Your pension benefits
If you are no longer building up pension in the Scheme but haven’t yet taken your benefits, you’re classed as a deferred member.
Find out more about the benefits available to you as a deferred member of the Magnox Group of the Electricity Supply Pension Scheme (Magnox ESPS).
Your deferred pension payments (contributions)
As a deferred member, you and your employer are no longer paying pension contributions into the Scheme.
The contributions paid while you were an active member will remain in the Scheme until you reach Normal Pension Age (NPA), unless you decide to transfer your benefits to another pension provider. Check the transfers page for details.
Additional Voluntary Contributions (AVCs)
If you saved extra towards your Magnox pension by paying Additional Voluntary Contributions (AVCs) while you were an active member of the Scheme, these additional payments will remain in the Scheme until you come to claim them together with your main pension and lump sum.
Whilst as a deferred member you can’t make extra payments towards your deferred pension, because you’re no longer building up benefits in the Scheme, you can still log to your AVCs online account(s).
The Magnox ESPS has two AVC providers, Aegon and Prudential, and you may have accounts with both of them depending on your circumstances.
Aegon AVC members
If your AVC provider is Aegon, you can register for an online account with them on their website. To do this, you will need your account number which can be found in your Aegon Annual Benefit Statements.
Once you create an online account, you’ll be able to change how your contributions are invested if you wish to. Alternatively, you can contact Aegon by telephone on 0345 601 7720, or email, My.pension@aegon.co.uk.
Aegon’s service level agreement for processing fund switches is 1 working day. Fund switches instructed online, by telephone or email before close of business will typically be processed the same day. You will receive confirmation of the fund switch the next day.
You can review and amend your investment strategy at any time.
Prudential AVC members
If your AVC provider is Prudential, you can register for an online account with them on their website. To do this, you will need the Scheme number which is AF24. Once registered you will be able to see your investments.
If you wish to change how your fund(s) are invested, you will need to email your instructions to the Scheme administrator, Railpen at enquiries@railpen.com. Once received Railpen will then action your request with Prudential. This usually takes around 15 working days but it may take longer.
Your benefits
As a Final Salary member with deferred benefits in the Scheme …
You will get an income when you put your pension into payment
When you put your pension into payment, you will be entitled to:
- an annual pension, and
- a one-off, tax-free, lump sum
These are based on a proportion of your Pensionable Salary and the years of Contributing Service/Pensionable Service you have built up at the date of leaving.
Each April, your deferred pension increases in line with the Retail Price Index (RPI). More information is available in your member booklet.
For the lump sum, this is usually tax-free up to £268,275 but may be more if you have protection from HM Revenue and Customs (HMRC). To check if you do, please log in to your HMRC account.
You can claim payment of your unreduced benefits at your Normal Pension Age (NPA), however you can also choose to retire earlier. If you retire before your NPA, your benefits will be reduced for early payment. Please see the your retirement options page for details.
Your dependants could be entitled to death benefits
This may include:
- a lump sum or refund of contributions – which is payable depends on your circumstances
- a pension – this could be for a spouse, children or other dependant
You can find out more in your member booklet.
You can tell the Trustee who you would like to receive the death benefits payable. It’s important to ensure your nominations are up-to-date and reflect your wishes as the Trustee will take them into account when deciding who should receive your money. You can make or update your nominations any time in your myESPS account or by printing the Nomination form available on the nominations page.
Keep your details updated
It's important that we can continue to get in touch with information about your pension. Please remember to update your details if your address or personal circumstances change.
You can do this by logging into your myESPS account,
Alternatively, you can contact the Scheme administrator, Railpen, using the details on the get in touch page.
