If you get ill
If you’re too ill to carry on with your job, the Fund offers ill-health retirement options.
DC Start
As a DC Start member, if you’re too ill to carry on with your job, you may be able to use the value of your account to buy a retirement income from an external provider, with Nestlé’s consent. The amount of pension you’ll receive depends on the value of your account and the cost of buying a pension at the time - you can read more about this in the Choosing when to retire section.
DC Core
As a DC Core member, if you’re too ill to carry on with your job, you could receive an income of 50% of your pay through an income protection policy. This will need to be approved both by Nestlé and the policy provider. You’ll receive this benefit until you can return to work or until you reach normal pension age, whichever is earlier.
DB Core or DB CorePlus
As a DB Core or DB CorePlus member, you may qualify for a full or a partial ill-health pension.
Full ill health (if you are no longer able to work)
If you are no longer able to work due to an illness or disability, you may qualify for a full ill-health pension. You could receive an unreduced pension, based on:
- Your pensionable service in DB Core and/or DB CorePlus up to the date you stop working for Nestlé;
- An accrual rate of 1/80 in DB Core or 1/70 in DB CorePlus for your pensionable service from 1 August 2017;
- Your career average revalued pensionable earnings (using your full pensionable earnings, not just those up to the pensionable earnings cap) at the date you stop working for Nestlé; and
- Additional pensionable service from the date you stop working for Nestlé up to your normal pension age.
Partial ill heath (If you’re no longer able to do your current job)
If you’re no longer able to carry on with your current job due to illness or disability, you may qualify for a partial ill-health pension. This would be based on:
- Your pensionable service in DB Core and/or DB CorePlus up to the date you stop working for Nestlé;
- An accrual rate of 1/80 in DB Core or 1/70 in DB CorePlus for your pensionable service from 1 August 2017; and
- Your career average revalued pensionable earnings (using your full pensionable earnings, not just those up to the pensionable earnings cap) at the date you stop working for Nestlé.
Benefits from your AVCs and/or DC Core account
If you become too ill to carry on with your job, and you’ve paid AVCs to DC Core, and/or been a DC Core member, you would also receive the value of your DC Core account minus any contributions that you or Nestlé have made over the pensionable earnings cap to DC Core. If you have built up a DC Core account because you have earned above the pensionable earnings cap, this part of your DC Core account will be used towards providing your DB pension. You can use the rest of your DC account to provide additional income.
Pre-August 2017 benefits
If you built up benefits in the lanes before 1 August 2017 and Nestlé accepts medical evidence that you are too ill to carry on with your job, you will also receive any pension you built up in lanes 2 or 3 of the Fund.
Pre-August 2010 benefits
If you were a member of the Fund before August 2010 and Nestlé accepts medical evidence that you are too ill to carry on with your job, you will receive the pension you built up to 31 July 2010, increased in line with the retail prices index (RPI) up to a maximum of 5% a year to the date you stop working for Nestlé.
If you were a member of the final salary section of the Purina UK Pension Plan before August 2010 and Nestlé accepts medical evidence that you are too ill to carry on working, you will receive your pension built up to 31 July 2010, increased in line with the retail prices index (RPI) up to a maximum of 5% a year to the date you stop working for Nestlé. This will be reduced at your state pension age by the Purina pension deduction.
If you were a member of the Purina Pension Savings Plan before August 2010 and Nestlé accepts medical evidence that you’re too ill to carry on with your job, you will receive a pension. This would be based on:
- Your Purina pensionable service up to 31 July 2010 at an accrual rate of 1/60, increased in line with the retail prices index (RPI), up to a maximum of 5% a year to the date you stop working for Nestlé.
If you were a member of the Nestlé Waters UK Ltd Retirement Benefit Scheme before August 2010 and Nestlé accepts medical evidence that you are too ill to carry on working, you will receive the value of your DC Start or DC Core account, which you can use to buy your retirement income.