Reaching maximum membership

As a member of the Fund, there may be a limit on the number of years you can actively save for retirement, known as ‘maximum membership’. If you reach your maximum membership, you can continue to work for BTP, but what happens to your pension depends on what section of the Fund you are paying into.

If you have transferred benefits from another pension scheme into the Fund, the additional service provided by the transfer is added to the period you have been contributing to the Fund. This makes up your total membership. It is this membership that counts towards your maximum membership service.

Maximum membership service rules for members of the1970 Section

Before April 2006, members could not earn more than 30 years’ membership in the Fund. Since 6 April 2006, members of the 1970 Section are no longer limited to 30 years’ maximum membership. This means you can save for retirement with the Fund until you come to claim your pension and retire, regardless of when you’ve started saving towards your Fund pension and the number of years you’ve been an active member of the Fund for.

If you reach 30 years’ membership, you have 2 options to choose from. You can either:

• continue to contribute to your Fund pension as normal and earn more than 30 years’ membership, or 
• stop contributing to your Fund pension and stop earning membership. However when you take your benefits, they will be calculated using your final average salary when you do so, not your salary when you reached 30 years’ membership.
  

Under both options you will keep your death in service cover. 

Maximum membership service rules for members of the 2007 Section

Members of the 2007 Section of the Fund have a maximum membership service of 35 years. This means that once you reach your maximum membership, you can’t earn any more membership.

If you reach 35 years’ membership, your contributions will continue and you will remain covered for death in service. When you take your benefits, they will be calculated using your final average salary when you do so, not your salary when you reached 35 years’ membership.

Maximum membership service rules for members of the CARE Section

Members of the CARE Section of the Fund aren’t limited by a maximum membership. This means you can save for retirement with the Fund until you come to claim your pension and retire, regardless of when you’ve started saving towards your pension and the number of years you’ve been an active member of the Fund for. You’ll continue to be covered for death in service.