Transferring from Level 1 to Level 2
The SchemeThe BOC Pension Scheme. offers two levels of membership. The level you choose determines:
- your contribution rate (see How much will Level 2 cost?); and
- the amount of benefits you build up.
Level 1 members will receive a pension at
Normal Retirement AgeYour 65th birthday, or any other age notified to you by your employer. based on an accrual rate of 1/100 of
Final Pensionable EarningsIf you left the Scheme before 1 April 2011
Broadly, the highest of:
- The average of your Pensionable Earnings in your final three years' pensionable service;
- The average of your highest three consecutive tax years' annual Pensionable Earnings in your final thirteen years' pensionable service; and
- An average of your Pensionable Earnings over your entire pensionable service, revalued in line with the increase in the Retail Prices Index, capped at 2.5% a year.
If you were an Active Member of the Scheme at 1 April 2011
Broadly, the highest of:
- The average of your Pensionable Earnings in your final three years' Post-1 April 2011 Pensionable Service;
- The average of your highest three consecutive tax years' annual Pensionable Earnings in your final thirteen years' Post-1 April 2011 Pensionable Service; and
- An average of your Pensionable Earnings over your entire Post-1 April 2011 Pensionable Service, revalued in line with the increase in the Retail Prices Index.
Final Pensionable Earnings are based on your Pensionable Earnings, increases to which are subject to an annual 2.5% cap from 1 April 2011, averaged over five-year rolling periods.
The same definition of Final Pensionable Earnings is used in relation to your Pre-1 April 2011 Pensionable Service except that the average of your Pensionable Earnings over your Pre-1 April 2011 Pensionable Service will be revalued in line with the full increase in the Retail Prices Index (and will not be capped at 2.5% a year). for each year of
pensionable service they have in the Scheme. The calculation is the same for Level 2 members except an accrual rate of 1/60 is used.
The accrual rate makes a big difference to the pension received. Using an accrual rate of 1/60 rather than 1/100 means the pension will be about 67% higher for future pensionable service (assuming Final Pensionable Earnings and pensionable service are the same).
Example
An example of the pension payable to a Level 1 and Level 2 member with the same Final Pensionable Earnings (£20,000) and Post-1 April 2011 Pensionable ServiceThe time you have been an Active Member of the Scheme in years and complete months from 1 April 2011 onwards, used when calculating your Post-1 April 2011 benefits in the Scheme. For any period of part-time employment, your Post-1 April 2011 Pensionable Service will be adjusted proportionately. (15 years) is shown below.
Level 1 member
1/100 (accrual rate) x £20,000 (Final Pensionable Earnings)
x 15 years (Post-1 April 2011 Pensionable Service) = £3,000 annual pension
Level 2 member
1/60 (accrual rate) x £20,000 (Final Pensionable Earnings)
x 15 years (Post-1 April 2011 Pensionable Service) = £5,000 annual pension
Use the Pension calculator to see the difference switching from Level 1 to Level 2 could make to the pension you receive at retirement.
And it’s not just your retirement pension that you need to think about. The Scheme also pays benefits to your dependants in the event of your death – which will be lower if you choose Level 1.
You can change your membership level at any time. If you would like to transfer to Level 2, you can download a 
Change from Membership Level 1 to Level 2 Form or contact BOC Pension ServicesYou can contact us by writing to:
BOC Pension Services
The Priestley Centre
10 Priestley Road
The Surrey Research Park
Guildford
Surrey
GU2 7XY
On the Helpline:
0800 096 3214
(BOCTEL 750 4745)
Or by email: pensions.uk@boc.com for a copy.
Important note
You should note that if you switch to Level 2 membership, the rate at which you (and any Recognised DependantYour spouse or registered civil partner (if normally resident with you) at your date of death. If there is no such person, an adult who is financially interdependent with you for basic living needs and who has normally been resident with you for at least two years immediately prior to your date of death. An adult qualifying for a Child's Allowance would not be eligible for a Recognised Dependant's pension as well. The Trustee also has discretion to provide a pension to other dependants if you do not have a Recognised Dependant.) built up pension will change for the future only. Your pension built up prior to the date of change will remain at Level 1.
Need help working out how well off you'll be in retirement? See the Planning and education section for more information.
Download the forms and documents relating to BOC Pension Scheme.