Your pension benefits and increases
Select from the options below to find out more.
How and when your pension is paid
Your pension is paid around the 24th of each month (or the last working day before), into your bank or building society account by the Scheme administrator, Railpen.
Your pension is reviewed every year and increases in line with the Scheme Rules. You can find out more about the annual pension increase by selecting that option from the contents list above.
As with any other form of income, your pension is subject to tax. Any tax you owe is taken from your pension via Pay As You Earn (PAYE) before it reaches your bank account.
The amount of tax you pay is based on your tax code, which is set by HM Revenue & Customs (HMRC). You can see your current tax code on your P60 (see the contents list above). If you have any questions about it, you should speak to your local tax office or call the HMRC helpline on 0300 200 3300.
You can find more information at gov.uk/tax-codes and on the tax and your pension page.
Your P60
You get a P60 form in April, at the end of every tax year. It confirms your final tax code for the year and has details of:
- your pension and/or earnings from a job
- tax paid
- National Insurance contributions paid by you and your employer (you shouldn’t be paying any if you’ve reached State Pension age)
- your final tax code
You should keep your P60 for at least 2 years in case you need to complete a tax return. It may help with other paperwork too.
You can find a copy of your P60 when you log in to your myESPS account or contact the Scheme administrator, Railpen.
Using your myESPS account
Here’s a step-by-step guide to logging in to your myESPS account, and registering for one if you haven’t already.
Your annual pension increase
Your Magnox pension is reviewed and increased every year.
The Final Salary element and the CARE element of your pension are increased using different measures:
- Your Final Salary pension increases in line with the Retail Price Increase (RPI) from the previous September
- Your CARE pension increases in line with the Consumer Price Index (CPI) from the previous September
The combined increase is applied to your pension each April.
The Company cannot limit the CPI increase even if it is above 5%.
If the increase in RPI is more than 5%, the Company may limit the pension increase but this will still be at least 5%.
The last few years increases, for each of the sections of the Magnox Scheme, are documented in the annual Report and Accounts usually on page 8.
How much of the Final Salary increase you get will depend on how long your pension has been in payment for. For example, if your pension commenced on or after 24 April 2023, you won’t get the full increase in April 2024 because your pension has been paid for less than a year. You will get the full CARE increase regardless of when you retired.
If you are a male pensioner over the age of 65, or a female pensioner over the age of 60, elements of your pension called Guaranteed Minimum Pension (GMP) will increase at different rates. Your annual pension increase letter will confirm if this applies to you.
You will get a letter each April confirming your pension amount and the increase you’ll receive.
You can also find your pension payment amount on your payslips in your myESPS account. Please bear in mind payslips are only issued if your net payment changes by more than £1.
Your tax code may change if your pension increases
Your pension is a taxable income. The amount of tax you pay depends on your tax code, issued by HM Revenue & Customs (HMRC). You can see your tax code on your P60 (see above).
If your income changes, for example as a result of the pension increase, then HMRC may change your tax code. This in turn will affect how much tax you pay.
If your tax code changes, HMRC will usually contact you directly.
Please visit the tax on my pension page or contact HMRC for further information.
Keep your details up to date so we can pay your pension
It’s important you tell us as soon as possible if your details change, particularly if you change your bank or building society or move house. That way, you can continue to get your pension payments without any delays and we can contact you about your pension if we need to.
You can update your details in to your myESPS account. Just follow the steps in the guide to updating your details.
Alternatively, you can complete the forms on this page and return them to the Scheme administrator, Railpen.
Pension payrolls are processed approximately 2-3 weeks before the payment date. So, if you change your bank or building society account, you must let Railpen have the details of your new account at least 3 weeks before your pension is due to be paid.
If this isn’t possible, please keep your old bank account open to avoid any delay in your pension reaching you.
