Frequently Asked Questions.
What happens to my pension if I die?
If you die before or after you retire and start taking your Tesco Pension, you could be eligible for death benefits to be payable from the Scheme. If eligible, these benefits may include: a tax-free cash lump sum, a spouse or civil partner's pension worth 60% of your pension; and a child pension worth 25% or 40% of your pension depending on the number of children. Read more about death benefits here.
To tell us who you'd prefer to receive payment of any tax free lump sum, it's important to complete your Expression of Wish. The Trustees will take your wishes into consideration when they make the final decision as to who receives payment. Remember to keep your Expression of Wish up to date if your situation changes in the future and you'd like to change the names on the form - even after you retire. You can complete and update your Expression of Wish online here.
What happens to my pension if I'm too ill to work?
If you have a pension in the Scheme and are unable to continue working because of permanent illness or injury, you may be eligible for an ill-health pension from the Scheme.
You could be eligible to apply for the ill-health pension, regardless of whether you're at Tesco or working elsewhere; whatever your age; and however long you've been in the Scheme. However certain conditions do apply.
You may also be eligible to receive your ill health pension unreduced for early payment.
To find out more about eligibility and what to do next, speak to your People Manager. If you're not working for Tesco, contact us to find out more.
What happens to my pension if I divorce or separate from a civil partner?
If you're getting divorced or are separating from a civil partner, you may be asked to share your pension with your spouse or ex-partner. If the court issues a Pension Sharing Order in favour of your ex-spouse or partner, it will state what proportion of your pension must be allocated to them.
The Tesco Pension Scheme doesn't provide benefits for former spouses or partners, so their share of your pension must be transferred to a scheme of their choice, outside of The Tesco Pension Scheme.
To check what the total value of your pension would be before a Pension Sharing Order is applied, you can apply for a divorce quote online. This total value is known as a cash equivalent transfer value.
Read more about divorce and your pension benefits in the Scheme here. There's also a divorce leaflet for further detail.
What happens to my pension if I want to retire and take my pension?
About six months before you reach normal retirement age, we'll automatically send you a retirement pack. It will state your total pension value, explain your options, and include some forms that you will need to complete and return.
If you'd like to retire sooner than your normal retirement age, you should complete the 'retirement quotation request' form online. We'll then send you a retirement pack.
If you'd like to retire later than your normal retirement age, when you receive your retirement pack in the post, call the Tesco Pensions Helpline on 0345 070 1113 (option 2) to let us know.
You can read about normal retirement age here.
What happens to my pension if I leave Tesco?
You don't need to let us know; we find out automatically. However, you do need to make sure you keep your details up to date (eg, your address, bank details and Expression of Wish). Scroll down this page for information on how to update your details.
Can I transfer my pension from the closed Tesco Pension Scheme into the Tesco Retirement Savings Plan (administered by L&G)?
Yes, you can ask for a transfer from the closed Scheme into the Tesco Retirement Savings Plan. However, the trustees of the Tesco Retirement Savings Plan will ask you to provide evidence that you've taken financial advice, so you can be sure that you're happy with your decision. The Trustees of the Tesco Pension Scheme may also need to see evidence that you've taken financial advice. MoneyHelper can help you find out how to get some advice. If you wish to make a transfer, you can get started by completing the transfer quote form online.
Why can't I have a refund of my contributions from the closed Tesco Pension Scheme?
Under Government rules, if you have paid into a pension scheme for more than two years, you can't have a refund.
With the pension that you have built up in the Scheme, you can either:
- keep it in the Scheme and it will increase in line with inflation each year, up to a maximum of 5%. It will continue to be looked after by the Trustee, until you're ready to take it
- transfer the pension to another pension provider at any time
Can I transfer my pension benefits from my previous company, or pension, into the Tesco Pension Scheme?
You cannot transfer any funds in to the Tesco Pension Scheme because it is closed.
Do I have to retire at age 65?
No, you can choose when you retire and take your pension - currently you can choose any age from 55 (or any earlier age if you are eligible for an ill health pension). Read more about pension age here.
When's the earliest I can take my pension?
Currently the earliest you can take your pension is age 55 (unless you are eligible for an ill health) - this is known as the normal minimum pension age. If you do decide to take your pension early, the amount you receive will be smaller as you'll receive it for longer. Read more about pension age here.
The normal minimum pension age is changing from 6 April 2028. From this date, the earliest age from which you can normally start to take your pension will be age 57. If you take your pension before age 57 after 5 April 2028, you may have to pay a tax charge on your pension. For more information, please click here.
What's the latest I can take my pension?
You can choose to take your pension as late as you want. If you do choose to retire and take your pension later, the amount you'll receive will be higher as you'll receive it for less time. Read more about pension age here.
Can I take my tax-free cash lump sum but take my pension at a later date?
No, you have to take your pension and your tax free cash lump sum at the same time.
Can I continue to work and claim my pension?
Yes, you can choose to continue working, even if you're claiming your pension. If you choose to take your pension and stop working, you can change your mind and start working again in the future.
Remember, if you're working and claiming your pension you'll have more income and may need to pay higher tax because of this. So you may want to consider your tax position before making a decision.
How can I find out how much pension I'll get when I retire?
To help you plan for retirement, you can request a retirement quote online here at any time. Your quote will show you how much pension you could expect to receive at the age you say you want to retire. You can request information for different ages if you want to compare them, eg, age 60 and 65.
Your quote will show you two options for your pension value:
- As full pension, shown as an annual payment figure
- As a tax-free lump sum, plus a reduced pension shown as an annual payment figure.
The values given in the quote are before tax. You'll also see your AVCs and options for using them.
How will my pension be paid? Will it increase in payment?
All pensions are paid four weekly into a UK bank or building society account. If you pay tax, this will be deducted at source under the PAYE system.
If you decide to take a tax-free cash lump sum, the Pensions Team will arrange a payment direct to your bank account.
When your pension is in payment, it will increase in line with inflation up to a maximum of 5% a year. Inflation is based on CPI for pension built up on or after 1 June 2012 and RPI for pension built up before 1 June 2012.
If you have been receiving your pension for less than a year, you will receive a proportion of the increase based on the number of months since your pension started.
I was offered and chose a Trivial Commutation payment, but now I can't receive it. Why is that?
A trivial commutation payment is when you take the whole of your pension as cash. You can only do this if the total value of all your pension benefits calculated using special rules set by the Government (but not including State Pension) is less than £30,000.
If you're not eligible for a trivial payment, you can still choose to take up to 25% as a one off tax-free lump sum payment when you retire, with the rest as a reduced pension for life.
How do I change my name?
If you're still working for Tesco and want to update your name, please speak to your Wages Clerk or your People Manager. They'll explain what documents you need to provide and help process your request.
If you no longer work for Tesco or if you're already receiving your pension, please call the Tesco Pensions Helpline on 0345 070 1113 (option 2). They'll explain what documents you need to provide for the change to be made.
How can I update my details?
Please go to the update your information page for more information.
What's my tax reference code?
You may need to quote your tax reference code when you complete forms for the Scheme, or when you want to talk to the HMRC about tax. You'll find your code in this list:
If you're working for Tesco your tax code is 846/T1, except for:
Tesco IMS colleagues: 846/GA31025
Tesco Underwriting colleagues: 663/SA44749
Tesco Pension Investments (TPI) colleagues: 120/YA68637
Isle of Man colleagues: C100543E01-94
Expats working overseas: 321/KA81217.
If you've retired from Tesco, including Tesco Bank and TPI, your tax code is:
846/T2PP (except for retired Isle of Man colleagues, whose tax code is X010168E01-54)
Someone has died who was a member of the Scheme. What do I do now?
Please call the Tesco Pensions Helpline on 0345 070 1113 (option 2). We'll help guide you through the next steps and take all the details that we need.
I'm having difficulty completing an online form - where can I get more help?
If you'd prefer to complete a paper form and post it to us, you can download a form from the 'Paper forms' section of this page and print it off.
If you're not sure how to answer a question on a form or need the address to send your form to, you can get in touch with us for more help or see our contact details here.
Have you received my completed declaration forms from my retirement pack?
Please call the Tesco Pensions Helpline on 0345 070 1113 (option 2) if you'd like to confirm that we have received your completed forms from your retirement pack.