into the Scheme at a later date.
When you leave the Firm you cannot continue making contributions to the Scheme.
If you leave the Scheme with less than 30 days' Pensionable Service, you will be refunded via payroll any contributions that may have been deducted from your salary, and will have no holding in the Scheme.
If you leave the Scheme with at least 30 days' Pensionable Service, your Retirement Account will be retained in the Scheme. Your pension savings will continue to be invested according to your instructions until you decide to take or move your benefits.
Yes. If you have a deferred benefit entitlement you can transfer your pension savings to either a personal pension arrangement or to another occupational pension scheme provided that it is a registered pension scheme or qualifying recognised overseas pension scheme.
Your statutory right to transfer out ceases 12 months prior to reaching your Normal Retirement Age, please contact Fidelity for further details.
Please note, however, that the Rules of some schemes may not permit them to accept a transfer of benefits. By transferring your Scheme benefits you would give up all entitlement to benefits under the Scheme. Please seek further information from Fidelity.
A refund of your pension savings at the date of your death may be paid as a lump sum. The exact amount of the lump sum may also be subject to Scheme limits.
The Trustee of the Scheme has issued guidelines which are available from the administrators, Fidelity.
What about my State Pension?
As a member of the Scheme you are contracted in to the State Pension Scheme. For more information regarding your state benefits, please visit ‘Check your forecast’ on the government website: https://www.gov.uk/check-state-pension.
Further information
Active members should update changes to their personal details (i.e. your marital status or change of address) via ‘My Self Service’. If you leave A&O Shearman and your details change, you should contact Fidelity directly to ensure that your member record is up to date.
Scheme benefits cannot be assigned or transferred to another person or used as security for a loan. The Scheme Rules can be amended at any time.