What happens if I leave?

If you leave Diageo before retirement, e.g. to take another job elsewhere, you will have the following options:

With less than 3 months membership

You will be given a refund of your contributions you have made, less tax at 20% (no refund will be available in respect of any period you took part in Salary Exchange for Pensions).

With more than 3 months but less than 2 years membership

You will be given the option to either:

  1. take a refund of the contributions you have made, less tax at 20% (no refund will be available in respect of any period you took part in Salary Exchange for Pensions) ; or

  2. transfer your benefits to another suitable pension arrangement. 

Your transfer value is likely to be less than the notional value of your Retirement Account, but not less than your own contributions.

With more than 2 years’ membership

You will be given the option to either:

  1. leave your benefits in the Plan until retirement

  2. transfer your benefits to another suitable pension arrangement

  3. If you are age 55 or over you may apply to receive your retirement benefits early.

Your transfer value is likely to be less than the notional value of your Retirement Account, but not less than twice your own contributions.

Deferred benefits

Your deferred benefits will become due for payment from age 65.

If you leave your benefits in the Plan, your Retirement Account will be increased each January between the date you leave the Plan and the date of payment as follows:

  • any credits to your Retirement Account up to 30 June 2012 will increase in the future in line with the rise in the Retail Prices Index (RPI), up to a maximum of 5% a year;

  • any credits to your Retirement Account from 1 July 2012 will be increased in line with the rise in the Consumer Prices Index (CPI), up to a maximum of 5% a year.

The increases are applied to the balance of your Retirement Account at the previous 1 January.

Early payment

If Diageo agrees, you may choose to receive your retirement benefits early from age 55.  The Retirement Account will be reduced to reflect that the benefit is being paid early.

Late payment

If Diageo agrees, you may choose to receive your retirement benefits after age 65 (but not after age 75). The Retirement account will be increased to reflect that the benefit is being paid late.