You are responsible for reporting any excess in your benefits over the annual allowance (after using up any carry forward) via self-assessment. The amount of annual allowance charge will be included in your tax calculation and you would normally have to pay any charges by the usual self-assessment payment deadlines.   

The Scheme also has a responsibility to notify HMRC via Event Reporting if someone exceeds the Annual Allowance.

A member can request use of the ‘Scheme Pays’ facility in order to meet the tax charge.

The Annual Allowance (AA) is a limit on the amount of pension savings you can make into your scheme(s) (you may have more than one) in any given tax year. If you exceed your AA, you may be charged tax on the excess.

The AA is currently £60,000, although a lower allowance applies to high earners. If your taxable income is more than £200,000, you should learn more about the  tapered annual allowance as it may affect you.

You can carry forward any unused Annual Allowance from the past three years.

A lower allowance of £10,000 may apply to any future pension savings you make to defined contribution pension arrangements if you’ve taken money out of your pension pot. This is known as the ‘Money Purchase Annual Allowance’.

The Lifetime Allowance (LTA) is the maximum amount you can save into all your pensions throughout your working life before you have to pay tax. The LTA for the tax year 6 April 2023 to 5 April 2024 is £1,073,100.

You would have to pay tax on any pension savings you have that are over the LTA limit. The amount of tax you owe will depend on your income tax rate, rather than the LTA charge that was in place before 5 April 2023.

You should be aware that from 6 April 2024, there is a limit of £268,275 on the amount you can take as a lump sum when you take your pension. This limit won’t affect you if you have Lifetime Allowance protections.

You can read more about the AA and LTA at  www.gov.uk/tax-on-your-private-pension.

You are responsible for monitoring your AA and LTA and reporting any excess to Her Majesty’s Revenue & Customs (HMRC).

Any scheme pays requests have no impact on future PIA amounts as the deduction is either made from a member’s AVC pot, or only realised at retirement/transfer if a member has no AVC pot. However as it reduces the benefits payable, it may help those who have Lifetime Allowance issues.

If you are liable for an annual tax charge of £2,000 or more, you can elect for the Magnox Group to pay the charge on your behalf.

• If you have an AVC pot

If you opt for the Scheme to pay some or all of your Annual Allowance charge, we will deduct the AA charge from your AVC pot at the point we make the payment.

AVC case example: John elected for Scheme pays to pay his AA charge of £5,000 and has a current AVC pot of £20,000. We will therefore reduce his AVC pot by £5,000 to pay for his AA charge.

• If you do not have an AVC pot

If you opt for the Scheme to pay some or all of your Annual Allowance charge, the benefits that you receive when you retire/transfer will be reduced in order for Scheme to recover the tax paid on your behalf. We record the amount of Annual Allowance charge paid as a notional negative amount and we will arrange for this to be paid on your behalf. We will charge you interest on the amount of tax paid each April at an interest rate set by the Scheme Actuary until you retire/transfer.

When you retire, the total negative amount due, including interest at a rate provided by the Scheme Actuary, is permanently deducted from your Scheme lump sum.

No AVC case retirement example: John elected for Scheme pays to pay his annual allowance charge of £5,000 and is retiring on his 63^rd birthday.  At his retirement date, the total negative amount due is £6,800. Before the deduction is made, John has an annual pension of £10,000 and a Scheme lump sum of £30,000. After the deduction, John will receive an annual pension of £10,000 plus a tax free lump sum of £23,200.

No AVC case transfer example: John elected for Scheme pays to pay his annual allowance charge of £5,000 and is now transferring his benefits to another registered pension Scheme. At his transfer date, the total negative amount due is £6,800. Before the deduction is made, John's total transfer value is £300,000. After the deduction, the transfer value paid to John's ‘receiving Scheme' will be £293,200.

The amount you’ll get depends mostly on how much has been paid into it and:

• the rules of your Scheme, if you’re in a defined benefit scheme; or
• how well your investments have performed if you’re in a defined contribution scheme

The Scheme is defined benefit, while additional voluntary contribution (AVC) arrangements are defined contribution.

Retirement is no longer seen as ‘the end of the road’, and most of us won’t want to change our lifestyles because of it. Why not take the time to think about what you want for your retirement so you can start planning for it today?

The  lifestyle calculator can help you get an idea of what your unique lifestyle costs and how much income you may need to afford it when you retire.

As we will deduct the negative amount due from your AVCs and/or Scheme lump sum, your benefits will be reduced for LTA purposes.

Example: Using our previous retirement example where John elected for scheme pays to pay his annual allowance charge of £5,000 and is retiring on his 63^rd birthday. After the deduction is made, John’s total LTA is £223,200 (i.e. 20 x £10,000 + 23,200).

A workplace pension is a way of saving for your retirement organised for you by your employer. It is sometimes called a ‘company pension’, an ‘occupational pension’ or a ‘works pension’.

Put simply, a pension is a savings scheme that you pay into while you are working to help make sure you have regular money coming in when you retire.

Its tax efficient as the money you pay in, or contribute, is taken from your salary before tax is deducted, reducing the overall amount of tax you will pay on your salary. Your employer also contributes to your pension, so together you and your employer are saving for your future.

Many of us don’t want to have to compromise our lifestyles in retirement, so taking an interest in your pension planning is a great way to do something positive for the future.

Your Benefit Statement will give you an indication of how much of the annual allowance you have used. Your Scheme Administrator will also advise you if you exceed the Annual Allowance.

Yes, but, please think very carefully before you transfer your pension to another provider. Consider your long-term financial position and what you want your pension to support in the future. You should carefully compare the benefits of the Scheme with those offered by alternative personal pension plans or any other arrangements. 

You may want to consider getting some help from an Independent Financial Adviser (IFA). You can find IFAs in your local area at www.unbiased.co.uk 

You can learn more in the  Transfers and scams section or in your  member booklet.

This is always a challenging time. If you face divorce or the dissolution of a civil partnership, your pension is likely to be considered along with your other assets when financial settlements are worked out. 

A court order can be made to transfer part of the value of your pension benefits during the divorce or dissolution proceedings. If this were the case, it would mean your Scheme benefits will reduce to provide benefits for your ex-spouse or ex-civil partner.

The earliest age you can receive your pension on a voluntary basis is age 60. Depending on when you joined the Scheme, some or all of the pension will be reduced for early payment.

If you are being made redundant and you joined the Scheme before 1 February 2003, your pension will be paid from age 50 (or immediately if you are above 50 at the date of redundancy). If you are below age 50 on redundancy, you may elect to wait until you have reached Normal Retirement Age. If you do this, you may receive an additional lump sum from the Company.

If you are being made redundant and you joined the Scheme on or after 1 February 2003, you can ask for your pension to be paid at any age from 55 onwards but it will be reduced for early payment.

Please refer to your  member booklet for full details of any of these options.

The Magnox Group of the ESPS no longer permits pension benefits to be transferred in from other arrangements.

Yes, providing you have not started to receive your pension.

A guaranteed transfer value quotation can only be provided to members who have already left the scheme (either by resigning or opting out of the scheme). You can however ask for an illustration of the transfer value if you are still an active member of the scheme i.e. still building up your pension.

Transfer value quotations estimates can be requested from Railpen, the administrator by contacting enquiries@railpen.com. Please include your pension reference number and Nl number or date of birth with the request. A charge will apply if you ask for more than one quote in any 12 month period.

If you joined the industry on or after 1 April 1988 your Normal Pension Age is 63. If you joined the industry before 1 April 1988, your Normal Pension Age is 60. 

These are the possible benefits (such as a pension and lump sum) you could leave behind for loved ones if you die while in employment. 

It’s important the Trustee understands where you’d like these benefits to go. Therefore, we strongly advise you to complete a Nomination form so the Trustee can consider your wishes. 

Make sure that you update your Nomination regularly to reflect any changes to your beneficiaries over time. 

You can find more information and a copy of the form in the  Nominations section.

If you are absent from work, you will need to check about continuing contributions with your employer.

None of us likes to think that we may fall seriously ill. If you stop working through ill health, you can apply for ill-health benefits (as long as you have not already taken your benefits while in employment).

You will need to meet certain criteria before you’ll be allowed to take ill-health benefits.

You can find more information in your  member booklet

If you leave the Company or decide to leave the Scheme for any reason, your benefits will be kept in the Scheme until you’re eligible to claim them and you will become a ‘deferred’ member. 

You data-sf-ec-immutable="" may also transfer your Scheme benefits to another pension arrangement, if that arrangement accepts transfers in.

No. The Trustee, the Scheme administrators, and your employer are not authorised to offer advice. Any information provided by them should not be relied on as advice about your individual circumstances. 

However, you might want to get independent advice before making any decisions about your financial future. 

You can visit www.unbiased.co.uk for a list of independent financial advisers in your area.

The rules only provide for a pension to be paid to the person you are legally married to or in a civil partnership with. There is no automatic right to benefit for other dependants. After your death, the Trustee can consider paying a pension on a discretionary basis. The Trustee will only consider paying to someone with whom you were living at the date of death, and were in a long standing relationship with and where there was financial dependency/inter-dependency. In any event the Trustee has absolute discretion to decide whether or not a benefit will be paid.

Each year, you are sent a Benefit Statement with an updated estimate of the value of your pension. You can also request an estimate of your benefits by  contacting the Scheme administrator, Railpen.

If you are about to become a parent, congratulations! If you are absent from work, you will need to check about continuing contributions with your employer. If you get maternity, paternity, additional paternity, family or adoption leave pay, your contributions are based on what you are earning at that time, but your benefits are based on your normal rate of pay

You should complete a  Nomination form to tell the Trustee who you’d like them to consider making a lump-sum payment to once you die.

Being a member of the Scheme offers a wide range of benefits for you and your loved ones. These may include the following:

• tax relief on the contributions you make to your pension
• a spouse’s pension if you die
• a lump-sum payment if you die while in service
• children’s pensions or a dependant’s pension 
• a one-off lump-sum payment and a pension for life when you retire

You can learn more about the benefits that apply to you by reading your  member booklet.

If you opt- out of the Scheme for any reason you will not be allowed to re-join.

If you remain in employment, you may be eligible to join an alternative scheme run by your employer.

• If you are a member of the Site Licence Company (SLC) Section you may be eligible to join NEST. Please contact group.pensions@magnoxsites.com for more information or look at www.nestpensions.org.
• If you are a member of the Cavendish Nuclear Section, you may be eligible to join the BRSS scheme, which is a defined contribution pension scheme run by your employer. Please contact your HR department for more details.
• If you are a member of the NNL Section, you may be eligible to join the NNL Pension Scheme, a defined contribution pension scheme run by your employer. Please contact your local HR representative for more details.
• If you are a member of the Atkins Section, please contact your HR Department for details of your options.

Additional Voluntary Contribution (AVC) arrangements are tax-efficient ways for pension scheme members to save a bit more towards their retirement. 

AVCs are contributions you make from your pay (before tax is taken) on top of the normal contributions you make as a Scheme member. 

AVCs can be a way of making up the shortfall (if there is one) between the pension you will get in retirement and the income you will need to sustain the lifestyle you want after you stop getting a salary from your employer. 

Your contributions are tax-free, subject to certain limits. 

AVCs may be something you want to consider if you:

• have earnings which don’t count towards your Scheme pension, such as bonuses or overtime;

or

• you simply want to save a bit more towards your future

You can learn more in the  AVCs section.

You can apply for your benefits by  contacting the Scheme’s administrator, Railpen.

RPMI will write out to you in advance of your Normal Retirement Age.

If you want to take your benefits earlier than your normal retirement age from age 60, you should apply at least six months before your chosen payment date.

Only the benefits you have built up while you were a member will be used to calculate what you may receive, if you retire due to ill health. As you have already left the Scheme the benefits may be reduced for early payment

Yes, please do! It’s just as important as when you were an active member. You can find more information about the process and download the relevant form on  Nominations page.

Unless you left your employer due to compulsory redundancy, you may only take your benefits from age 60.You should also be aware that your benefits would be reduced in line with how early you take them before your Normal Retirement Age. You can find out more about early retirement benefits in your  member booklet.

You can request an estimate of your benefits by contacting the  Scheme administrator, Railpen.

Yes, but, please think very carefully before you transfer your pension to another provider. Consider your long-term financial position and what you want your pension to support in the future. You should carefully compare the benefits of the Scheme with those offered by alternative personal pension plans or any other arrangements. 

You may want to consider getting some help from an Independent Financial Adviser (IFA). You can find IFAs in your local area at  www.unbiased.co.uk 

You can learn more in the  Transfers and scams section or in your  member booklet.

Your membership of the Scheme will terminate automatically if you leave the Company’s employment unless you start work immediately with one of the other electricity companies which participate in the Scheme. In this case, you should speak to the Pensions Section of your new company about the transfer arrangements that will apply.

You can opt out of the Scheme at any time whilst still employed by the Company, but you must give two months’ notice in writing. If you opt out of the Scheme, you will not be permitted to rejoin.

The Scheme offers valuable benefits for your beneficiaries, although specific benefits depend on your benefit category. You can find out which ones apply for you and your loved ones in your  member booklet.

Your pension will be paid directly to your bank or building society. Please remember to tell your Scheme administrator, Railpen, if there are any changes to your bank or building society details. You can find contact information on the  contact details page.

Once you retire, your pension will be paid to you each month on the 24^th of the month or earlier working day if this falls on a bank holiday or weekend.

Yes, your pension is taxed like any other income through Pay As You Earn (PAYE). The amount you are taxed is based on the tax code that HM Revenue & Customs (HMRC) provides to your pensions administrator. 

If you have a query about your UK tax code, contact HMRC on 0300 200 3300.

If, for any reason, you feel unable to manage your own affairs, you can make legal arrangements to pass the responsibility to a family member or someone else close to you. 

You, or your chosen representative, will then need to tell the Scheme’s administrator, RPMI. You can find contact information on the  Contact details page.

No problem, just remember to let your Scheme administrator know. Pension payrolls are processed approximately two-three weeks before the payment date. Therefore, if you change your bank or building society account, you must let your Scheme administrator have the details of your new account at least three weeks before your pension is due to be paid. 

If you are unable to give three weeks' notice then please make sure you keep your old bank account open to avoid any delay in your pension reaching you.

You can find contact information for your Scheme administrator on the  Contact details page.