Retiring from the Sainsbury’s Section

Some members of the Sainsbury’s Pension Scheme who have not yet taken their pension have the option, at retirement, to give up some future pension increases in return for a one-off increase to their pension. This is known as Pension Increase Exchange (PIE).

Not everyone is eligible for PIE, but you can see if it’s listed as an option for you when you log into My Pension. If you receive a retirement statement in the post, it’ll be shown on there, too.

If you choose the PIE option, your pension would be higher at the beginning of your retirement. However, because it will then receive lower increases during your retirement, it might eventually end up being lower than what it would have been if you hadn’t chosen PIE. This is explained in the graph below, which compares two members with identical pensions.

• Mr Jones takes the PIE option, giving up future increases on his pre-1997 pension. This means he receives more money immediately after retiring than Mr Smith.
• As time passes, they reach the crossover point. This is where they receive the same amount of pension each year. This is because Mr Smith, who did not take the PIE option, has been receiving increases to his pre-1997 pension.
• Eventually we reach the break-even point, when both members have received the same amount of money in total pension payments since they retired.

What else do I need to know?

In our Scheme, you’re only allowed to give up increases on the pension you built up before April 1997. That means any pension built up between April 1997 and when you retire will still get increases.

How do I know if the PIE option is right for me?

The specialists at LV= can answer any questions you may have about PIE, to help you decide whether it’s right for you. They’ll look at your personal circumstances (such as how much you earn, how much tax you pay, your health and family situation) to help you make an informed decision.

Do I need to pay LV= for advice?

No, if you want advice about whether or not to take the PIE option, the Sainsbury’s Trustee will pay the cost of this advice. LV= will provide impartial advice based on the right outcome for you and your personal circumstances. Even if you decide not to take the PIE option, you still won’t have to pay.

How do I set up a call?

There is a dedicated LV= helpline and email address for Sainsbury’s members who want to talk about the PIE option:

Telephone: 0800 0223 855
Email: [email protected] 

You’re welcome to have any trusted party, for example your own adviser or family members, join you on the call when speaking to LV=.

By calling LV=, you’re not committing to anything. It’s your choice whether you take the PIE option. Neither Sainsbury’s nor the Trustees or Scheme administrator can provide you with advice on this option.

Some members may have paid Additional Voluntary Contributions (AVCs) to ‘top up’ their pension from the Sainsbury’s Pension Scheme. It’s no longer possible to pay new AVCs into the Scheme, but you can still manage your existing AVC pension pot.

All AVCs are now managed by Legal & General, and you will have access to their online portal, Manage Your Account, where you can see how much your pot is worth and make changes to your investments.

If you’re also a member of the Sainsbury’s Retirement Savings Plan (SRSP), you might already have an online account with Legal & General, and you’ll be able to see details of both your SRSP and AVC pots on Manage Your Account. 

You will receive a statement every year, giving details of your AVCs and how they are invested.

Deciding what to do with your pension is a big decision. We strongly recommend you seek advice about your options. To help you with this, the Trustee has appointed LV= to provide an expert retirement guidance and advice service. 

How much does it cost?

LV= offers a competitive, fixed-rate advice fee for Sainsbury’s members of £1,100 + VAT. If you want to discuss the Pension Increase Exchange (PIE) option specifically, the Trustee will provide a paid-for session of advice with the experts at LV=.