Allied-Lyons
plc New Pension Scheme
In January
1980, J. Lyons & Co employees were
invited to join a new Allied-Lyons plc
pension scheme. This scheme was not only
made available to Lyons employees but
Allied Breweries staff were also eligible
to join since it had improvements over
their previous scheme. It is not known how
many of the Lyons staff elected to stay in
the old J. Lyons & Co Pension Scheme,
there were some, but the vast majority
elected to transfer. The comparisons below
of the two pension schemes apply to the
main pension fund schemes.
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J.
Lyons & Co
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Allied
Breweries 1980
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Pension
Scheme
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|
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B
Scheme (note 3)
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A
Scheme (note 3)
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What
counts as pensionable
earnings
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All
earnings in each pay period less
an amount equal to 1.1/2 times
the State Flat Rate Benefit (old
age pension at that time
£23.30 a week, so 1.1/2
times = £34.95 a week) over
the same period.
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All
earnings in each pay period less
an amount equal to the State Flat
Rate Benefit (at that time
£23.30 a week) over the same
period.
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Same
as B Scheme
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Member's
Contribution
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4.1/2%
on all earnings, less an amount
equal to State Flat Rate Benefit,
with an additional 2.1/2% from
those earning more than £135
per week.
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2.1/2%
of pensionable earnings.
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4.1/2%
of pensionable earnings.
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Member's
Pension
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1/60th
of final pensionable earnings for
each year of pensionable
service.
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1/80th
of final pensionable earnings for
each year of service after 5
April 1980, plus pre 6 April 1980
entitlement.
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1/60th
of final pensionable earnings for
each year of service after 5
April 1980 plus pre 6 April 1980
pension entitlement. For those
who have been B Scheme members
that service will count for
1/60th as though it had been A
Scheme service.
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Leaver's
Benefits
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Deferred
pension escalated at 3% a year
or, if a member wishes and where
permitted, bought back into the
state scheme, plus refund
|
Bought
back into State scheme.
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Same
as J. Lyons Fund.
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Death
in Service
(a) Lump sum
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From
two to four times PAYE earnings
in last tax year, plus return of
contributions
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A
sum equal to PAYE earnings in
last tax year.
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A
sum equal to twice PAYE earnings
in last tax year
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(b)Widow/
widower/dependent pension
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None
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Half
the member's pension
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Half
the member's pension
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(c)
Dependent child allowance
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None
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1
child: 1/2 widow pension. 2-3
children 1/3 widows pension for
each child
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As
for B Scheme
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Death
in Retirement
(a) Lump sum
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None
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£500
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£500
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(b)
Widow pension
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Widow
only: 1/2 member's initial
pension entitlement
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As
for death in service
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As
for death in service
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(c)
Dependent child allowance
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None
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As
for death in service
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As
for death in service
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Escalation
of pension
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3%
a year
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3%
a year
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3%
a year
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Normal
retirement date
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65th
birthday (male) 60th birthday
(female)
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First
day of month following attainment
of age 65 (male) 60
(female)
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As
for B Scheme.
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Notes.
1. The
Allied Breweries 1980 Pension Scheme was a
new scheme which was offered to staff
throughout Allied and Lyons.
2. The
scheme and its benefits did not start
until 6 April 1980 and all those who
elected to join received a personal
pension payable under existing
arrangements in respect of service before
April 6 1980 and the provisions of the new
scheme applied only to that part of a
person's service after 5 April
1980.
3. The new
1980 Scheme had two categories, A & B.
The B category was for staff in their
first two years of service and those who
joined a company in Allied after they had
reached the age of 51, but did not apply
to people in service at 31 August 1979.
The A category was for staff with more
than two years service provided they
joined before reaching age 51.
4. The
term 'final pensionable earnings' meant
the the average of three best consecutive
years of pensionable earnings in the last
ten years of service.
Of the
total number of employees in the Lyons
Pension Fund in 1980 a few, counted in the
low hundreds, declined to transfer to the
new scheme.
The Lyons
Pensions Office at Cadby Hall closed at
the end of December 1980 when all work was
transferred to the Allied Breweries
Pension Trust, Denmark Street, Bristol.
Michael Williams, Assistant Schemes
Controller, was in charge of Lyons'
pension matters. Alan Wise, who moved from
Lyons Pension Fund to Allied Breweries
Pension Trust in 1979 but remained in
charge of the Pensions Office at Cadby
Hall, continued to work in Allied
Breweries Pension Trust based in Allied
House, St John Street, London. Other
members of the Lyons Pensions Office were
redeployed elsewhere in Lyons, with Lorna
Josey - one of the most ablest of the
Pension Office staff - going the
Divisional Personnel Services.
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