Northern Trust Pension Review for Expats

A Northern Trust pension review is important because the Northern Trust (UK) Pension Plan may include both DB and DC benefits under one plan.

Research identifies the Northern Trust (UK) Pension Plan as a single plan with both DB and DC sections. The plan is administered by WTW through the ePA portal, and public scheme material includes the 2024 Chair’s Statement and 2024 Statement of Investment Principles. The DC section uses a lifestyle default strategy, while the DB section should be checked separately against the member’s own record.

That distinction matters because DB and DC pensions are reviewed in different ways.

A DB pension may provide guaranteed lifetime income, statutory or scheme-specific increases and dependant benefits. A DC pension may offer greater flexibility, but it also places investment risk, sequencing risk and withdrawal responsibility on the member.

This does not mean a transfer is automatically right. In some cases, keeping the Northern Trust pension where it is may preserve valuable benefits, governance or suitable DC options. In other cases, a former employee may want to compare the existing arrangement with consolidation, a SIPP, an International SIPP or a wider retirement income plan.

Before making any decision, a former Northern Trust employee should confirm:

• Whether they hold DB benefits, DC benefits or both.
• Which section applies to their pension.
• Whether the WTW ePA portal record is complete and up to date.
• Whether the DC lifestyle default strategy is still suitable.
• Whether any DB guarantees, increases or dependant benefits apply.
• Whether transfer options, retirement options and death benefits match their objectives.
• How the pension fits their overseas tax, currency, estate planning and retirement income needs.

Northern Trust pensions can be more complicated for expats because the plan may contain both DB and DC sections, and the right decision depends on the member’s exact record.

Northern Trust is a global custody, fund administration, wealth management and investment management group. UK professionals may have worked in custody, securities lending, fund administration, wealth management, investment operations, technology, compliance, client relationship management or senior leadership roles. Many Northern Trust professionals move between major financial centres during their careers.

That creates several layers of planning complexity.

First, the Northern Trust (UK) Pension Plan is not necessarily a simple DC-only arrangement. Research indicates that both DB and DC benefits are present within the plan. A member needs to confirm their own section before comparing transfer, consolidation or drawdown options.

Second, WTW portal access is central. If the ePA record is out of date, a former employee may not have the latest benefit statement, beneficiary details, retirement option pack or transfer information.

Third, the DC investment strategy should be reviewed. A lifestyle default strategy may be sensible for some members, but it may not match an expat’s current retirement date, withdrawal plan, risk tolerance or spending currency. Public scheme material also indicates that alternative assets such as LTAF options had not yet been added to the DC offering, which may be relevant when comparing investment flexibility.

Fourth, DB benefits need separate care. If DB benefits apply, the review should consider guaranteed income, pension increases, dependant benefits, normal retirement age, early retirement terms and the consequences of any transfer.

Fifth, former Northern Trust employees may hold several pensions from custody banks, asset managers, investment firms or financial services employers. The Northern Trust pension should therefore be reviewed as part of the wider retirement income plan, not in isolation.

A good review should be evidence-led:

• Identify the exact plan section.
• Confirm whether DB, DC or both apply.
• Review WTW ePA records.
• Check investment options and charges for DC benefits.
• Check guarantees and increases for DB benefits.
• Review beneficiary nominations and death benefits.
• Compare the existing pension with wider retirement objectives.

A SIPP or International SIPP may offer broader investment choice, adviser-led oversight, consolidation and flexible drawdown. But those advantages should be compared carefully against the existing Northern Trust scheme benefits, especially where DB or safeguarded benefits apply.

This page is for general information only.

It does not constitute personalised financial, tax, legal, pension transfer, investment or retirement advice.

Scheme details should always be verified directly with the pension administrator, trustee or official member documentation.

Pension transfers, consolidation, drawdown, tax treatment, safeguarded benefits, defined benefit pensions, DC pensions, AVCs, death benefits and retirement options depend on personal circumstances and may change.

Transferring a pension can be irreversible and may result in the loss of valuable guarantees, protected features or benefits.

Defined benefit and safeguarded benefit transfers require particular care and may require regulated UK pension transfer advice.

For Northern Trust pension members, particular care may be needed where benefits sit across the DB and DC sections of the Northern Trust (UK) Pension Plan, where WTW portal records are incomplete, where the DC default strategy no longer matches retirement objectives, or where multiple custody, wealth management or asset management pensions need to be reviewed together.

Investing involves risk. Pension and investment values can fall as well as rise, and you may get back less than you invest.