Taking your benefits
You can choose to take your benefits either at Normal Pension Age (NPA) or earlier.
Choose from the options below to understand more about what to do before you apply for your benefits and about the 2 options available for deferred members of the reformed SLC section of the Magnox Scheme.
Before you apply to take your benefits
Before applying, it’s important you understand all of the options available to you, particularly when you can retire and the different ways of taking your benefits.
You can find more information using the links below:
Taking your benefits at Normal Pension Age (NPA)
You can find a step-by-step guide to the retirement process for members taking their deferred benefits at NPA below.
For more information on NPA and to check yours, please go to the pension benefits page or read your member booklet.
The Scheme administrator, Railpen, will contact you 6 months before you reach Normal Pension Age (NPA).
They will send you a retirement pack containing your retirement quotation and the retirement form(s) you’ll need to complete, along with some useful information about the retirement process and the options you have.
The retirement quotation will show:
- the pension you might get
- your lump sum options (if applicable)
The figures quoted at this stage aren’t guaranteed and you won’t get final confirmation of your pension until just before your retirement date.
You need to return the form(s) to Railpen, confirming how you want to take your pension and confirming your bank details.
This should be done as soon as possible, particularly if you want to exercise any options beyond the standard pension and lump sum.
For example, if you want to:
- Exchange part of your pension for an additional lump sum – this must be done within the 2 months prior to your pension commencing.
- Exchange part of your pension for additional spouse’s/dependant’s pension - you must give notice in writing during the month before retirement.
- Exchange all or part of your lump sum for additional pension - you must give notice in writing during the month before retirement.
You can find more information about these options on the your retirement options page.
If you return your forms after NPA, your benefits will be backdated to NPA as they are not able to be paid later than this.
Once you accept your quotation, and confirm your choices, you cannot change your mind.
3. Getting your benefits
Railpen will process your forms and check they have all the information they need to start paying your benefits. If not, they will contact you as soon as possible for further details.
Railpen will aim to pay your benefits within 10 working days of either, your retirement date, or when all of the necessary information has been received (whichever is later). That means there might be some delays if the forms are returned late.
Once Railpen has setup your benefits, you will receive a letter confirming what payments you will get and when. Usually this letter is sent just before, or around your retirement date.
Once your final AVC values are available we will then recalculate your benefits. If this results in an increase in your retirement benefits, we will send you a final statement confirming the new figures. This should normally be around 8 weeks after you retire.
Pensions are paid on the 24th of each month (or the last working day before) and are reviewed and increased annually in line with the Scheme Rules.
You can find out more about what happens once you’ve started taking your benefits in the pensioners section.
Taking your benefits before reaching NPA (early retirement)
If you wish to claim your deferred benefits early, you’ll need to contact Railpen and let them know of your decision.
You can find a step-by-step guide to the retirement process for members taking their benefits early below.
To begin the process for taking your pension, you need to contact the Scheme administrator, Railpen, and let them know you want to start taking your benefits early.
You can find Railpen’s contact details on the get in touch page.
2. Getting your retirement quote and confirming you want to retire early
Railpen will then send you an early retirement quotation showing:
- the pension you might get
- your lump sum options (if applicable)
You’ll also receive a form to complete and return if you would like to proceed with taking your benefits early.
This also confirms that you understand your pension will be reduced in line with early retirement factors for early payment.
Once you have returned your form to Railpen and confirmed you want to retire early, they will send you a retirement pack. This includes retirement form(s) to complete, about how you want to take your pension and confirming your bank details.
You need to return the form(s) to Railpen, as soon as possible, particularly if you want to exercise any options beyond the standard pension and lump sum.
For example, if you want to:
- exchange part of your pension for an additional lump sum – this must be done within the 2 months prior to your pension commencing.
- exchange part of your pension for additional spouse’s/dependant’s pension - you must give notice in writing during the month before retirement.
- exchange all or part of your lump sum for additional pension - you must give notice in writing during the month before retirement.
You can find more information about these options on the your retirement options page.
Once you accept your quotation, and confirm your choices, you cannot change your mind.
Railpen will process your forms and check we have all the information we need to start paying your benefits. If not, they will contact you as soon as possible for further details.
Railpen aim to pay your benefits within 10 working days of either, your retirement date, or when all of the necessary information has been received (whichever is later). That means there might be some delays if the forms are returned late.
Once Railpen has setup your benefits, you will receive a letter confirming what payments you will get and when. Usually this letter is sent just before, or around your retirement date.
Once your final AVC values are available we will then recalculate your benefits. If this results in an increase in your retirement benefits, we will send you a final statement confirming the new figures. This should normally be around 8 weeks after you retire.
Pensions are paid on the 24th of each month (or the last working day before) and are reviewed and increased annually in line with the Scheme Rules.
You can find out more about what happens once you’ve started taking your benefits in the pensioners section of this website.
