How, and when, you can take your benefits
When you retire, you will be entitled to an annual pension, and a one-off, tax-free, lump sum.
There are also other options you can consider depending on your circumstances, these are outlined below.
When you retire, you will be entitled to:
- an annual pension, and
- a one-off, tax-free, lump sum
Your SLC pension is made up of two elements:
- your pension to 31 March 2024, which is your Final Salary pension, and
- your pension on and after 1 April 2024, which is classed as your CARE pension
What you get when you retire will be based on both of these elements combined (Final Salary pension + CARE pension). You can find out more about each element on the your contributions and benefits page.
You would typically start to receive your pension and lump sum at your Normal Pension Age (NPA).
If you joined the industry:
- On or after 1 April 1988 your Normal Pension Age is 63.
- Before 1 April 1988 your Normal Pension Age is 60.
You can choose to put your benefits into payment before your NPA but if you do these will be reduced for early payments – please select early retirement minimum age in the contents list below to find out more.
You can find out more about your NPA and how your annual pension and one-off lump sum are calculated on the your contributions and pension benefits page or in your member booklet.
The booklet also includes further details about all of the additional options outlined below.
You may be able to exchange/convert part of your benefit entitlement into an extra lump sum.
You can see the current conversion factors below:
This would be paid in addition to the lump sum you get when you retire (as outlined above). However, it cannot be more than 25% of the value of your pension benefits overall.
If you want to take an additional lump sum at retirement, you need to let Railpen know at least 2 months before you start receiving your pension. See the taking your benefits page for more information on the application process.
There are some further restrictions too so make sure to check your member booklet and lump sum allowance information.
You may be able to exchange/convert all, or part, of your Final Salary lump sum, for additional pension.
This option is available on request from the Scheme administrator, Railpen.
If you want to take this option, you need to let Railpen know at least 1 month before you start receiving your pension. See the taking your benefits page for more information on the application process.
Find out more in your member booklet.
If the value of your Scheme benefits is £30,000 or less, you can ask to take it all as a lump sum, if that would work better for you in retirement.
If you take this option, your entitlement to benefits under the Scheme will stop and no death benefits will be payable if you die.
The value of your Scheme benefit is your Final Salary pension plus your CARE pension plus the pension equivalent of your 3x annual Final Salary pension lump sum.
Contact the Scheme administrator, Railpen, for more information.
You may be able to exchange part of your pension to provide additional pension for your spouse, or to provide a pension for any other dependant when you die. The person named as your dependant can be:
- your spouse
- a child, or
- any other person who was completely, or partly, financially dependent on you immediately before your death (this is at the Trustee’s discretion)
If your dependant is a child, a children’s allowance may be payable. This would be payable until you child is 18 years old, or under 23 years old and in full-time education.
If you marry in retirement, your spouse would be entitled to a spouse’s pension. You won’t be able to make any changes to your pension once it has gone into payment.
Contact the Scheme administrator, Railpen, for more information.
If you’ve paid Additional Voluntary Contributions (AVCs) you have a number of options regarding when, to take them. For example, you can:
- take your AVCs at the same time as your other pension benefits
- delay taking your AVCs until after you’ve already retired (up to your 75th birthday)
- transfer your AVCs to another pension provider (this option is only available if you have left the Scheme)
You may also decide to use your AVCs in a number of different way. For example, you can use some, or all of your AVCs to:
- increase your tax-free lump sum (subject to HMRC limits)
- get a taxed lump sum (subject to tax allowances)
increase your pension - either within the Scheme (this option is only available to members who started paying AVCs before 6 April 2006) or by buying a pension (annuity) with another provider on the open market.
There are a number of restrictions that apply. For example, if you wish to use your AVCs as an additional tax-free lump sum, the Rules first require a mandatory amount of CARE Pension to be given up for the tax-free lump sum. This is equivalent to the default lump sum you would have built up in the Scheme had CARE not been introduced. You can find out more about the steps used to calculate your tax-free lump sum in your member booklet.
You can find out more about taking your AVCs in the AVCs guide.
The earliest age that you can usually access your pension and is set by the government and is known as the Normal Minimum Pension Age (NMPA). This is currently age 55, though this is rising to age 57 from 6 April 2028. This change will not affect your ability to take your pension earlier than these ages due to ill health, or if you qualified for an earlier Protected Pension Age (PPA).
PPAs essentially protect rights for individuals who had the right to take their benefits prior to NMPA before it increased. Which PPA may apply to you depends on the Magnox Group’s rules, your own circumstances, when you joined the scheme, whether you are a “Protected Person” under the Electricity and Energy Acts and under which type of early retirement you may access your pension.
The below table summarised the Magnox Group’s current NMPA and PPA, how it will change from 6 April 2028 and whether any PPAs apply:
| Type of early retirement | Affected members | Current position | From 6 April 2028 |
| Flexible or voluntary early retirement | All active and deferred members | From NMPA age 55 | From NMPA age 57 |
| Reorganisation or redundancy | Active member who:
| PPA of 50 Note: if a member does not retire immediately upon leaving then they would forfeit their PPA of 50 and the earliest they could subsequently access their pension would be age 55. | PPA of 50 Note: if a member does not retire immediately upon leaving then they would forfeit their PPA of 50 and the earliest they could subsequently access their pension would be age 57. |
| Reorganisation or redundancy | Active members who:
| From age 55 | PPA of 55 |
Types of early retirement
There are 3 types of early retirement:
- Flexible early retirement – in which you choose to start taking your pension before your Normal Pension age (NPA) and continue to work for the Company
- Voluntary early retirement – in which you choose to leave the Company and retire before NPA
- Compulsory early retirement – in which the Company, determines you must retire before Normal Pension Age, this could be due to redundancy or re-organisation.
You can start receiving your benefits before your NPA. The earliest age will depend on the type of early retirement you take, as described above. If you decide to start receiving your pension before your NPA, in most circumstances it will be reduced for early payment . For more information please refer to your member booklet. You can also see the current early retirement factors.
If you want to retire early for whatever reason, you need to let Railpen know at least 3 months before you plan to stop work. See the taking your benefits page for more information on the application process.
You may be able to claim your Scheme benefits early for ill-health. This means that you are no longer able to carry out any work that the Company may reasonably offer you (taking into account your previous job role).
You will need to meet specific criteria to qualify for ill-health retirement, and your status will need to be confirmed by the Company’s appointed medical adviser.
If you meet the criteria, your pension and lump sum will be paid immediately. It will be calculated as if you had remained in service until your NPA. The calculations will include any back-service credit and any additional payments you may have made towards your pension. Certain tax limits will apply, though.
You can find more details about this and how your pension and lump sum will be calculated in your member booklet.
While you are an active member of the Scheme, you can choose to delay taking your benefits beyond your Normal Pension Age, this is known as late retirement.
If you decide to defer the payment of your benefits, you will continue to pay contributions and build up benefits until you retire or leave.
