About the plan

How it works When you retire Death benefits Leaving the Plan Get in touch

Overview

The Compass Group Pension Plan (the Plan) is Compass’s pension arrangement in the UK and provides both defined benefit (also known as ‘salary related’) and defined contribution (also known as ‘money purchase’) pension benefits. (Defined contribution benefits since 1 January 2024 when the Compass Retirement Income Savings Plan (CRISP) was transferred into the Plan and became the CRISP Section of the Plan).

The Plan is set up under a trust and prior to the transfer in of CRISP was already made up of a number of defined benefit schemes which have been merged together.

The Plan is closed to new members, other than those joining the CRISP Section, and to future build-up of benefits on a defined benefit basis (with the exception of a small group of members previously in public sector schemes).

The CRISP Section of the Plan is open to employees who have been told that they are eligible to join, or who have completed two years’ service.

If you are an active member currently paying pension contributions and continuing to build up a pension you can access details of your pension online by logging into the XPS member portal.

How it works

For each year (or part year) that you are in the Plan and pay pension contributions, you build up a pension.

Each year you’ll receive an annual benefit statement estimating what your pension could be if you work until your normal retirement age. Your normal retirement age depends which section of the Plan you are in and will be shown on your statement.

How your pension builds up

The rate at which your pension builds depends on the section of the Plan that you are in, but typically, you build up 1/60th of your pensionable salary at retirement for every year of service.

How your pensionable salary is worked out also depends on which section of the Plan you’re in. It will typically be equal to your highest basic salary in any one year in the 10 years before you retire or leave the Plan.

So, if your pensionable salary is £15,000 and you have been in the Plan for 15 years, the pension built up would be:

1/60 x £15,000 x 15 years = £3,750 per year

AVCs

As well as paying your normal contributions to the Plan, you can also choose to pay Additional Voluntary Contributions (AVCs). AVCs are a great way to give your pension a boost.

It’s important to remember that AVCs work a little differently to your normal Plan contributions. The amount of money in your AVC account at retirement will depend on how much you contribute and how it is invested.

The AVCs you make will be invested and, unlike your Plan contributions, you are in control of any investment choices when it comes to your AVCs. Through its arrangement with Legal & General, the Plan offers a range of investment fund choices for you to consider.

You can request more information on AVCs via the XPS member portal.

When you retire

With consent from the Trustees, you will be able to retire at any time from age 55 (age 57 from 6 April 2028 when the minimum pension age increases). However, if you retire early (before your normal retirement age), your pension will be reduced to account for it being paid for a longer time.

The basics:

The Plan will pay your pension monthly for the rest of your lifetime.
Your pension payments are taxed as income and will usually increase in April each year.
You will normally have the option to exchange part of your pension for a cash lump sum. Under current legislation, this is tax-free.

If you choose to carry on working after you reach your normal retirement age, you can carry on paying pension contributions and continue to build up your pension.

To find out more about the options you have when you retire, please visit the XPS member portal.

Death benefits

If you are an active member of the Plan and you die while working for Compass, the following benefits will normally be payable:

A lump sum equal to 3x your annual rate of basic pay at the date of your death; and
A pension that will normally be paid to your spouse or dependant equal to 50% of the pension you would have received had you continued in service up to your normal retirement age (this is based on your pensionable salary at the date of your death).

The Trustees have discretion to determine who will receive the lump sum payment. To help inform their decision, it’s important that you fill out an Expression of Wish form and keep it updated if your circumstances change. Your form will be used to help the Trustees decide who receives any lump sum payment when you die.

Log into the XPS member portal to complete your Expression of Wish form.

Leaving the Plan

If you leave the Plan, you are entitled to a pension payable from your normal retirement age based on your service in the Plan and your pensionable pay at your date of leaving.

This pension will increase between your date of leaving and your normal retirement age to take inflation into account.

Alternatively, you have the option of transferring your pension to another approved pension arrangement. If you’re thinking about transferring out, please read our ‘Stay scam smart’ article on the Noticeboard.

When considering transferring out of the Plan, you may want to think about getting financial advice as this is a permanent decision and if your transfer value is more than £30,000, you are legally required to take independent financial advice. For information on how to find a financial adviser you can visit MoneyHelper website.