The With Profits Section is a cash balance scheme. This means that it operates differently to other benefits in the Cheviot pension which are money purchase benefits. It closed to new contributions at the end of 2002. This means you can’t pay in any more contributions but the savings you made before then are still looked after by Cheviot. Your With Profits benefits are managed differently to any savings you may have in the Cheviot Lifeplan or other fund options.

Interest rates

Your savings in the With Profits Section increase in line with guaranteed interest rates up to your Normal Retirement Date. The interest rate depends on when your contributions were paid. The interest paid is compound interest, which means you get interest on previous interest awarded. Your savings are not directly affected by the value of the assets as they are in the Cheviot Lifeplan or other options.

After your Normal Retirement Date, the interest rate is based on current base rates. It is reviewed regularly and can change without notice.

Once interest and bonuses have been added, they cannot normally be taken away. However, in exceptional financial circumstances, it is possible that the value of your account could go down. It is very unlikely that any further bonuses will be added.

Transferring your benefits

You can transfer your benefits to another provider. The transfer value is calculated on a basis agreed by the Trustee. Your transfer value is shown on your benefit statement and is usually less than your current fund value as it takes account of future investment returns.

Accessing your benefits

You will need to transfer your With Profits benefits before you can access them at retirement. For more information, please see the Your options Factsheet. If you transfer them to the Money Purchase Section of the Cheviot pension, you will be able to take advantage of the flexible benefits offered, including flexible drawdown.

It makes sense to take advice when making important financial decisions. Pension Wise is a free, impartial guidance service provided by the Government. Alternatively, you can transfer your benefits to another provider.

Summary Funding Statement

The Trustee reviews the funding position of the With Profits Section each year with the Scheme Actuary and produces a formal valuation report every three years. Read the latest Summary Funding Statement for more information.

For more information about the With Profits Section and details of the interest rates applied, please see the With Profits factsheet.

Other documents

Statement of Investment Principles - With Profits Section

This explains how the Trustee invests the assets of the Section.


Actuarial Valuation at at 31 December 2020

This contains the details of the Scheme Actuary’s review of the Section’s financial position as at the latest formal actuarial valuation date (31 December 2020).

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