In this section we cover the benefits that are payable to you from the Plan.

There are also benefits that may become payable to your loved ones after your death. You can find more information about these benefits in the Benefits if I die section of this website.

In summary the Plan will provide you with:

• An income for you in retirement (your Plan pension); and
• The option to exchange some of your pension at retirement for a one-off cash sum.
• Financial protection for your loved ones in the event of your death.

You can see how much pension you have built up in the Plan by logging into My Work Pension – your online pension account. Here you will also be able to use the online modellers to see how much this pension may be if you take it at different dates.

Alternatively, you may wish to consider transferring your benefits out of the Plan. This may provide you with different options at retirement.

Please remember to tell us if your contact details change, otherwise we will not be able to send you information about the Plan and your benefits. You can update your contact details by signing into your My Work Pension account or by getting in touch with the Plan’s administrator, Trafalgar House.

You may be able to start receiving your pension as early as age 55 (with the minimum retirement age is increasing to 57 in 2028). You must start receiving your pension no later than age 75. The Plan is set up for members to start receiving their pension from age 60. If you choose to receive your pension earlier, it may be reduced as it is being paid sooner than expected.

You can check the earliest age you can receive your pension without it being reduced by logging into My Work Pension.

Approaching retirement is an exciting time. There are however some key financial decisions you need to make, which will affect you for the rest of your life!

The Trustee wants to help you make the most of the benefits you have built up in the Plan.

The first question you need to consider is whether you keep the benefits within the Plan or consider transferring them to another arrangement.

As well as receiving a regular income from the Plan, there are a number of other options available for how you take your benefits. You can read an outline of these by clicking on the + buttons below.

When you retire you will have the option to exchange part of your pension for a tax-free cash lump sum – up to a maximum amount set by HM Revenue & Customs (HMRC). 

This lump sum is known as a “Pension Commencement Lump Sum (PCLS)”. 

The terms for exchanging pension income for a cash lump sum may be reviewed and altered by the Trustee from time to time.

It may be possible for you to exchange further pension for a lump sum, but this would be subject to tax.

Any pension quotations you receive from the Plan administrators, Trafalgar House, will show the maximum cash sum you could receive.

In certain circumstances you may be able to exchange your entire pension for a single cash payment. For example, if the value of the benefits you have built up in the Plan is below a limit set by HMRC. If this is an option that may be available to you, details will be included in any retirement quotation you receive.

For most members, pension payments from the Plan start being paid before they reach a State Pension age of 66.

The bridging pension option allows you to receive a higher pension from the Plan before State Pension age. This is in exchange for a reduction to your Plan pension from State Pension age. This option broadly ‘bridges the gap’ between retirement and State Pension age.

If you’re eligible to apply for this option, you’ll find details in any retirement quote sent to you by the Plan’s administrator, Trafalgar House.

The bridging pension option allows you to get a higher pension from the Plan until you reach State Pension age, to help even out the differences in your pension income before and after you receive your State Pension. Also, it may be possible for you to retire at an earlier age if you have the option to receive a higher pension in the years before State Pension age.

However, if your Plan pension and/or another income you receive before reaching State Pension age are enough for your needs, then the bridging pension option might not be right for you.

When you come to take your benefits, you may have the option of a one-off increase to the amount you receive as a pension. This is in return for you giving up most of your rights to receive the annual pension increases that are set out in the Plan rules. If you accept the PIE offer, your pension will be paid at the new, higher rate for the rest of your life, but only certain ‘elements’ of your pension will increase in the future.

Choosing whether or not to select this option means weighing up the potential advantages and balancing these against the likely risks. Once you have made your decision this cannot be changed at a later date.

You will find full details of the PIE option when you receive your retirement pack from the Plan’s administrator, Trafalgar House.

You may also wish to consider what options would be available if you choose to transfer your benefits out of the Plan to another approved pension arrangement. To find out more, please click on the ‘Transferring out’ button in the left-hand menu.

You may be able to take all of your benefits in the Plan, as a single lump sum, if you are suffering from serious ill-health.

This is known as a ‘serious ill-health lump sum’ (“SIHLS”) and may be available if a registered medical practitioner has confirmed that you are expected to live for less than one year. Please note that the SIHLS uses all of your benefits in the Plan.

If you think you may be eligible to receive a SIHLS, please contact the Plan’s administrator, Trafalgar House to ask for a serious ill-health lump sum form. Both you and a registered medical practitioner will need to fill the form in before sending it back to Trafalgar House as soon as you are able.

The Trustee will review your case and decide whether a SIHLS is payable in your circumstances. If the Trustee requires further information from you to reach a decision, someone will be in touch with you as soon as possible.

If the Trustee agrees to pay a SIHLS, the value of the lump sum will then be calculated by Aon, the Plan’s Actuary.

Although the SIHLS will extinguish your right to any further benefits from the Plan, a pension will still be payable to your spouse or dependant as defined in the rules of the Plan.

How and when you take your benefits from the Plan are important decisions. But they’re not easy ones to make. Understanding what’s right for you and your circumstances can have a big impact on being able to enjoy the best possible retirement. And that’s regardless of how much or how little you have.

Because of this, if you’re aged 55 or over (57 from 2028), the Trustee will cover the cost of an advice session with a firm of qualified advisers called ‘Origen Financial Services’.

This is a valuable benefit, and one we encourage you to take up as part of your retirement journey.

When should I take advice?

Timing is important as the Trustee can only cover the cost of one session. So, ideally, you’ll take this advice at the point you think you’re ready to retire. Remember, in most cases, you won’t be able to take your Plan benefits until you’re at least 55 (57 from 2028). Before you speak to your adviser, it’s a good idea to get a retirement pack from the Plan’s administrator, Trafalgar House. You can find their contact details here.

If you’re aged 55 or over and are ready to explore taking your benefits from the Plan, you’ll need to contact Trafalgar House, the Plan’s administrators for a retirement and transfer quote.

We strongly recommend you then engage with Origen as early as you can, once you’ve received your retirement quote.

As a guide, you should ideally have at least 10 weeks of your transfer value guarantee period remaining when you contact Origen for the first time. This is to help make sure that, if you’re interested in transferring your benefits to another provider, you can do so within the three-month guarantee period provided in the retirement pack sent to you by Trafalgar House.

If you have less than 10 weeks of your guarantee period left, we recommend that you contact Origen to agree appropriate next steps. You should also note that Origen will only process a transfer of your benefits if this is in line with their advice.

To use the service, please see the ‘How do I use Origen’s service?’ section below.

To use the service, you’ll need to get in touch with Origen. Their contact details are as follows:

Telephone: 0800 152 2014

Email: HewlettPackard@origenfs.co.uk

It’s a good idea to have received your retirement quote from the Plan’s administrator, Trafalgar House, before contacting Origen.

Once you’ve made contact with Origen, they’ll arrange an appointment for you with an adviser. They’ll also send you a link to a financial questionnaire which you should complete before your initial appointment.

Your adviser at Origen will provide you with impartial advice on your options and, based on your circumstances, will advise the appropriate option for you. The advice provided by Origen will be paid for by the Trustee once, so you should make sure you take this advice at the right time for you.

Typically, members will have two advice appointments with Origen, and they will offer you a second appointment if you need it.

Following your advice session(s) you’ll be sent an advice recommendation report and will be asked to provide any further details if needed. Finally, you’ll be invited to a further appointment with your adviser who will present your final recommendation.

The individual adviser from Origen assigned to your retirement case will remain with you throughout the process to provide you with consistency of service. Remember, you can contact the Origen helpline at any point with any questions you might have during the process. Please remember, if you want any further advice from Origen, you will need to pay for this.

Below is a diagram showing you the advice process with Origen.

Can you tell me more about Origen Financial Services?

With a history dating back to 1885, Origen is one of the UK’s leading financial advice firms. Regulated by the Financial Conduct Authority (FCA), they provide a range of services including financial, investments and pensions.

For more information on Origen and the services they offer, you can visit their website: https://www.origenfs.co.uk/

Can I use a different adviser?

If you’d prefer to speak to a different adviser, you’ll also need to pay for this. You can find qualified advisers, regulated by the FCA by going to www.unbiased.co.uk

If you paid AVCs while you were an active member these are held in a separate account. You can use the value of your AVCs to provide additional benefits at retirement. You will receive a statement each year showing you the current value of your AVCs.

You can also use your AVCs to reduce the amount of pension you need to exchange to fund a a tax-free lump sum (known as a ‘pension commencement lump sum’), if you choose to receive one. Any pension quotations you receive will include information about your AVCs, and the options available to you.

Your additional voluntary contributions (AVCs) – have you reviewed where they’re invested?

If you have paid AVCs into the HP Retirement Benefits Plan, they are more than likely to be invested with Legal & General.

It may have been some time since you last reviewed where these AVCs are invested. It is very important that you regularly review investment decisions, to make sure they remain suitable for your needs.

If you have not made an investment choice in the past, your AVCs will be invested in the Legal & General Cash Fund. This fund may be suitable for members who are close to retirement, as the value of the Cash Fund is likely to be more stable than other types of investment. However, if you’re a number of years away from retirement, the Cash Fund may not be suitable for you.

You are able to choose your preferred investments using the individual funds (e.g. equities, fixed interest, ethical, etc). Alternatively, you can choose from one of Legal & General’s ‘lifestyle profiles’. You can change the way your AVCs are invested at any time.

If you are invested in a lifestyle profile, your investments will be automatically moved over time, as these strategies are designed to reduce your level of investment risk as you approach retirement. The way in which investments are switched varies depending on the particular lifestyle profiles. The three different lifestyle profiles are designed to cater for members who would like to:

(i) take all their AVCs as a cash lump sum;

(ii) purchase an annuity; or

(iii) disinvest their AVCs as and when they need to during retirement (known as “drawdown”).

You can find out more about the lifestyle profiles, check where your AVCs are invested and move between funds by visiting your Legal & General online account: www.landg.com/mya

Alternatively, you can contact Legal & General by calling 0345 070 8686

You can transfer your benefits out of the Plan. However, this option won’t be available to you once you start receiving your Plan pension.

If you are interested in getting a transfer value illustration, please get in touch with the Plan’s administrator, Trafalgar House. They will be able to send you a transfer quote, which will be guaranteed for a period of three months. Please note, in any 12-month period, one transfer quote will be provided free of charge. If you request any additional transfer quotes within a 12-month period, you may be charged.

Is the value of the pension you want to transfer more than £30,000 (excluding AVCs)?

If so, please bear in mind it’s a legal requirement for you to take impartial financial advice before transferring to a defined contribution arrangement.

As part of your retirement journey, the Trustee will cover the cost of one advice session with a firm of advisers called Origen Financial Services. To find out more, please click on ‘Financial advice’ in the left-hand menu.

Alternatively, if you would prefer to use a different adviser (at your own expense), you can find a list of financial advisers approved by the Financial Conduct Authority (FCA) at register.fca.org.uk

You may be able to access different options in relation to your benefits if you convert your ‘safeguarded’ benefits to ‘flexible’ benefits by transferring them out of the Plan to a defined contribution (‘DC’) arrangement.

Transferring out to a DC arrangement may, depending on the terms of the receiving scheme, give you the opportunity to choose to receive your benefits in a different way to the Plan.

The specific options and terms of those options available to you from any such scheme will vary and depend on the terms of the receiving scheme. However, we have provided a high level summary of the potential key options below, which may be available.

You may be able buy a different type of pension (known as an ‘annuity’) on the open market.

There are lots of different types of annuities available so you can choose the shape of retirement income that best suits your circumstances. For example, if you are single or a smoker, you may be able to buy a pension which provides you with a higher income than the Plan would provide.

You may be able take all your benefits as cash, either as one lump sum or in instalments. Remember: if you take it as one lump sum, the amount in excess of 25% would be taxed as income – which could push you into a higher tax bracket.

Alternatively, you may be able to take a series of cash instalments and the first 25% of each payment would be tax-free with the remainder taxed as income.

If you transfer your Plan benefits to a defined contribution arrangement, you’ll usually be able take smaller lump sums, as and when you need them. A maximum 25% of each one would be tax-free, with the
remainder taxed as income.

Alternatively, you could take a one-off tax-free lump sum and then invest the rest of your defined contribution account in an ‘income drawdown’ policy.

If you choose income drawdown, you’ll need to decide how to invest the balance of your drawdown account (once you’ve taken a lump sum). With income drawdown, it’s important you’re aware there is a risk you could run out of money before you die. However, you are not tied to drawdown; In the future (and in most cases), you will have the option to buy a pension for life (an ‘annuity’) with the remainder of your drawdown account.

If you are going through a divorce, or the dissolution of a civil partnership, you will normally need to provide details of all your pension savings as part of agreeing any financial settlement.

Our Plan administrator can provide you with a pack giving you all the information you’re likely to need. To start the process, please contact them and let them know you need a divorce pack. This will help make sure you and your solicitor have all the information you need.

Don’t forget, if your personal circumstances change, please make sure you update your choices for who any benefits should be paid to in the event of your death.

Just like a salary from a job, pension payments are treated as taxable income. However, there’s no National Insurance to pay.

How much income tax you’ll pay (if any) will depend on several factors including any other income you receive, and where you live. To find out more, please go to https://www.gov.uk/income-tax-rates

The annual allowance sets the limit on the amount your pension can grow each tax year without incurring a tax charge. This includes your pension from the Plan and any other private pensions you may have.

The annual allowance for the 2025/2026 tax year is £60,000.

If the difference between the capital value of your pension at the start of the year exceeds the value at the end of the tax year by more than the annual allowance, the excess would be subject to a tax charge.

For information on how to calculate this, visit the HMRC website. 

Since April 2023, the annual allowance has been set at £60,000 and we expect it will continue at this level for most individuals. However, If you’re a high earner, it’s possible your annual allowance could be less than £60,000, and as low as £10,000. This is called the ‘tapered annual allowance’.

For this to apply to you, broadly speaking, you’d need to have:

a ‘threshold income’ above £200,000

an ‘adjusted income’  above £260,000

Your threshold income is usually all your income minus the amount you pay into a pension. Meanwhile, your adjusted income is all your income, plus the amount your employer pays into your pension, or the amount your defined benefit pension.

Generally speaking, the standard annual allowance reduces by £1 for every £2 of adjusted income you earn over £260,000.  For example, if your yearly adjusted income was £300,000, your annual allowance would be reduced to £40,000.

The minimum level of annual allowance you’ll have is £10,000 (this is because tapering stops at an adjusted income of £360,000).

If you have taken money from a defined contribution pension, the money purchase annual allowance may apply to you.

For the 2025/26 tax year, the money purchase annual allowance is set at £10,000.

How is the money purchase annual allowance triggered?
It’s only triggered if you take money from a defined contribution pension arrangement using a ‘flexible’ payment option. The most of common of these are:

• moving a pension pot into flexi-access drawdown and starting to take an income from it
• taking a pension pot in its entirety as a lump sum. However, if your pension pot is worth less than £10,000 and qualifies to be treated as a ‘small pot lump sum’, the annual allowance isn’t affected
• if you buy an investment-linked/flexible annuity (which is different to a lifetime annuity)
• exceeding the cap on a ‘capped income drawdown’ policy started before April 2015

When won’t the money purchase annual allowance apply?
The money purchase annual allowance won’t normally be triggered if you:

• use your define contribution pension pot to buy an income that’s guaranteed for life (called a lifetime annuity)
• take a tax-free cash lump sum from your defined contribution pension
• move your defined contribution pension pot into flexi-access drawdown but don’t take any income from it
• take money from a defined benefit pension

If you have triggered the money purchase annual allowance (from any scheme or plan), the provider must tell you. They will do this by sending you something called a ‘flexible access statement’.

Most people will be able to take 25% of the value of their pension free of tax. However, the government limits the total tax-free amount you can take to £268,275. This is known as the ‘lump sum allowance‘. For this limit to apply to you, the total value of all your pension savings would, broadly, need be more than £1.073 million.

There is also the ‘lump sum and death benefit allowance‘. This is a total tax-free limit for all lump sum benefits paid from all your pension arrangements. This allowance is currently set at £1.073 million. The lump sum and death benefit allowance includes:

1. retirement lump sums (please see above)

2. lump sums payable if you were to fall into serious ill-health

3. lump sums payable to your to your beneficiaries if you were to die

In other words, when you come to take your pension benefits from any pension, the amount of tax-free cash you take will reduce the tax-free allowance:

1. you’d be able to take if you became seriously ill, or
2. what your dependents would be able take if you were to die

Measuring your tax-free cash entitlement.

When you come to retire from the Plan, we’ll need to know about any benefits you have taken from other pensions in the past. This will allow us to determine how much of your lump sum allowance and lump sum and death benefit allowance you have left.

Most members are likely to be eligible to receive the State Pension. The amount you will receive depends on the National Insurance contributions you have paid over your entire working life.

Prior to April 2016, the State Pension was made up of 2 elements:

1. The basic State Pension; and
2. The additional State Pension. This was an earnings-related pension, first known as the State Earnings-Related Pension Scheme (or ‘SERPS’) and then later known as the State Second Pension 

As a member of the Plan you were ‘contracted out’ of the additional State Pension whilst in pensionable service before April 2016. This meant you and the Company paid a reduced rate of National Insurance and you will not have accrued any additional State Pension while you were an active member of the Plan. In return, the benefits you accrued in the Plan were designed to ensure you receive a minimum level of pension from the Plan.

If you were a member of the Plan before April 1997, being contracted out meant the pension you accrued before that date was subject to a Guaranteed Minimum Pension (GMP).

If you accrued GMP, and when you retire, we will convert any GMP you’ve built up into regular Plan pension. This converted element of your pension will be subject to increases in a similar way to GMP.

From April 2016, the Government has introduced a new flat-rate pension. You can find more information on the new State Pension at www.gov.uk/new-state-pension

How can I find out how much State Pension I will get?
You can get a State Pension forecast from the government website at https://www.gov.uk/check-state-pension