Leaving the Fund, or ‘opting out’

While you are still working for the bank you can choose to ‘opt out’ of the Fund. You can opt out at any time and there are some good reasons why you may want to, but you should speak with an independent financial adviser before you do. That’s because if you opt out, you’d be giving up valuable benefits and would not be able to re-join the Fund.

A step-by-step guide to opting out

What else you should know

1. If you opt out while still working for the bank, you’ll automatically join another saving plan

   Depending on your reason for opting out, the bank may automatically enrol you into its defined contribution pension arrangement, the NatWest Group Retirement Savings Plan.

   More information

   • How the Plan works. You build up a pot of money that you can use when you decide to stop work. You put in some money every month, the bank puts in some for you too, and you’ll get tax relief on top. This money is invested to help it grow. How much you’ll get when you stop work depends on how much you put in, how the investments perform, and how you choose to take your money when you come to use it.

     Visit the NatWest Group Benefits Hub to know more

   • You’ll start by automatically saving 8% of your ValueAccount. You can choose to save more than this if you like, up to certain limits.

   • You can opt out of this Plan too, if you want to. You might want to do this if you’ve already built up a total of more than the Lifetime Allowance in pension savings and opting out could mean you’d avoid losing any valuable tax protections.

     Log in to see how much you've built up in the Fund

2. Your pay will be affected

   Opting out of the Fund may mean your take-home pay goes up, but not always, and you may not be better off overall. That’s because the value of the Fund pension you’d be giving up is usually greater than the extra take-home pay you’d get.

   You may also be automatically enrolled into the NatWest Group Retirement Savings Plan, which you’d need to contribute to.

   Currently you pay a percentage of your basic salary into the Fund. If you join the NatWest Group Retirement Savings Plan when you opt out of the Fund, you’d no longer be paying this percentage into the Fund, but you would contribute 8% of your ValueAccount into the NatWest Group Retirement Savings Plan instead.

3. The income you would receive (when you retire, for the rest of your life) would be affected

   The amount of lifetime income you’ll get will be calculated using your pensionable service and final pensionable salary at the date you opted out.

   Between the date you opt out and the date you start taking your pension, it should increase a bit every year to help keep up with the cost of living (inflation).

   Log in to check your Schedule Factsheet for how much it will increase

Leaving the Bank

If you stop working for the bank, you’ll automatically leave the Fund and stop building up further benefits. You can then choose to keep your benefits in the Fund until you’re ready to take them or transfer some or all of your benefits to another pension arrangement.

What changes if you keep benefits in the Fund?

1. You’ll become a deferred member

   While you are working at the bank and a member of the Fund, you are an active member; building up future benefits each year. When you leave the Bank, or if you remain at the bank and opt out, you stop building up benefits and defer your Fund pension until you decide to take it.

2. You’ll need a password to log into your pension record

   Once you’ve left the bank, you’ll need a username and password to log into Your Pension. Get in touch so that we can send you these details.

3. Your income would be affected

   The amount of lifetime income you’ll get will be calculated using your pensionable service and final pensionable salary at the date you left. Shortly after you’ve left the Fund, we’ll send you a statement of benefits which confirms the value of your benefits at the date of leaving. You can also log in and request this statement.

4. Death benefits may change

   Pensions paid to loved ones would be based on your deferred retirement income and any lump sum payment would be calculated differently compared to if you were an active member. Your Schedule Factsheet shows what’s paid if you die when you’re a deferred member.