The Combined Nuclear Pension Plan

How do you work out my pension?

At retirement, the value of your Investment Account is used to provide your benefits. The value of the account will depend upon how much has been contributed and the investment returns that the contributions have earned.

The amount of the monthly pension will depend on the remaining amount of your account after the lump sum and at the rate at which cash is converted into pension (the Annuity Rate).  The actual conversion of the Investment account to a pension will depend on market conditions at the time of retirement.  Pension benefits will be secured by the purchase of an annuity from an insurance company and so the rate cannot be guaranteed in advance.  Full information will be provided to you when you retire to help you understand the options open to you.

When can I draw my pension?

Your pension benefits from the Defined Contribution structure of the Plan will come into payment when you choose to retire and purchase an annuity or investigate an alternative option.

You may retire early after age 55 if you give written notice to the Trustee of at least one month. You must confirm that you wish to retire from the Plan and be paid your pension via an annuity or alternative option that you select. If you retire early, it is likely that your Investment Account will be lower than if you had remained in service until Pension Age as fewer contributions would have been made and they would have been invested for a shorter period. Your pension will also be more expensive as the insurance company will expect to pay it for a longer period.

What choices do I have when I retire?

At retirement you will be able to choose:

• The type of pension you want to receive
• How this will increase whilst in payment (for example with or without increases once in payment)
• Whether any payments will be guaranteed if you die soon after retiring (for example you could choose a pension where the first five years payments are guaranteed)
• The level of Dependants’ pension that would be payable on your death (for example, a spouse’s pension of 50% or two thirds of your pension or you may not wish to purchase any spouse’s pension)
• How much tax free cash you would like to receive. You will be able to take up to 25% of your Investment Account as a tax free lump sum

The amount of the monthly pension will depend on the remaining amount of your account after the lump sum and at the rate at which cash is converted into pension (the Annuity Rate).  The actual conversion of the investment account to a pension will depend on market conditions at the time of retirement.  Pension benefits will be secured by the purchase of an annuity from an insurance company and so the rate cannot be guaranteed in advance.  Full information will be provided to you when you retire to help you understand the options open to you.

There may be alternative options available to you at retirement.  If you are interested in finding out more about these options and whether they are appropriate for you, then you should seek independent financial advice.