I’m an IFA

This section of the website is for Independent Financial Advisers (IFAs) to find relevant information about BOC Pension Scheme (the Scheme). If you are a member of one of these schemes, please return to the Scheme selector.

The information provided is designed to support IFAs in their work with members of the Scheme. Whilst every care has been taken in preparing this information, if there is found to be any discrepancy between the information provided and the Trust Deed and Rules, the latter will take precedence. You can download a copy of the current Trust Deed and Rules from the website at www.bocpensions.co.uk or request one from BOC Pension Services.

What is the Scheme?

• The Scheme is a defined benefit scheme and was established on 1 April 1974. It is open to future accrual but closed to new entrants on 30 June 2003.
• It is a registered scheme with HM Revenue & Customs (HMRC) under Chapter 2 of Part 4 of the Finance Act 2004 (Tax reference 00243305RZ)
• The Sponsoring Employer is The BOC Group Limited, a company registered in England and Wales under company number 22096.
• The Trustees are the BOC Pension Scheme Trustees Limited, a company registered in England and Wales under company number 3303706.
• The Scheme is an eligible scheme as defined in section 126 of the Pensions Act 2004 and is therefore eligible for entry to the Pension Protection Fund.
• Contributory members of the Scheme were in contracted-out employment under section 9 (2) of Pensions Act 1993 up to 5 April 2016 for the purpose of the State Second Pension provision, under Certificate numbers E3800264Y and S0224094Y.

All benefits are quoted subject to the Rules of the Scheme. Further information about the Scheme can be found in the rest of this website. Enquiries should be addressed to:

BOC Pension Services
Forge
43 Church Street West
Woking
Surrey
GU21 6HT

A brief history of changes

2003 – The Scheme closed to new entrants on 1 July 2003

2011 – Gist employees who were members of the Scheme as at 31 March 2011 were invited to join the newly created Gist Limited Pension Scheme (GLPS). These employees became deferred members of the Scheme and began an active membership in GLPS.

2016 – New membership levels were created as a result of contracting out.

2019 – GLPS was closed to future accrual from 1 July 2019 and all members became deferred GLPS members.

2020 – GLPS was merged back into the Scheme on 1 October 2020. All GLPS deferred records were merged into the Scheme meaning members with pre 1 April 2011 service now hold 2 deferred records in the Scheme.

Retirement

The Scheme’s Normal Retirement Age is 65. Benefits can be taken from age 55 (age 57 from 6 April 2028) and a reduction may be applied to allow for the longer period that the pension is expected to be paid.

Members can also continue to contribute to the Scheme past your Normal Retirement Age. This would mean that they would receive a larger pension when they do choose to retire.

Further information on early and late retirement can be found in the Scheme guide.

Please see the early and late retirement factors below.

Guaranteed Minimum Pension

A Guaranteed Minimum Pension (GMP) is included within a member pension for any pensionable service between 6 April 1978 and 5 April 1997.

The GMP is broadly equivalent to the pension the member would have earned from the State Earnings Related Pension Scheme (SERPS) for this period had they not been contracted out of SERPS through membership of the Scheme. The pension from the Scheme is calculated to be at least equal to the GMP.

Pension Commencement Lump Sum (PCLS)

Tax free lump sum at retirement is provided by commutation of pension. It is permitted to ‘fund’ the PCLS with DC AVCs.

Tranches are commuted proportionately

• Pension built up to 31 March 2011
• Pension built up between 1 April 2011 and 31 March 2016
• Pension built up after 1 April 2016

Factors

Commutation

Late retirement

Early Retirement Reduction factors

The Trustee sets these factors on advice from the Scheme Actuary and they may change from time to time.

There are no scheme-specific protections.

Ill health pension

For information on ill health arrangements refer to the Scheme guide.

Redundancy

A member may qualify for an unreduced pension from age 55 in the case of redundancy. The pension can be postponed up to age 65 (age 70 if leaving date is post 31 March 2011). Benefits are increased to reflect the postponed payment (note: increases are not applied to any dependant’s pension).

Choices

• Members may commute part of their own benefit for an increased dependant pension.
• Bridging to state pension is allowed, subject to calculation by the Scheme Actuary.

Increases to Pensions in Payment

If the member left the Scheme before 1 April 1997 – the pension above the GMP will be increased each April in line with the Retail Price Index (RPI) up to a maximum of 6% a year compound.

Age/gender	Date GMP built up	Any increases paid by	Increases in line with
Before age 60 for a woman/65 for a man	Before 6 April 1988	The Scheme	Statutory requirements
	From 6 April 1988	The Scheme	RPI up to 6% a year compound
From age 60 for a woman/65 for a man	Before 6 April 1988	N/A	Does not increase
	From 6 April 1988	The Scheme	RPI up to 6% a year compound

If you left the Scheme between 1 April 1997 and 31 March 2011

Your total Scheme pension will be increased in line with RPI, up to 6% a year compound. Any GMP may reveive a further statutory increase.

If you left the Scheme after 31 March 2011

Your pension increases as follows:

Pension built up	Increases in line with
To 31 March 2011	RPI up to 6% a year compound. Any GMP may receive a further statutory increase.
From 1 April 2011	RPI up to 2.5% a year. This cap is averaged over rolling five-year periods.

Frequency/date of payment

Pensions are paid each month in advance on the 6th (or next working day).

Death Benefits

Dependants

A Recognised Dependant would normally include the spouse or civil partner, as long as he or she is normally living with the member when they die. It could also be another adult who is financially interdependent with the member for basic living needs, and who has normally been living with them for at least two years leading up to their death.

When a member dies, a pension will be paid to their Recognised Dependant. In most cases, the pension will be broadly one half of their pension, based on the amount they would have received had they not taken a tax-free cash sum at retirement and ignoring any reduction for early retirement.

The Recognised Dependant’s pension will be based on Final Earnings (the Pensionable Earnings in the 12 months before leaving or taking benefits from the Scheme).

If the Recognised Dependant is more than 10 years younger than the member, the Trustee may reduce the amount of pension payable to the dependant.

If the member has AVC benefits and chooses to provide an additional Recognised Dependant’s pension with their AVC Account, this will be one half of their AVC pension at the date of death.

Death in service

If the member dies while an active member of the Scheme, the following will be paid to their dependant(s):

1. A cash lump sum

This includes:

• A lump sum of four times final earnings; and
• A refund of contributions (including those made through Salary Exchange), plus interest

2. A pension

The Recognised Dependant will get a pension for life, equal to half the pension the member would have received if they had remained an active member until Normal Retirement Age (NRA) based on their final earnings.

This may be reduced if your Recognised Dependant is more than ten years younger than the member.

3. A Child’s Allowance

Each qualifying child would get a Child's Allowance of one quarter of the Recognised Dependant's pension, up to a maximum of four children.

If the member is not survived by a Recognised Dependant but are by at least one qualifying child who the Trustee considers has been left without the necessary support of another adult, the first Child's Allowance will be increased to the full amount of the Recognised Dependant's pension.

The total amount of the Child's Allowance is then allocated between their qualifying children by the Trustee.

4. Pension guarantee

If the member and their dependants die before a total of five times your pension has been paid (in relation to their Pre-1 April 2011 Pensionable Service at the date of death), the beneficiaries will receive a lump sum equal to this amount (minus any payments already made to the member and their dependants but excluding any Child's Allowance).

Death in deferment

If the member dies while a deferred member of the Scheme, the following will be paid to their dependant(s):

1. A pension

The Recognised Dependant will receive a pension for life, equal to half of the deferred pension (which is based on Final Earnings rather than Final Pensionable Earnings). This is increased between the date the member left the Scheme and the date of death, to help it keep pace with inflation. This may be reduced if the Recognised Dependant is more than ten years younger than the member.

2. A Child’s Allowance

Each qualifying child would get a Child's Allowance of one quarter of the Recognised Dependant's pension, up to a maximum of four children.

If the member is not survived by a Recognised Dependant but are by at least one qualifying child who the Trustee considers has been left without the necessary support of another adult, the first Child's Allowance will be increased to the full amount of the Recognised Dependant's pension.

The total amount of the Child's Allowance is then allocated between their qualifying children by the Trustee.

3. Pension guarantee

If the member and their dependants die before a total of five times your pension has been paid (in relation to their Pre-1 April 2011 Pensionable Service at the date of death), the beneficiaries will receive a lump sum equal to this amount (minus any payments already made to the member and their dependants but excluding any Child's Allowance).

Death in retirement

If the member dies in retirement, the following will be paid to their Recognised Dependant(s):

1. A pension

A pension for life equal to half of their pension but based on Final Earnings rather than Final Pensionable Earnings (before any reduction for early retirement or taking a tax-free cash lump sum).

PLUS

Any extra pension that the member chose to provide for their dependant (in exchange for part of their pension at retirement) when they retired.

PLUS

Any extra pension from any Additional Voluntary Contribution (AVC) fund that the member chose to provide for their dependant when they retired.

If the Recognised Dependant is more than ten years younger than the member, the Trustee may reduce the amount of pension payable to them.

2. A Child’s Allowance

A Child's Allowance is payable. It is calculated in the same way as if the member had died as an active member, but uses the Recognised Dependant's pension payable on death in retirement. The Trustee will allocate the Child's Allowance between the Qualifying Children.

3. Pension guarantee

If the member and their dependants (if any) die before a total of five times their initial annual pension has been paid, their beneficiaries will receive a lump sum equal to this amount (less any payments already made to the member and their dependant, but excluding any Child’s Allowance).

Increases

Refer to the pension increase section for any applicable increases for pensions in payment after death.

Any income paid after death is not discounted.

Beneficiaries

For definition of each beneficiary please refer to the Rules of the Scheme.

Transfers

Who is eligible to transfer their pension from the Scheme?

Members of the Scheme can request a Cash Equivalent Transfer Value (CETV) from BOC Pension Services. The CETV represents the value of the benefits that the member would give up in the Scheme if they decided to transfer out.

The CETV is guaranteed for three months, but will change on the day after the expiry of the guarantee period.

What is the guarantee period?

Transfers are guaranteed for 3 months from the Statement Date. However, there is no guarantee, nor is there a statutory right for the following quotations:

• A quotation for the purposes of a Sharing Order
• A member with an active status
• A quotation made within 12 months of the members retirement

Should the member wish to take the transfer value where it is not guaranteed, the transfer value will be recalculated on receipt of the member’s confirmation that they wish to proceed.

How many CETV quotations per year can a member request?

Members only have a legal right to receive one transfer value in a 12 month period. As such, the member may not make another application for a transfer value within 12 months of the date on which they applied for this transfer value.

Are partial transfers permitted?

Partial transfers are available for members who had GLPS benefits that were merged into BOCPS.

There are no tranches with special arrangements due to gender equalisation changes.

Permitted franking is not applied.

GMP related matters

• Increases for GMP and non-GMP benefits - please refer to the Pension section
• Redistribution of benefits – if a member takes benefits before GMP age, the excess is adjusted with difference.
• Fixed rate revaluation is used if a member takes benefits before GMP age.
• GMP equalisation – the Scheme equalised pre and post 1988 GMPs for active members of the Scheme on 6/4/1997.
• Post 1988 GMPs were equalised for members who left before 6/4/1997.
• Top-up transfer payments will only be relevant for pre 1997 leavers and is currently in review. Members will be informed with the outcome.

How do you process transfer out requests?

Once a member requests a transfer we will send a transfer pack to them. This contains forms for the member to complete and return to us so we can start the transfer process.

In line with our legal requirements, we start by checking that a member’s transfer application meets one of the following conditions:

1. The "First Condition" is that the pension arrangement to which the member is transferring is one of the following types:

   1. A public service pension scheme.
   2. An authorised master trust.
   3. An authorised collective defined contribution scheme (cdc).
   If we are satisfied that the scheme to which the member is transferring meets the First Condition, the transfer can proceed.

2. For all pension arrangements that do not meet the First Condition, we will need further information to establish whether the "Second Condition" is met. In particular:

   1. If the arrangement is the member’s employer's occupational pension scheme, we will need the member to send us certain documents to provide evidence of an "employment link".
   2. If the arrangement is a Qualifying Recognised Overseas Pension Scheme (QROPS), we will need the member to send us certain documents to provide evidence that they are resident in the same country as the QROPS is established in, unless if it is also their employer's occupational pension scheme, in which case we may ask the member instead for evidence of an employment link.

Please note that if the member does not provide the required evidence, or we are not satisfied that the evidence provided demonstrates the required employment or residency link, we may not be able to make the transfer or the member may be required to attend a guidance session with MoneyHelper before the transfer can proceed.

For all transfers where the First Condition is not met, we may ask the member for further information and evidence in order to decide whether there are any "red flags" or "amber flags" associated with the transfer. If an amber flag is present, we will require the member to attend a guidance session with MoneyHelper before the transfer can proceed. If a red flag is present, we will not be able to make the transfer. If we do not identify any red or amber flags (and, if relevant, the member has provided the required evidence that there is an employment link or residency link), the Second Condition will be met and the transfer can proceed.

If the member is not transferring to a scheme which meets the First Condition, in order to enable us to determine whether the Second Condition is met, and to help us reduce the risk of the member being the victim of a pension scam, we will need the member to complete a Member Questionnaire. The transfer application cannot be reviewed until we receive the completed Member Questionnaire. Therefore, all the questions will need to be answered by the member and further information provided where indicated.

What information do you collect during the transfer process?

The information we collect will help to determine which conditions apply to the transfer application and will include the following:

• Name and address of the member requesting a transfer
• Information about the receiving scheme including:
  • name
  • address
  • HM Revenue and Customs (HMRC) registration number
  • payment details
  • type of scheme
  • identity of the scheme administrator
• Information about any financial adviser and other individuals involved in the transfer including:
  • the firm’s name and address
  • Financial Conduct Authority (FCA) registration number
  • FCA permissions
  • role in relation to the transfer

What further conditions need to be met / information is required for a transfer with a value of more than £30,000?

Any member requesting a transfer from a defined benefit (DB) scheme to a defined contribution (DC) scheme with a value of more than £30,000 must have had advice from an adviser regulated by the FCA. The adviser must have permission for the activity of advising on pension transfers and pension opt-outs.

What due diligence do you need to carry out?

Following the regulations which came into force from November 2021, the Scheme Trustees will carry out the following checks.

First condition check: We will check that the receiving scheme is listed in the transfer regulations and is one of the following:

• a public service pension scheme (schemes established by a public authority for civil servants, armed forces, health service workers, teachers, judiciary, police, firefighters and local government workers)
• an authorised master trust on The Pension Regulator’s published list.
• a collective defined contribution (CDC) scheme that has obtained authorisation and is included on the list published by The Pension Regulator

If we are satisfied beyond reasonable doubt that the receiving scheme is one of those listed above, the transfer can proceed without any further checks.

Second condition: We will check for an employment link, overseas residency and red and amber flags.

Where the receiving scheme is not one of those described in the first condition, we must consider whether the second condition is met. This may require us to carry out further checks to assess the level of risk to the member. We may be satisfied from previous checks on the receiving scheme that the transfer is low risk and therefore the second condition is met.

If the transfer is to an occupational pension scheme then we will also request evidence from the member to demonstrate that there is an employment link.

If the transfer is to a qualifying recognised overseas pension scheme (QROPS) we will request evidence from the member to either establish overseas residency or an employment link, depending on the member’s employment status.

If we believe that the member has failed to provide a substantive response to a request for evidence, we will send a reminder at least one month after the initial request. If there is still insufficient evidence after one month from the reminder being sent, this may be treated as a red flag.

If our initial due diligence shows that the receiving scheme is not an authorised master trust or CDC scheme, or a public service pension scheme, and it doesn’t appear on our clean list, we will need to assess it more closely.

In certain circumstances (red flags) we may decide that we cannot proceed with a request to make a statutory transfer. In addition, there are other circumstances (amber flags) where there is enough risk to the member’s outcomes which means that the member must prove to us they have obtained guidance from MoneyHelper before the transfer can proceed. We may need to contact the member to obtain further information to assess if there are any red or amber flags. The information we request will be reasonable and proportionate to the level of risk we believe may be present. Any information requested will be for the sole purpose of helping us to decide whether the transfer can proceed. Usually we will call the member with these questions but if it is necessary to send these questions, then we will check that they have completed the answers themselves.

If we decide that the second condition has been met, we will notify the member of our decision no later than the date we confirm that the transfer has been made.

How is the employment link assessed?

Where a transfer is being made to an occupational pension scheme not listed in the first condition and where the residency link is not being tested or does not apply, we will request the following evidence from the member to determine whether a statutory transfer can proceed:

• A letter from the member’s employer confirming the member’s continuous employment. This should include the date that the member’s continuous employment began, that they are a sponsoring employer of the receiving scheme and confirmation that contributions on the schedule of contributions have been paid and the dates of those payments.
• A schedule of contributions or payment schedule showing the contributions due to be paid by the employer and by or on behalf of the member in the last three months and the due dates.
• Payslips for three months, or other evidence in writing, confirming the member’s salary (including any commission, bonuses or other amounts paid) is above the lower earnings limit for National Insurance.
• Copies of bank or building society statements or passbook showing the deposit of salary from the employer for the last three months.

We may request certified copies of the evidence, and in the case of print-outs of bank statements, particularly those from members who have paperless accounts, we may ask that these are endorsed as originals by the member’s bank branch.

If the transfer is to an overseas pension and the member’s salary is paid in a different currency, we will check the rate of exchange on the date the payments were made to calculate if they meet or exceed the lower earnings limit.

If, based on copies of the documents referred to above, we have reason to believe that there is no employment link, this is an amber flag. If we decide there is an employment link and no other red flags or amber flags are present, the transfer may proceed.

How is residency for overseas transfers assessed?

This only applies where the transfer is being made to a qualifying recognised overseas pension scheme and where the member has not provided evidence that satisfies us that an employment link exists.

In these cases, we will check that the member is resident in the same country that the receiving scheme is based by obtaining a copy of the member’s formal residency documentation and at least two other items of evidence that demonstrate they are resident on the date we received the transfer application. This evidence will vary depending on the country of residence but could include:

• utility bills
• TV subscriptions
• insurance documents relating to their overseas home
• the address registered on their driving licence
• bank account and credit card statements
• evidence of local tax being paid
• registration at that address with local doctors

We may request a certified copy of the formal residency document and, where the documentation is not in English, a certified translation by a professional translator of the other two items of written evidence. This should be paid for by the member.

If we have reason to believe that overseas residency is not demonstrated, this is an amber flag. If we decide that overseas residency is demonstrated, and no other red or amber flags are present, the transfer can proceed without any further checks.

How long does it take to carry out the due diligence and checks for transfers?

We aim to complete our due diligence and related checks for transfers within 6-8 weeks however in some circumstances, this can take up to six months. If concerns are raised during the due diligence process, we may request further information which the member will need to provide. If this delays the request timeline, then we may apply for an extension of the normal six month time period for transfer payments. Such an extension will be notified to the member six weeks before the extension is required.