What happens if you leave?

If you leave service, no further contributions are payable into the Scheme.

When you leave service, contributions for future pension benefits cease from both you and the Company. You will become a deferred member of the Scheme and your pension will remain in the Scheme waiting for you until you either draw your benefits or transfer them out to another pension arrangement. For more information, see the Leaving the Company - what to expect guide below.

Draw your benefits

If you're aged 55 or over, you can decide to draw your benefits. If you draw your benefits before the Scheme’s normal retirement age (65), it will be adjusted to account for the fact that it is likely to be paid for longer.

For members of the 2000 Section, there is likely to be a difference in the factors used to adjust your pension for early payment depending on whether you draw your pension immediately on leaving service (from active status) or at a later date (from deferred status). There may be adverse implications if, on early retirement, you choose to take your BAE Systems pension at a different time from your Leonardo pension. Please see the FAQs section of this website for more information.

Transfer out

If you don’t wish to draw your benefits from the Scheme (or you’re under age 55), you might want to consider a transfer to another pension arrangement. Please remember that the Scheme pension is a valuable benefit and if you wish to transfer to a defined contribution arrangement and your transfer value is more than £30,000, you will need to take independent financial advice.