How the Plan works

Your Plan pension is a Defined Benefit pension.

There are two main types of pension:

  • Defined Benefit or Final Salary which is linked to your salary
  • Defined Contribution or Money Purchase which is a pot of money you invest

Your top questions answered

How is my pension calculated?

Your pension is calculated based on three factors, your salary, your years of Plan membership (and membership of previous Eaton Plans ) and the build-up rate, as follows:


 

This means your Plan pension is based on your salary, not investments.

Can I take my pensions money now?

You can take your pension from age 55. This will go up to age 57 from 2028.

How do I start paying additional contributions?

The Plan no longer provides a facility to pay additional contributions. If you wish to pay additional contributions then please contact the Payroll Department.

When is my statement due?

We will send your pension statement each August. It will include the value of your Individual Member Account.

We will send you separately an annual statement of any AVCs or Money Purchase Account that you have.

How do I know the Plan is well funded?

The Trustees regularly check that the Company is willing and able to support the Plan.

As Eaton is an international corporation we have extra support from outside the UK, and the Plan has a guarantee from Eaton Capital Unlimited Company (an Irish Company) whose finances are reviewed by the Trustees each year.

What happens to my pension if I want retire early?

If you retire early your pension will be reduced to take account of the longer period of payment.

Can I take 25% tax free cash out of the Plan, and leave the rest until a later date?

No. You cannot split your benefits in this way. You can only take your defined benefit Plan benefits in one go. You may however transfer out money purchase benefits, like Additional Voluntary Contributions, separately.

Can I cash in my pension in payment for a one off lump sum?

You can convert small pensions for cash. The rules are complicated so please see the Plan Booklet or contact the Plan’s administrators for more information.

Can I have a transfer quotation/retirement quotation?

Yes. You can request one transfer value a year free of charge up to one year before your normal retirement date. You can write to the Plan’s administrators or email them via the Eaton UK Pension Plan mailbox.

Can I change my address over the phone?

Yes you can (subject to security checks) if you are a contributing member of the Plan, or no longer work for Eaton but have benefits in the Plan. However if you are a pensioner you will need to write to us to let us know. If you leave the Company please remember to keep in touch!

Can I keep my contact details up to date?

Yes you can. The details you can update depend on your status:

  • If you are a contributing member of the Plan (or no longer work for Eaton but have benefits in the Plan) you can update your email and phone number in ePA
  • If you are a pensioner you can update your address as well

If you leave the Company please remember to keep in touch!

Guaranteed Minimum Pension

We announced previously that we will be equalising Guaranteed Minimum Pensions under the Plan and simplifying them. To support this, we consulted with members and sent this Announcement and this Guide to those affected (i.e. those who have a Guaranteed Minimum Pension) for whom we held contact details.

The consultation period now closed, and the Trustee is proceeding in line with the approach set out in the consultation documents. If you did not receive the consultation documents because we did not hold your contact details, we will consult with you when you contact us to take your pension benefits. Your consultation period will run for 30 days from the date of receipt of your retirement letter.

If you became a member of the Plan on 1 April 2016 and have since taken a transfer or lump sum in respect of your benefits, or you are the executor of the estate of a member of the Plan who died after August 2022 with no spouse’s pension still in payment, and the Trustee believes your benefits should be increased as a result of equalising Guaranteed Minimum Pensions, then we will contact you.

If you worked for Aeroquip-Vickers

If you worked at Aeroquip-Vickers then you may also have an Individual Member Account (from the former Aeroquip-Vickers Money Purchase Plan) invested in your chosen funds.

This is a pot of money that built up from your and Aeroquip-Vickers' contributions, with a guarantee as to the minimum pension when you retire whatever the value of your account. You can usually take a part of your account as a cash sum at retirement (part of which may be taxed).

If you worked for Eaton before 1989

If you were a contributing member of the Eaton UK Retirement Benefits Plan on 25 May 1990 and joined before 1 January 1989 your benefits from the Plan will also include a Money Purchase Account. This is a pot of money which, like Additional Voluntary Contributions (AVCs), you can use to buy a pension or take as cash (part of which may be taxed).

To find out the value of your Money Purchase Account or your AVC account, go to www.standardlifepensions.com/eaton for With Profits funds and to aegon.co.uk/targetplan for unit-linked funds.