How will my pension be paid?

Your pension is paid to you monthly, directly into your bank or building society account. If you do not receive pension payments and are expecting them, please contact us immediately with your personal details. Your pension will be paid to you after deduction of income tax. Pensions are subject to income tax in the same way as earnings from employment.

You will receive a pension in payment advice slip with your first pension payment, thereafter, only if there is a change in your net pension of £5 or more. The advice slip will show you the amount of your pension before and after tax. 
SIPS Benefit members can look at their pension payslips online on Hartlink.  All other members can look at their pension payslips online on MyPension.

How will my pension be taxed?

When you start to receive your pension it is subject to income tax just as your salary was when you were working. Indeed, your tax situation may become a bit more complicated if you have different types of income from a variety of sources such as savings, sale of property, various pension schemes, insurance policies that have matured or investments and so on.
When you first start to receive your pension you will be taxed on an emergency coding until the tax office sends you a form to register other income. This may take up to three months. You are responsible for completing the form to ensure your own tax coding is correct. As soon as you retire you should let your tax office know your date of birth so that they can give us the correct allowance. The tax you pay depends on your taxable income in the tax year and includes; 
  • Your state retirement pension
  • Private pensions and AVCs
  • Gross interest from a bank or building society
  • Dividends from shares and UK authorised investments
  • Any earnings from a job or business
  • Income from property
This is not an exhaustive list and you can check the HMRC website for a complete and up-to-date picture. If you want more information about tax allowances and rates you can get current details and further useful information from the pensioner section of the HMRC website.

Tax office details

Pay as you Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom
Telephone for pensioner enquiries 0300 200 3300 (if calling from abroad +44 135 535 9022)
  • BAE Systems Pension Scheme (including Alvis and 2000 Plan Benefits) pensioners should quote reference number 083/B7A
  • BAE Systems Pension Scheme – SIPS Benefits pensioners should quote reference number 765/S1591
  • ROPS pensioners should quote reference number 083/VA28316 

How long will my pension be paid for?

Your pension will be paid from the date you retire for the rest of your life. If you die in retirement before you have received five years' worth of pension, then a lump sum may be paid of the balance of the five years pension. Pensions may be payable to your spouse, adult dependants or children depending on certain criteria. 

For SIPS Benefits members the Administration Centre at Capita will be able to tell your legal representatives of any benefits payable on your death.  For all other members the Pensions Service Centre will be able to provide this information. You can find their details by going to the Contact Us section of this website.

Changing address?

It is very important that you keep us informed of any changes to your address. This allows us to keep in contact with you and ensures continuity of your pension payments.  If post is returned to us undelivered we may need to temporarily suspend your pension for security purposes until we can get in touch with you.